South India's cotton yarn prices strengthen, buyers gear up for summer

South India’s cotton yarn market has experienced a positive trend due to heightened demand from the weaving industry. Prices of cotton yarn have risen by ₹2-4 per kg in the Mumbai and Tiruppur markets of south India. Trade sources report that buyers are eager to make new purchases, anticipating greater demand for the upcoming summer garment manufacturing season. Industry experts are confident that both domestic and foreign buyers will increase their purchases for the coming summer. There have been signs of more extensive sampling by potential buyers, and foreign brands may boost their purchasing as their stocks are depleting rapidly due to slow buying over the past several months. 

In the Mumbai market, there has been an increase of ₹3-4 per kg in cotton yarn prices. Various counts and types of cotton yarn have experienced higher demand. A Mumbai trader told Fibre2Fashion, "Selective counts and types of cotton have seen greater demand. Primarily, carded cotton yarn of higher counts has seen a price increase amid strong demand. Power looms are actively seeking to buy large quantities of cotton yarn, anticipating a rise in summer garment manufacturing in the coming weeks." 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,400-1,420 and ₹1,295-1,350 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹318-325 per kg, 80 carded weft at ₹1,400-1,440 per 4.5 kg, 44/46 carded warp at ₹254-263 per kg, 40/41 carded warp at ₹242-248 per kg, 40/41 combed warp at ₹262-266 and 30/32 carded warp at ₹230-235 per kg, according to Fibre2Fashion's market insight tool TexPro. 

The Tiruppur market also saw improved buying from the downstream industry. Prices of combed cotton yarn increased by ₹2-3 per kg due to stronger demand from the weaving sector. A Tiruppur trader told F2F, "There's better demand for combed cotton yarn, though demand for carded yarn is not as strong. The market saw a rise of ₹2-3 per kg for comber cotton yarn." He added that cotton yarn is likely to continue seeing increased demand as summer manufacturing picks up in the coming weeks. 

In Tiruppur, cotton yarn prices were noted as 30 count combed cotton yarn at ₹258-262 per kg (excluding GST), 34 count combed cotton yarn at ₹268-273 per kg, 40 count combed cotton yarn at ₹280-284 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. 

In Gujarat, cotton prices strengthened due to a rise in ICE cotton. Spinning mills showed keen interest in purchasing cotton at higher prices, with a noted increase of ₹500-700 per candy of 356 kg in the last few days. Traders attribute the domestic price increase to the recent rise in ICE cotton. Unginned cotton (Kapas) saw a more significant increase than ginned cotton, with Kapas prices reaching as high as ₹7,350 per quintal. However, tight payment flows remain a primary concern for many traders and ginners, who believe the issue stems from extensive inventories in ginning and spinning mills. 

In the Gujarat market, Shankar-6 cotton was quoted between ₹55,300-55,500 per candy of 356 kg. Southern mills showed an intention to purchase cotton at ₹55,800-56,000 per candy. The arrival was 35,000 bales of 170 kg in Gujarat, with all India arrivals estimated at 130,000-135,000 bales of 170 kg. 

ALCHEMPro News Desk (KUL)