South Indian cotton yarn faces sluggish demand, prices drop in Mumbai

Mumbai saw a decline of ₹2-3 per kg across various counts and varieties of cotton yarn. Spinning mills and stockists are offering lower prices to attract potential buyers. A trader from the Mumbai market told Fibre2Fashion, “Cotton yarn demand has further reduced as power looms and auto looms will face a labour shortage due to the forthcoming Ramadan month. In the absence of workers, loom owners will have to reduce fabric production in the coming weeks. The cotton yarn trade is already facing payment constraints. Annual closing will also divert focus from production and the purchase of raw materials.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,420-1,450 (approximately $16.23-$16.57) and ₹1,310-1,350 per 5 kg (approximately $14.97-$15.43) (excluding GST), respectively. Other prices include 60 combed warp at ₹314-318 (approximately $3.59-$3.63) per kg, 80 carded weft at ₹1,420-1,480 (approximately $16.23-$16.92) per 4.5 kg, 44/46 carded warp at ₹263-268 (approximately $3.01-$3.06) per kg, 40/41 carded warp at ₹250-255 (approximately $2.86-$2.91) per kg and 40/41 combed warp at ₹266-270 (approximately $3.04-3.09) per kg, according to trade sources.

However, cotton yarn prices remained stable in Tiruppur. The market was also experiencing slow demand from the fabric industry, but mills are trying to maintain prices at current levels. According to market sources, the cotton yarn trade remained bearish as export demand was not supportive. The higher price of Indian cotton makes textile products unviable in the global market. Domestic production capacity is significantly higher than domestic demand, which cannot be sustained without support from international demand.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (approximately $2.91-3.01) per kg (excluding GST), 34 count combed cotton yarn at ₹264-271 (approximately $3.02-3.10) per kg, 40 count combed cotton yarn at ₹276-288 (approximately $3.15-3.29) per kg, 30 count carded cotton yarn at ₹235-240 (approximately $2.69-2.74) per kg, 34 count carded cotton yarn at ₹240-245 (approximately $2.74-2.80) per kg and 40 count carded cotton yarn at ₹248-253 (approximately $2.83-2.89) per kg.

In Gujarat, cotton prices slipped by ₹300-500 per candy of 356 kg. Slow demand and a payment crisis dragged down cotton prices in the state. Traders reported that spinning mills are cautious about fresh buying due to liquidity issues. Ginning mills are reluctant to purchase seed cotton at prices higher than the minimum support price (MSP), as they have already built limited stocks for the coming months. The Cotton Corporation of India (CCI) is purchasing seed cotton from farmers at MSP.

Cotton arrivals were estimated at 14,000-16,000 bales of 170 kg in Gujarat and 95,000-105,000 bales across the country. The benchmark Shankar-6 cotton was quoted between ₹53,000-53,500 (approximately $605.77-$611.48) per candy of 356 kg, while southern mills were looking to buy cotton at ₹54,000-54,500 (approximately $617.20-$622.91) per candy. Seed cotton (Kapas) was traded at around ₹7,500-7,575 (approximately $85.72-$86.58) per quintal.

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)