South India's cotton yarn market faces weak demand, discounts rise

The Mumbai market continued to witness weak demand from the loom sector due to an acute shortage of workers. As a result, looms are operating at lower capacities. A trader from Mumbai told Fibre2Fashion, “Market prices of cotton yarn were hovering at previous levels, but mills are offering higher discounts to attract buyers. Slower consumption in the loom sector is the main cause of poor cotton yarn demand.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,400-1,430 (approximately $16.37-$16.72) and ₹1,340-1,390 per 5 kg (approximately $15.66-$16.25) (excluding GST), respectively. Other prices include 60 combed warp at ₹319-323 (approximately $3.73-$3.78) per kg, 80 carded weft at ₹1,400-1,460 (approximately $16.37-$17.07) per 4.5 kg, 44/46 carded warp at ₹270-275 (approximately $3.16-$3.21) per kg, 40/41 carded warp at ₹255-262 (approximately $2.98-$3.06) per kg and 40/41 combed warp at ₹272-275 (approximately $3.18-3.21) per kg, according to trade sources.

The Tiruppur market faced similar conditions in the cotton yarn trade. Gujarat-based mills were also struggling to find potential buyers. Cotton yarn prices remained steady, but trade sources said mills and stockists were offering additional discounts of up to ₹2 per kg. Fabric demand was weak in the southern states, with domestic summer demand almost over. Garment export demand also remained unsupportive. Sentiment may only improve if export orders increase. South Indian states are also facing a labour shortage.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹257-265 (approximately $3.00-3.10) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (approximately $3.11-3.19) per kg, 40 count combed cotton yarn at ₹278-291 (approximately $3.25-3.40) per kg, 30 count carded cotton yarn at ₹237-242 (approximately $2.77-2.83) per kg, 34 count carded cotton yarn at ₹242-247 (approximately $2.83-2.89) per kg and 40 count carded cotton yarn at ₹250-255 (approximately $2.92-2.98) per kg.

In Gujarat, cotton prices saw little movement amid limited trade. Buyers were looking to purchase cotton but were only finding available stocks. Slow demand from spinning mills indicated bearish conditions in the downstream industry. Auction rates of the Cotton Corporation of India (CCI) were reduced by ₹500 per candy of 356 kg. Trade sources said spinning mills were cautious about making purchases, and CCI had to reduce cotton selling rates due to poor demand. A trader from Gujarat indicated that ICE cotton prices are significantly lower than domestic prices, prompting an increase in cotton imports this season.

Cotton arrivals were estimated at 4,000–5,000 bales of 170 kg in Gujarat and 35,000–38,000 bales across the country. The benchmark Shankar-6 cotton was quoted at ₹54,000–54,300 (approximately $631.33–634.74) per candy of 356 kg, while southern mills were bidding at ₹55,000–55,500 (approximately $642.92–648.77) per candy.

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)