South Indian cotton yarn demand weakens, prices hold steady

In Mumbai, weaker demand was reported from the consumer industry. Power looms and auto looms are operating at nearly half capacity, with a large number of workers having gone on leave. Fabric demand is currently being met from existing stocks, and there was no significant movement in cotton yarn prices.

A trader from the Mumbai market told Fibre2Fashion, “Summer season’s cotton textile demand is almost over. However, a few varieties of fabric have seen strong demand, leading to stock depletion. Looms are operational in Maharashtra and Gujarat but are running with limited capacity. Hopefully, the workforce will return by mid-June, which should boost fabric production.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,420-1,445 (approximately $16.66-$16.95) and ₹1,360-1,400 per 5 kg (approximately $15.96-$16.42) (excluding GST), respectively. Other prices include 60 combed warp at ₹322-326 (approximately $3.78-$3.83) per kg, 80 carded weft at ₹1,400-1,460 (approximately $16.44-$17.13) per 4.5 kg, 44/46 carded warp at ₹270-275 (approximately $3.17-$3.23) per kg, 40/41 carded warp at ₹255-262 (approximately $2.99-$3.08) per kg and 40/41 combed warp at ₹272-275 (approximately $3.19-3.22) per kg, according to trade sources.

The Tiruppur market also witnessed average demand from the downstream industry, with cotton yarn trading at previous price levels. Market sources reported that while cotton yarn demand was not strong, it was sufficient to maintain current prices. Various factors are hurting market sentiment, but local demand is helping cotton yarn prices remain steady. Exporters are eagerly awaiting the India–US bilateral trade agreement (BTA), as Indian exports may receive a boost if the agreement is finalised.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹257-265 (approximately $3.02-3.11) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (approximately $3.12-3.21) per kg, 40 count combed cotton yarn at ₹278-291 (approximately $3.26-3.41) per kg, 30 count carded cotton yarn at ₹237-242 (approximately $2.78-2.84) per kg, 34 count carded cotton yarn at ₹242-247 (approximately $2.84-2.90) per kg and 40 count carded cotton yarn at ₹250-255 (approximately $2.93-2.99) per kg.

In Gujarat, cotton prices remained stable amid thin trade. Trade sources reported that buyers are struggling to source supplies from private sellers and are therefore focusing on the Cotton Corporation of India’s (CCI) auction sales, although CCI is offering cotton at rates higher than the market. The market has seen a scarcity of cotton among private traders and ginners, as many did not purchase cotton during the peak arrival season due to price disparities caused by CCI's higher rates.

Cotton arrivals were estimated at 6,000–7,000 bales of 170 kg in Gujarat and 38,000–42,000 bales across the country. The benchmark Shankar-6 cotton was quoted between ₹54,000–54,500 (approximately $633.53–$639.39) per candy of 356 kg, while southern mills were looking to purchase cotton at ₹55,000–55,200 (approximately $645.26–$651.62) 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)