South India's cotton yarn market hangs in the balance, prices stable

The cotton yarn market in south India remained in a state of uncertainty, with a mix of hope and disappointment prevailing. The Mumbai market experienced increased demand from spinning mills; however, cotton yarn prices failed to see an improvement due to a variety of factors. In Tiruppur, the market observed sluggish demand despite price stability. Trade sources indicated that the market had anticipated an upturn in demand from the weaving industry, but the current purchasing activity did not provide the expected support. Buying from the weaving industry often sees temporary increases in various markets, but this strength diminishes rapidly. Market experts pointed out that a delayed payment cycle was also contributing to disruptions in the buying process. 

Mumbai market experienced a slight uptick in demand from the weaving industry, although cotton yarn prices remained unchanged. A trader in Mumbai told Fibre2Fashion, "There was increased demand from downstream industries, but cotton yarn prices remained stable. Export demand for cotton yarn continued to be minimal in the south Indian market." If demand continues to improve, there is a possibility of cotton yarn prices trending upwards soon. 

In Mumbai, 60 carded yarn of warp and weft varieties was 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 ₹1,400-1,440 per 4.5 kg, 44/46 carded warp at ₹254-259 per kg, 40/41 carded warp at ₹238-244 per kg, 40/41 combed warp at ₹262-266 and 30/32 carded warp at ₹227-232 per kg, according to Fibre2Fashion's market insight tool TexPro. 

The Tiruppur market, on the other hand, experienced a slowdown in demand. Cotton yarn prices remained steady in the market, as both mills and stockists refrained from lowering their selling prices. A trader from Tiruppur shared with F2F, "Despite the decline in prices, cotton yarn demand did not pick up. Spinning mills had reduced their mill rates by ₹10 per kg, and the market had also witnessed a decrease of ₹2-3 per kg. However, demand did not increase even with more affordable prices. The market eagerly awaited stronger buying activity." 

In Tiruppur, cotton yarn prices remained stable. The prices were noted as 30 count combed cotton yarn at ₹256-260 per kg (excluding GST), 34 count combed cotton yarn at ₹266-271 per kg, 40 count combed cotton yarn at ₹277-281 per kg, 30 count carded cotton yarn at ₹233-236 per kg, 34 count carded cotton yarn at ₹237-242 per kg and 40 count carded cotton yarn at ₹240-246 per kg, as per TexPro. 

Cotton prices in the market experienced a decline due to sluggish purchasing by spinning mills and a payment crisis. Prices saw a decrease of ₹200-300 per candy of 356 kg, compared to the previous week. Traders attributed this decline to the slow buying behaviour of spinning mills. Furthermore, a payment crisis within the textile value chain had a dampening effect on market sentiments. Although cotton arrivals increased across India, Gujarat did not witness a significant surge in arrivals. This was mainly because farmers were reluctant to sell their cotton at lower price levels. Simultaneously, ginners were unwilling to pay higher prices due to the weak demand from the downstream industry. 

In the Gujarat market, Shankar-6 cotton was priced in the range of ₹55,300 to ₹55,500 per candy. Southern mills expressed their interest in purchasing cotton at prices ranging from ₹55,800 to ₹56,000 per candy. The total arrival of cotton in Gujarat amounted to 35,000 bales of 170 kg each. Across India, the estimated cotton arrival was in the range of 135,000 to 140,000 bales. 

ALCHEMPro News Desk (KUL)