South Indian cotton yarn prices steady amid limited buying

In the Mumbai market, cotton yarn prices were stable amidst slow demand. Power looms are operating at partial capacity as they remain cautious about accumulating fabric stocks. A trader from the Mumbai market told Fibre2Fashion, “Summer garment production activities are still slow. Moreover, stockists and traders are avoiding offering credit facilities to buyers due to squeezed margins. Therefore, buyers have fewer attractive deals for purchasing cotton yarn.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold before Diwali at ₹1,420-1,460 (approximately $16.82-$17.29) and ₹1,360-1,400 per 5 kg (approximately $16.11-$16.58) (excluding GST), respectively. Other prices include 60 combed warp at ₹332-339 (approximately $3.93-$4.02) per kg, 80 carded weft at ₹1,390-1,460 (approximately $16.46-$17.29) per 4.5 kg, 44/46 carded warp at ₹257-266 (approximately $3.04-$3.15) per kg, 40/41 carded warp at ₹251-260 (approximately $2.97-$3.08) per kg and 40/41 combed warp at ₹280-288 (approximately $3.32-3.41) per kg, according to trade sources.

The Tiruppur market also experienced stability in cotton yarn prices due to weak demand. Consumer industries are cautious about fresh buying as they do not want to build up large stocks. A trader from the market noted that the market is primarily lacking export demand for yarn. Local demand remains limited ahead of the summer season but is expected to improve in the coming weeks.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹261-268 (approximately $3.09-3.17) per kg (excluding GST), 34 count combed cotton yarn at ₹270-277 (approximately $3.20-3.28) per kg, 40 count combed cotton yarn at ₹282-292 (approximately $3.34-3.56) per kg, 30 count carded cotton yarn at ₹237-242 (approximately $2.81-2.87) per kg, 34 count carded cotton yarn at ₹242-247 (approximately $2.87-2.93) per kg and 40 count carded cotton yarn at ₹250-255 (approximately $2.96-3.02) per kg.

In Gujarat, cotton prices eased further by ₹700 per candy of 356 kg over the past couple of days. Spinning mills were cautious about new purchases following the decline in seed cotton prices. They anticipate further reductions in cotton prices in the coming days. According to traders, farmers have reduced seed cotton sales after prices fell closer to the minimum support price (MSP). Lower arrivals of seed cotton may lead to a rebound in prices. Cotton arrivals were estimated at 27,000-32,000 bales of 170 kg in Gujarat and 153,000 bales across the country.

The benchmark Shankar-6 cotton was quoted at ₹53,700-54,000 (approximately $636.03-$639.58) per candy of 356 kg, while southern mills were seeking to purchase cotton at ₹54,500-54,700 (approximately $645.50-$647.87) per candy. Seed cotton (kapas) was traded at around ₹7,450-7,550 (approximately $88.24-$89.42) 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)