South India cotton yarn prices steady amid weak market sentiment

The Mumbai market experienced slow demand for various counts and varieties of cotton yarn, although prices remained steady. A trader from the Mumbai market told Fibre2Fashion, “Buyers are hesitant to make fresh purchases. Domestic issues continue to influence the cotton yarn market. Continuous disruptive announcements from the US are also dampening sentiment in the local cotton yarn market. Hopefully, we may see positive signs in April 2025.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,420-1,450 (~$16.29-$16.63) and ₹1,310-1,350 per 5 kg (~$15.02-$15.48) (excluding GST), respectively. Other prices include 60 combed warp at ₹314-318 (~$3.60-$3.65) per kg, 80 carded weft at ₹1,420-1,480 (~$16.29-$16.97) per 4.5 kg, 44/46 carded warp at ₹263-268 (~$3.02-$3.07) per kg, 40/41 carded warp at ₹250-255 (~$2.87-$2.92) per kg and 40/41 combed warp at ₹266-270 (~$3.05-3.10) per kg, according to trade sources.

The Tiruppur market also witnessed stability in cotton yarn prices, with average demand from the downstream industry. According to market sources, south India experiences strong demand for cotton clothing during the summer season, which serves as a backbone for the market, given the overall weak sentiment. Export demand has also been average in recent weeks, with garment units producing retail products for the overseas market. OTEXA data revealed that textile and garment imports from India and the world have seen impressive growth. However, payment constraints have restricted buyers' purchasing capacity.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.92-3.02) per kg (excluding GST), 34 count combed cotton yarn at ₹264-271 (~$3.03-3.11) per kg, 40 count combed cotton yarn at ₹276-288 (~$3.17-3.30) per kg, 30 count carded cotton yarn at ₹235-240 (~$2.70-2.75) per kg, 34 count carded cotton yarn at ₹240-245 (~$2.75-2.81) per kg and 40 count carded cotton yarn at ₹248-253 (~$2.84-2.90) per kg.

In Gujarat, cotton prices remained steady after gains over the past few days. However, market sentiment remains weak, as spinning mills are reluctant to make large purchases. Weak demand in the downstream textile industry and a declining trend in ICE cotton are affecting the domestic spot market. Traders noted that although cotton production is decreasing in the country, it has failed to support market sentiment.

Cotton arrivals were estimated at 12,000-16,000 bales of 170 kg in Gujarat and 80,000-90,000 bales nationwide. The benchmark Shankar-6 cotton was quoted between ₹53,300-53,800 (~$611.27-$617.01) per candy of 356 kg, while southern mills were looking to buy cotton at ₹54,000-54,500 (~$619.30-$625.03) per candy. Seed cotton (Kapas) was traded at around ₹7,400-7,500 (~$84.87-$88.31) per quintal.

Disclaimer: The prices in this article are based on market sources and hence, readers are recommended to do their own research before making any decision. The publisher and their affiliates are not liable for any inaccuracies or actions taken based on this information.

ALCHEMPro News Desk (KUL)