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South India yarn prices steady, optimism grows with rising ICE cotton

17 Sep '24
3 min read
South India yarn prices steady, optimism grows with rising ICE cotton
Pic: Adobe Stock

Insights

  • Cotton yarn prices in south India remained stable due to limited demand from the consumer and export markets.
  • Despite rising cotton prices, demand from the downstream industry remains weak, causing challenges for spinning mills and traders to maintain current prices.
  • Optimism persists as the sharp rise in ICE cotton suggests possible improvement in demand.
Cotton yarn prices in south India remained stable amid limited demand from the consumer industry and export market. This intermediary product, crucial for the textile industry, traded at previous levels in the Mumbai and Tiruppur markets. According to trade sources, the cotton yarn trade is facing inconsistent demand from the downstream industry. While rising cotton prices are supporting the yarn market, demand from the downstream sector remains uncertain. Spinning mills and traders are struggling to maintain current prices. However, there is optimism in the yarn market following a sharp rise in ICE cotton prices. In contrast, the Gujarat cotton market saw a narrow price range amid regular demand.

Cotton yarn prices in the Mumbai market did not see significant movement in the past few days, though there were gains last week due to rising cotton prices. A trader from the Mumbai market told Fibre2Fashion, "There is very slow demand for fabric from the garment industry. The demand side remains weak, but yarn received support last week from rising raw material prices. Cotton prices were increasing in both global and local markets."

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,440-1,500 (approximately $17.19-$17.91) and ₹1,320-1,420 per 5 kg (approximately $15.76-$16.96) (excluding GST), respectively. Other prices include 60 combed warp at ₹328-336 (approximately $3.92-$4.01) per kg, 80 carded weft at ₹1,380-1,420 (approximately $16.48-$16.96) per 4.5 kg, 44/46 carded warp at ₹255-265 (approximately $3.04-$3.16) per kg, 40/41 carded warp at ₹254-264 (approximately $3.03-$3.15) per kg and 40/41 combed warp at ₹290-295 (approximately $3.46-3.52) per kg, according to trade sources.

The Tiruppur market also experienced stability in cotton yarn prices, as demand from the downstream industry remained sluggish. According to trade sources, spinning mills and traders are struggling to maintain cotton yarn prices at current levels. A sharp rise in ICE cotton prices has raised hopes for better demand across the textile value chain.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹268-276 (approximately $3.20-3.30) per kg (excluding GST), 34 count combed cotton yarn at ₹277-284 (approximately $3.31-3.39) per kg, 40 count combed cotton yarn at ₹290-296 (approximately $3.46-3.53) per kg, 30 count carded cotton yarn at ₹242-249 (approximately $2.89-2.97) per kg, 34 count carded cotton yarn at ₹251-255 (approximately $3.00-3.04) per kg and 40 count carded cotton yarn at ₹255-262 (approximately $3.00-3.13) per kg.

In Gujarat, cotton prices remained range-bound, with spinning mills regularly purchasing cotton. Prices showed little movement over the past few days, despite higher ICE cotton prices yesterday. Traders noted that domestic cotton is likely to receive support from the global market. However, the slow demand from the garment industry continues to dampen the cotton market.

All-India cotton arrivals were estimated at no more than 7,000-8,000 bales of 170 kg each. The benchmark Shankar-6 cotton was quoted between ₹59,500-59,800 (approximately $710.46-$714.04) per candy of 356 kg, while southern mills were looking to buy cotton at ₹60,000-60,500 (approximately $716.43-$722.40) 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)

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