South Indian cotton yarn market sees demand surge amid stable prices

In south India, the market has observed enhanced demand from the weaving industry. Trade experts noted that buyers showed interest in purchasing cotton yarn yet were reluctant to pay higher prices. Spinning mills were more focused on increasing sales rather than margins. In Mumbai and Tiruppur markets, cotton yarn was traded at the previous price levels. Traders anticipate that demand will likely remain positive in the near future, although prices may stay at the current level for at least the month of December. 

The Mumbai market experienced stability in cotton yarn prices. Mills and stockists were able to sell larger quantities due to strong demand. A Mumbai trader told Fibre2Fashion, "Spinning mills faced challenges selling cotton yarn at elevated prices, leading them to focus on volume over profit margins." Demand from the downstream industry may decline in the latter half of December as market participants prepare for New Year celebrations. 

In Mumbai, 60 carded yarn of warp and weft varieties sold for ₹1,400-1,420 and ₹1,295-1,350 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹318-325 per kg, 80 carded weft at ₹1,400-1,440 per 4.5 kg, 44/46 carded warp at ₹254-263 per kg, 40/41 carded warp at ₹242-248 per kg, 40/41 combed warp at ₹262-266 and 30/32 carded warp at ₹230-235 per kg, according to Fibre2Fashion's market insight tool TexPro. 

The Tiruppur market also saw stable cotton yarn prices, with enhanced buying from the spinning industry due to optimistic future prospects. A Tiruppur trader told F2F, "Although cotton yarn prices remained stable, the market experienced confidence in robust demand. Foreign and domestic retailers and brands may increase their purchases next month due to dwindling stocks, having placed fewer orders in recent months amid economic concerns, particularly in the US and Europe." Cotton yarn is expected to see increased demand as summer manufacturing ramps up in the coming weeks. 

In Tiruppur market, cotton yarn prices were noted as 30 count combed cotton yarn at ₹258-262 per kg (excluding GST), 34 count combed cotton yarn at ₹268-273 per kg, 40 count combed cotton yarn at ₹280-284 per kg, 30 count carded cotton yarn at ₹233-236 per kg, 34 count carded cotton yarn at ₹237-242 per kg and 40 count carded cotton yarn at ₹240-246 per kg, as per TexPro. 

Cotton prices in Gujarat declined due to slower demand from spinning mills, easing by ₹200-300 per candy of 356 kg in the past few days. According to traders, mills were cautious about fresh purchases, unable to raise yarn prices, and thus hesitant to buy cotton at current levels. Stronger ICE cotton failed to uplift domestic market sentiments. 

In the Gujarat market, Shankar-6 cotton was quoted between ₹55,000-55,300 per candy of 356 kg. Southern mills showed interest in buying cotton at ₹55,500-55,800 per candy. Gujarat saw an arrival of 35,000 bales of 170 kg, with an all-India arrival estimated at 146,000-148,000 bales of 170 kg. 

ALCHEMPro News Desk (KUL)