South India yarn struggles amid tariff uncertainty, rising fibre costs

The Tiruppur market witnessed stable cotton yarn prices. However, mills have reduced discounts to raise their selling rates and offset the increased cost of cotton. Cotton prices surged due to higher buying by spinning mills under the Cotton Corporation of India auction sales. A trader from the Tiruppur market told Fibre2Fashion, “Buyers are very cautious about purchasing cotton yarn as they are unsure of strong demand from the downstream industry. In fact, uncertainty surrounding US tariffs in the near future has discouraged not only foreign garment buyers but also consumer industries. Nevertheless, spinning mills are cutting discounts on cotton yarn prices following the rise in raw material costs.”

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.99-3.08) 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 ₹236-241 (~$2.77-2.82) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.82-2.88) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.92-2.96) per kg.

Cotton yarn was quoted higher in the Mumbai market, but sales remained weak at elevated prices. Trade sources said mills have increased their selling rates, but they are receiving a lukewarm response from buyers. Most buyers have postponed their purchases, awaiting clarity on US tariffs. If the trade deal fails to materialise, cotton yarn prices may decline.

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$16.17-$16.76) and ₹1,340-1,390 per 5 kg (~$15.70-$16.29) (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 (~$16.23-$16.99) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.10-$3.19) per kg, 40/41 carded warp at ₹248-255 (~$2.91-$2.99) per kg and 40/41 combed warp at ₹268-272 (~$3.14-3.19) per kg, according to trade sources.

In Gujarat, cotton prices remained steady after rising earlier this week. Weakness in ICE cotton futures has discouraged buyers in the local market. Spinning mills have reduced cotton procurement ahead of a key policy decision on US tariffs. According to market sources, declining arrivals and negligible stock with private traders and ginners are positive signs. However, lower buying across the textile value chain is dampening sentiment in the cotton market.

The benchmark Shankar-6 cotton was quoted at ₹54,000–54,500 (~$632.71–638.57) per candy of 356 kg for running supply and ₹55,000–55,200 (~$644.43–646.78) per candy of 356 kg for stock cotton. Southern mills were bidding at ₹55,500–56,000 (~$650.29-656.15) 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)