South Indian cotton yarn prices remain stable as headwinds persist

The Mumbai market experienced a brief surge in demand earlier this week. However, demand weakened over the last couple of days, forcing mills to sell their production at previous rates. They could not pass on the increased cotton prices. A trader from the Mumbai market told Fibre2Fashion, “A brief spurt in cotton yarn demand from the garment industry provided much-needed relief to fabric and yarn manufacturers. But the demand could not sustain, and pressure increased on stockists and mills. The shift in cotton yarn demand towards polyester fibre may also be contributing to the slowdown.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$16.09-$16.68) and ₹1,340-1,390 per 5 kg (~$15.53-16.21) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.67-3.74) per kg, 80 carded weft at ₹1,385-1,450 (~$16.15-16.91) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.09-3.17) per kg, 40/41 carded warp at ₹248-255 (~$2.89-2.97) per kg and 40/41 combed warp at ₹268-272 (~$3.13-3.17) per kg, according to trade sources.

The Tiruppur market also witnessed sluggish demand for cotton yarn. Buyers were cautious about fresh purchases due to a lack of confidence in downstream products like fabric and garments. Traders said mills were unable to raise their selling rates as the market was not supportive. If cotton prices continue to rise in the coming weeks, mills’ production costs will increase, prompting them to reduce discounts for potential buyers. Prolonged negotiations over the India–US trade deal have also created an atmosphere of uncertainty. US buyers are being very selective and cautious in placing garment import orders.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.97-3.07) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (~$3.10-3.18) per kg, 40 count combed cotton yarn at ₹278-291 (~$3.24-3.39) per kg, 30 count carded cotton yarn at ₹236-241 (~$2.75-2.81) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.81-2.87) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.90-2.95) per kg.

In Gujarat, cotton prices steadied after rising earlier this week. Traders said the upward momentum in prices paused due to a lack of support from the downstream industry. They noted that private traders and ginning mills were following the price policy of the Cotton Corporation of India (CCI). The government trading company also fixed its cotton auction prices at previous levels, indicating mild demand from the consumer industry. According to market sources, spinning mills are quoting lower prices due to weakness in the downstream sector, but traders and ginners are continuing to sell at their quoted prices.

Cotton arrivals dropped to around 14,000–15,000 bales of 170 kg, with Gujarat accounting for 2,000–3,000 bales. The benchmark Shankar-6 cotton was quoted at ₹58,000–58,200 (~$676.35–678.68) per candy of 356 kg for stock cotton.

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)