South India's cotton yarn trade slows amid weak demand

Mumbai market stabilised after a ₹3–4 per kg price drop earlier this week. However, the lower prices failed to stimulate buying, as the fabric trade also remained sluggish. A Mumbai-based trader told Fibre2Fashion, “Loom workers will return in the first week of June, but cotton yarn buying has not yet picked up. Power looms and auto looms are seeing poor fabric offtake from the garment industry. The rainy season typically sees higher demand for rough-quality yarn, but traders are uncertain if demand will improve this year.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$16.16-16.75) and ₹1,340-1,390 per 5 kg (~$15.70-16.28) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.69-3.76) per kg, 80 carded weft at ₹1,385-1,450 (~$16.22-16.98) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.10-3.18) per kg, 40/41 carded warp at ₹248-255 (~$2.90-2.99) per kg and 40/41 combed warp at ₹268-272 (~$3.14-3.19) per kg, according to trade sources.

In Tiruppur, higher discounts were offered by spinning mills as they struggle to find potential buyers. However, these discounts are selectively available to large buyers. Market rates for major counts and varieties did not see a significant fall. Market sources stated that demand remains subdued as buyers lack confidence in future demand for fabric and garments. Domestic summer demand is nearly over, and export orders remain limited.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹257-265 (~$3.01-3.10) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (~$3.12-3.20) per kg, 40 count combed cotton yarn at ₹278-291 (~$3.26-3.41) per kg, 30 count carded cotton yarn at ₹237-242 (~$2.78-2.83) per kg, 34 count carded cotton yarn at ₹242-247 (~$2.83-2.89) per kg and 40 count carded cotton yarn at ₹250-255 (~$2.93-2.99) per kg.

In Gujarat, cotton trading remained limited, with prices holding steady. Traders reported that stockists and ginners hold limited inventory this season, as price disparities in seed cotton made ginning unprofitable. Mills are reluctant to sell their stock at current unattractive prices and are instead relying more on auction sales by the government’s nodal agency, the Cotton Corporation of India (CCI).

Cotton arrivals were estimated at 4,000–5,000 bales (170 kg each) in Gujarat and 28,000–30,000 bales nationwide. The benchmark Shankar-6 cotton was quoted at ₹54,000–54,300 (~$632.49–636) per candy (356 kg), while southern mills were bidding ₹55,000–55,500 (~$644.20–650.06) 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)