South India cotton yarn prices steady; low demand shuts power looms

Cotton yarn prices in Mumbai's market remained steady, despite scant trading activity due to a majority of power looms shutting down. The closures are a result of low demand from the garment industry. A Mumbai trader told Fibre2Fashion, "Power looms in Maharashtra and other regions are incurring significant losses due to poor garment industry demand. They have decided to cease operations for three weeks to avoid further losses." Trade experts are calling for immediate government intervention to curb the influx of fabric and garment imports from China and Bangladesh, warning that the domestic industry faces an unsustainable future in the current challenging market. 

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,400-1,420 and ₹1,275-1,330 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹315-322 per kg, 80 carded weft at ₹1,380-1,420 per 4.5 kg, 44/46 carded warp at ₹250-255 per kg, 40/41 carded warp at ₹236-242 per kg, 40/41 combed warp at ₹262-266 and 30/32 carded warp at ₹225-230 per kg, according to Fibre2Fashion's market insight tool TexPro. 

Cotton yarn prices in Tamil Nadu's Tiruppur market remained stable, even as weak buying from the weaving industry put pressure on spinning mills to offload their stock. Despite the difficult market conditions, mills opted to wait for improved buying opportunities. A Tiruppur trader told Fibre2Fashion, "There were no significant changes in market dynamics. Demand for cotton yarn was weak, but mills were unwilling to lower prices." 

In Tiruppur, cotton yarn prices remained stable, but demand was very weak. The prices were noted as 30 count combed cotton yarn at ₹260-265 per kg (excluding GST), 34 count combed cotton yarn at ₹268-273 per kg, 40 count combed cotton yarn at ₹280-285 per kg, 30 count carded cotton yarn at ₹235-238 per kg, 34 count carded cotton yarn at ₹238-243 per kg and 40 count carded cotton yarn at ₹247-252 per kg, as per TexPro. 

Cotton prices in Gujarat have seen a modest rise, increasing by ₹200-300 per candy of 356 kg over the past few days. Traders indicate that spinning mills are regular buyers, seeking to build up sufficient inventory. Despite this, spinners are uneasy about the weak demand and low price levels, suggesting that cotton prices may remain range-bound. In the Gujarat market, Shankar-6 cotton of the new season was quoted between ₹57,800-58,000 per candy of 356 kg, while old cotton hovered around ₹58,300-58,500. Cotton arrivals in Gujarat were approximately 25,000 bales of 170 kg, with all-India arrivals estimated between 88,000-90,000 bales. 

ALCHEMPro News Desk (KUL)