South Indian cotton yarn faces headwind, but prices remain stable

Power looms and auto looms are now facing a labour shortage as workers return to their native places during summer. Traders said cotton prices are bullish due to limited availability, but yarn demand remains sluggish. If cotton yarn demand improves in the coming weeks, prices may rise sharply.

In the Mumbai market, demand for cotton yarn weakened due to labour shortages, which have curtailed fabric production in power and auto looms. This has also led to reduced cotton yarn consumption in the downstream industry. A trader from the Mumbai market told Fibre2Fashion, “Fabric demand from the garment industry is being met through existing stocks. Power and auto looms have reduced fabric production, which has impacted cotton yarn demand. Sellers are offering discounts on current prices to attract potential buyers.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,420-1,445 (approximately $16.67-$16.97) and ₹1,360-1,400 per 5 kg (approximately $15.97-$16.44) (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-$17.14) 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.

Tiruppur market also witnessed weak demand from the consumer industry. Exporters remain uncertain about the status of current orders from US buyers, and new orders are delayed due to the tariff situation. There is significant uncertainty surrounding demand in the fabric and yarn markets. Market sources said that sentiment is unlikely to improve until there is more clarity, and demand picks up in the downstream industry. Domestic garment demand is insufficient to support cotton yarn prices.

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 $3.26-3.42) 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 $2.94-2.99) per kg.

In Gujarat, cotton prices remained stable over the past couple of days. Cotton trade activity was limited due to a shortage of stocks. Falling ICE cotton prices did not affect the domestic market as local factors dominated. Traders noted that buyers were searching for cotton, but availability was very limited among private traders. Meanwhile, the Cotton Corporation of India (CCI) is selling cotton at prices higher than the prevailing market rates, having procured a significant quantity at the government’s minimum support price (MSP).

Cotton arrivals were estimated at 6,000–7,000 bales (170 kg each) in Gujarat and 37,000–40,000 bales nationwide. Benchmark Shankar-6 cotton was quoted at ₹54,000–54,500 (approximately $633.99–$639.86) per candy (356 kg), while southern mills were willing to purchase at ₹55,000–55,500 (approximately $645.73–$651.60) 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)