South Indian cotton yarn market optimistic amid rising demand

Cotton yarn prices increased for a few counts and varieties due to higher domestic demand. A trader from Mumbai told Fibre2Fashion, "Local demand for cotton yarn was slightly higher, which supported market sentiment. Shipments to Bangladesh are also likely to resume very soon, which will attract buyers for new deals. However, the prolonged sluggish demand remains a concern for the entire textile value chain.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,380-1,430 (approximately $16.44-$17.04) and ₹1,320-1,380 per 5 kg (approximately $15.73-$16.44) (excluding GST), respectively. Other prices include 60 combed warp at ₹318-322 (approximately $3.79-$3.84) per kg, 80 carded weft at ₹1,350-1,390 (approximately $16.09-$16.56) per 4.5 kg, 44/46 carded warp at ₹250-266 (approximately $2.98-$3.17) per kg, 40/41 carded warp at ₹244-252 (approximately $2.91-$3.00) per kg and 40/41 combed warp at ₹278-283 (approximately $3.31-$3.37) per kg, according to trade sources.

The Tiruppur market witnessed average demand, and cotton yarn prices remained stable, except for a few counts and varieties, where prices declined slightly. The price of 30 carded cotton yarn eased by ₹2 per kg due to weak demand, but most other counts and varieties traded steadily. According to trade sources, the market did not see significant improvement in buying, but traders remain hopeful for better demand in the coming weeks. This optimism is based on the slow resumption of shipments to Bangladesh. A trader mentioned that Indian suppliers have begun shipping their previously booked consignments, and outbound shipments are expected to pick up in the coming weeks.

In Tiruppur, knitting cotton yarn prices were noted as: 30 count combed cotton yarn at ₹260-268 (approximately $3.10-3.19) per kg (excluding GST), 34 count combed cotton yarn at ₹272-277 (approximately $3.20-3.30) per kg, 40 count combed cotton yarn at ₹285-290 (approximately $3.40-3.46) per kg, 30 count carded cotton yarn at ₹235-242 (approximately $2.80-2.88) per kg, 34 count carded cotton yarn at ₹244-248 (approximately $2.91-2.96) per kg and 40 count carded cotton yarn at ₹248-254 (approximately $2.96-3.03) per kg.

In Gujarat, cotton prices remained stable despite significant fluctuations in ICE cotton. The natural fibre traded flat in the state amid limited activity. Market experts stated that while buyers were interested in purchasing cotton, there was a price mismatch between buyers' and sellers' expectations. Buyers expected lower prices due to slow demand from the downstream industry, and cotton arrivals remained negligible.

Cotton arrivals were recorded at 3,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 8,000-9,000 bales. The benchmark Shankar-6 cotton was quoted between ₹57,000-57,500 (approximately $679.18-$685.14) per candy of 356 kg, while southern mills were looking to buy cotton at ₹57,500-58,000 (approximately $685.14-$691.09) 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)