South Indian cotton yarn prices hold steady amid US tariff uncertainty

The Mumbai market witnessed stability in cotton yarn prices, as demand remained average. Prices had increased by ₹3-5 per kg last week. A trader from the Mumbai market told Fibre2Fashion, “Traders and buyers are waiting for clarity on the US tariff issue. Prices had risen last week due to local seasonal demand. Good trade was observed last week, which led to a rise in cotton yarn prices.” Power looms and auto looms are facing a shortage of workers as many are away on summer holidays.

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,420-1,445 (approximately $16.47-$16.76) and ₹1,360-1,400 per 5 kg (approximately $15.77-$16.23) (excluding GST), respectively. Other prices include 60 combed warp at ₹322-326 (approximately $3.73-$3.78) per kg, 80 carded weft at ₹1,400-1,460 (approximately $16.23-$16.93) per 4.5 kg, 44/46 carded warp at ₹270-275 (approximately $3.14-$3.19) per kg, 40/41 carded warp at ₹255-262 (approximately $2.96-$3.04) per kg and 40/41 combed warp at ₹272-275 (approximately $3.15-3.19) per kg, according to trade sources.

In Tiruppur, cotton yarn prices remained unchanged as market participants awaited clarity on the tariff issue. There were negative reports suggesting that US exporter orders had been put on hold. Renegotiations by US buyers may squeeze exporters’ margins. However, Indian exporters are expected to benefit as the US has imposed lower tariffs on Indian supplies. Cotton yarn prices remained range-bound despite a rise in mill rates last week.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹257-265 (approximately $2.98-3.07) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (approximately $3.08-3.17) per kg, 40 count combed cotton yarn at ₹278-291 (approximately $3.22-3.37) per kg, 30 count carded cotton yarn at ₹237-242 (approximately $2.75-2.81) per kg, 34 count carded cotton yarn at ₹242-247 (approximately $2.81-2.86) per kg and 40 count carded cotton yarn at ₹250-255 (approximately $2.90-2.96) per kg.

In Gujarat, cotton prices eased by ₹100-200 per candy of 356 kg due to negative factors. ICE cotton has declined over several sessions, except on Monday when the natural fibre was traded higher.

Traders stated that the Indian cotton market is facing demand uncertainty following the US tariff announcement. ICE cotton is mostly declining due to concerns over weaker demand from importers. However, higher selling rates from the Cotton Corporation of India (CCI) are supporting open market prices. CCI's cotton auction prices are around ₹2,000-2,500 per candy higher than open market rates. If India gains greater access for garments in the US market, cotton prices may rise.

Cotton arrivals were estimated at 5,000-6,000 bales of 170 kg in Gujarat and 58,000-60,000 bales across the country. The benchmark Shankar-6 cotton was quoted between ₹53,500-54,000 (approximately $620.40-$626.20) per candy of 356 kg, while southern mills were looking to buy cotton at ₹54,600-54,800 (approximately $633.16-$635.48) per candy. Seed cotton (kapas) was traded at around ₹7,480-7,550 (approximately $86.74-$87.55) 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)