South Indian cotton yarn market struggles amid sluggish monsoon demand

The Mumbai market saw stable cotton yarn prices amid subdued demand. Spinning mills and stockists are struggling to find potential buyers. A trader from the Mumbai market told Fibre2Fashion, “Typically, fabric production gains momentum from June to August, driven by export orders and the approaching festive season, which encourages loom owners to increase output. Cotton yarn demand also usually picks up despite the seasonal dip in cotton garment sales after summer. But this year, cotton yarn demand remains very weak, while polyester yarn is in high demand for this time of year.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$16.00-16.58) and ₹1,340-1,390 per 5 kg (~$15.54-16.12) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.65-3.72) per kg, 80 carded weft at ₹1,385-1,450 (~$16.06-16.81) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.07-3.15) per kg, 40/41 carded warp at ₹248-255 (~$2.88-2.96) per kg and 40/41 combed warp at ₹268-272 (~$3.11-3.15) per kg, according to trade sources.

Spinning mills in Tamil Nadu are also struggling to secure buyers and are being forced to offer higher discounts to attract orders, as the entire textile value chain faces uncertainty. The Tiruppur market reported stable cotton yarn prices. Trade sources noted that local demand is increasingly shifting towards polyester yarn and other low-cost fibres. Garment export orders are also limited due to US tariff issues and other international factors that are deterring foreign buyers. The global market remains uncertain about strong garment sales in the upcoming winter season.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.96-3.05) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (~$3.08-3.17) per kg, 40 count combed cotton yarn at ₹278-291 (~$3.22-3.37) per kg, 30 count carded cotton yarn at ₹236-241 (~$2.74-2.79) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.79-2.85) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.89-2.93) per kg.

A similar trend was observed in Gujarat’s cotton trade. Prices of the natural fibre remained range-bound amid weak demand. Current market dynamics are also discouraging spinners from purchasing cotton. According to sources, the Cotton Corporation of India (CCI) has reduced its sale price due to lower demand. Multinational companies (MNCs) are also unable to sell their stocks at higher prices. The reluctance of spinning mills is contributing to negative market sentiment.

Cotton arrivals were estimated at 5,000–6,000 bales of 170 kg in Gujarat and 18,000–20,000 bales nationwide. Benchmark Shankar-6 cotton was quoted at ₹53,700–54,000 (~$622.58–626.06) per candy of 356 kg, while southern mills were bidding at ₹54,800–55,000 (~$635.36–637.66) 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)