South Indian cotton yarn prices stable amid sluggish demand, low trade

The Mumbai market witnessed stability in cotton yarn prices amidst weak demand from the weaving industry. A trader from Mumbai told Fibre2Fashion, "Spinning mills are feeling pressure due to slow buying from the weaving industry. They are unable to increase prices as buyers are discouraged by higher rates. The fabric market also noted weak sentiments." 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,425-1,450 and ₹1,310-1,380 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 ₹264-268 and 30/32 carded warp at ₹232-237 per kg, according to Fibre2Fashion's market insight tool TexPro. 

Cotton yarn prices remained flat in the Tiruppur market as well, with very limited buying from the weaving industry. The upcoming Pongal festival is causing slow buying, as production will halt in several units due to the long holiday taken by workers. However, after the festival, increased production activities may boost demand. A trader from Tiruppur told F2F, "Cotton yarn demand has not been very encouraging, but buying from the weaving industry has been regular, albeit in limited quantities. The second half of the current month may see a revival of demand when workers return to the factories." 

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 also exhibited stability in Gujarat, with spinning mills cautious about fresh buying of the natural fibre due to lower-than-expected demand from the downstream industry. Traders indicated that a payment crisis in the market is also deterring buying. 

In the Gujarat market, Shankar-6 cotton was quoted between ₹55,000-55,200 per candy of 356 kg, while southern mills intended to buy cotton at ₹55,700-56,200 per candy. The arrival in Gujarat was 36,000 bales of 170 kg, with all India arrivals estimated at 170,000-172,000 bales of 170 kg. 

ALCHEMPro News Desk (KUL)