South Indian cotton yarn prices stable amid rising demand

In the Mumbai market, cotton yarn prices saw stability, with most counts and varieties trading at previous levels. A trader from the Mumbai market told Fibre2Fashion, “Seasonal demand is slowly picking up. Cotton prices are fluctuating within a narrow range of ₹1-2 per kg. Traders and stockists are shifting to cotton yarn as they have been facing a bearish tone in the polyester-cotton yarn market for a long time.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,430-1,470 (approximately $16.68-$17.15) and ₹1,380-1,430 per 5 kg (approximately $16.10-$16.68) (excluding GST), respectively. Other prices include 60 combed warp at ₹335-342 (approximately $3.91-$3.99) per kg, 80 carded weft at ₹1,410-1,470 (approximately $16.45-$17.15) per 4.5 kg, 44/46 carded warp at ₹260-269 (approximately $3.03-$3.14) per kg, 40/41 carded warp at ₹254-264 (approximately $2.96-$3.08) per kg and 40/41 combed warp at ₹286-291 (approximately $3.33-3.39) per kg, according to trade sources.

The Tiruppur market also noticed stability in cotton yarn prices. Prices had risen by ₹1-2 per kg in certain counts and varieties last week. Market sources reported that although prices were stable, demand is increasing. Mills did not raise prices this month but may reduce discounts to attract buyers. A stronger dollar against the INR also supported cotton yarn prices.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (approximately $2.97-3.07) per kg (excluding GST), 34 count combed cotton yarn at ₹264-271 (approximately $3.08-3.16) per kg, 40 count combed cotton yarn at ₹276-288 (approximately $3.22-3.36) per kg, 30 count carded cotton yarn at ₹235-240 (approximately $2.74-2.80) per kg, 34 count carded cotton yarn at ₹240-245 (approximately $2.80-2.86) per kg and 40 count carded cotton yarn at ₹248-253 (approximately $2.89-2.95) per kg.

In Gujarat, cotton prices were steady despite a rise in seed cotton prices. Traders noted that cotton prices could not absorb the price rise of seed cotton as spinning mills were buying cautiously. Ginners had to raise seed cotton buying prices to compete with the Cotton Corporation of India (CCI), which is buying around 50-70 per cent of seed cotton at MSP. Consequently, the gap between the market price and MSP of seed cotton has narrowed in the last couple of days. Ginners are now receiving supplies from farmers and are more flexible in terms of quality specifications when accepting seed cotton. Cotton arrivals were estimated at 30,000-32,000 bales of 170 kg in Gujarat and 200,000-220,000 bales across the country.

The benchmark Shankar-6 cotton was quoted between ₹54,000-54,300 (approximately $629.92-$633.41) per candy of 356 kg, while southern mills were looking to buy cotton at ₹55,000-55,300 (approximately $641.58-$645.08) per candy. Seed cotton (Kapas) traded at around ₹7,500-7,600 (approximately $87.49-$88.65) 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)