South Indian cotton yarn faces pressure, eyes festive boost

In the Mumbai market, cotton yarn demand remained weak as the loom sector lacks confidence in fabric purchases from the garment industry. Despite this, cotton yarn prices remained stable. A trader from the Mumbai market told Fibre2Fashion, “Earlier, cotton yarn prices had shown some upward movement, but this could not be sustained due to weak demand. Now, cotton prices are also under pressure from heavy selling. However, the loom sector may ramp up production if festival-related demand for finished products improves in the coming weeks.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$15.95-16.53) and ₹1,340-1,390 per 5 kg (~$15.49-16.07) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.64-3.71) per kg, 80 carded weft at ₹1,385-1,450 (~$16.01-16.76) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.06-3.14) per kg, 40/41 carded warp at ₹248-255 (~$2.87-2.95) per kg and 40/41 combed warp at ₹268-272 (~$3.10-3.14) per kg, according to trade sources.

According to trade sources, spinning mills in Tamil Nadu and other southern states are under pressure due to weak cotton yarn offtake. The Tiruppur market witnessed steady cotton yarn prices as mills struggled to maintain current levels. Traders said export demand had not improved, as there has been no breakthrough in the India–US trade deal. The UK is a comparatively smaller market and cannot deliver the same sales volume; hence, the India–UK deal may offer only limited relief. US brands and retailers are buying garments with extra caution, anticipating possible higher tariffs at US ports. However, domestic festival demand is expected to provide much-needed support to the cotton yarn and textile value chain. The market anticipates some movement in the coming month.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.95-3.04) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (~$3-07-3.16) per kg, 40 count combed cotton yarn at ₹278-291 (~$3.21-3.36) per kg, 30 count carded cotton yarn at ₹236-241 (~$2.73-2.79) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.79-2.84) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.88-2.92) per kg.

In Gujarat, cotton prices remained stable, although selling pressure emerged from traders who had purchased cotton in the Cotton Corporation of India (CCI) auctions. The previous upward trend could not be sustained, as spinning mills are cautious about new purchases. Traders noted that while cotton prices have not declined, the upward movement has stalled. Those who booked cotton from the CCI on margin are now attempting to sell the stock before the delivery date.

Cotton arrivals reduced to around 14,000–15,000 bales of 170 kg, of which Gujarat accounted for 2,000–3,000 bales. The benchmark Shankar-6 cotton was quoted at ₹58,000–58,200 (~$670.37–672.68) per candy of 356 kg for stock cotton.

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)