South India sees high cotton yarn demand, prices further up in Mumbai

The Mumbai market saw an increase of ₹3–4 per kg across various counts and varieties, with improved buying activity from the downstream industry. A trader from the Mumbai market told Fibre2Fashion, “Garment production has picked up for the upcoming summer season. Improved garment exports and the rising cost of natural fibres are also supporting cotton yarn prices. The market expects this positive trend to continue for at least 2–3 weeks.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold before Diwali at ₹1,440-1,480 (approximately $17.04-$17.51) and ₹1,380-1,430 per 5 kg (approximately $16.33-$16.92) (excluding GST), respectively. Other prices include 60 combed warp at ₹336-343 (approximately $3.98-$4.06) per kg, 80 carded weft at ₹1,410-1,480 (approximately $16.69-$17.51) per 4.5 kg, 44/46 carded warp at ₹260-270 (approximately $3.08-$3.20) per kg, 40/41 carded warp at ₹255-264 (approximately $3.02-$3.12) per kg and 40/41 combed warp at ₹285-292 (approximately $3.37-3.46) per kg, according to trade sources.

In Tiruppur, knitting cotton yarn prices remained stable, but the market observed strong demand for garment exports. Reports indicate that garment units in the region have received increased export orders redirected from Bangladesh. Traders suggested that spinning mills might attempt to improve their realisation through either a price hike or a reduction in discounts. Mills are expected to revise their rates for December 2024 in the coming week.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹260-267 (approximately $3.08-3.16) per kg (excluding GST), 34 count combed cotton yarn at ₹269-276 (approximately $3.18-3.27) per kg, 40 count combed cotton yarn at ₹280-290 (approximately $3.31-3.43) per kg, 30 count carded cotton yarn at ₹236-241 (approximately $2.79-2.85) per kg, 34 count carded cotton yarn at ₹231-243 (approximately $2.74-2.88) per kg and 40 count carded cotton yarn at ₹249-254 (approximately $2.95-3.01) per kg.

In Gujarat, cotton prices remained rangebound over the last couple of days. Prices had risen by ₹500 per candy of 356 kg late last week. Traders noted that the Indian government’s nodal agency, Cotton Corporation of India (CCI), is buying seed cotton at the minimum support price (MSP) but is also selling cotton at prices higher than the market rate. This could help support cotton yarn prices. Traders also mentioned that spinning mills are actively buying cotton as the entire value chain's inventories are nearly empty, which is a positive factor for the cotton trade in the state. Cotton arrivals were estimated at 30,000–35,000 bales of 170 kg in Gujarat and 155,000–160,000 bales across the country.

The benchmark Shankar-6 cotton was quoted between ₹54,500–55,000 (approximately $644.94–$650.85) per candy of 356 kg, while southern mills were looking to buy cotton at ₹55,000–55,500 (approximately $650.85–$656.77) per candy. Seed cotton (kapas) was traded at around ₹7,500–7,600 (approximately $88.75–$89.94) per quintal.

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)