South Indian cotton yarn prices steady; exporters gain from weak INR

The Tiruppur market saw slight relief from the falling rupee. Garment exporters benefitted from favourable rupee-denominated payments. The currency's weakness brought some optimism to the cotton yarn trade. A trader from Tiruppur told Fibre2Fashion, “There was no movement in cotton yarn prices in either direction. However, the weaker rupee was a boost to market sentiment. Cotton yarn demand was average, as the consumer industry is purchasing in line with regular consumption needs.”

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.94-3.04) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (~$3.07-3.15) per kg, 40 count combed cotton yarn at ₹278-291 (~$3.21-3.36) per kg, 30 count carded cotton yarn at ₹236-241 (~$2.72-2.78) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.78-2.84) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.87-2.92) per kg.

The Mumbai market reported below-average demand for cotton yarn. Although spinning mills are under pressure to sell stock, they are reluctant to lower prices. According to trade sources, cotton yarn prices remained stable amid weak buying interest. Demand for polyester-cotton and polyester yarn was slightly better, possibly due to a price gap that made non-cotton options more attractive to domestic buyers. Additionally, slow export demand for cotton garments remains a concern for yarn traders.

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$15.93-16.51) and ₹1,340-1,390 per 5 kg (~$15.47-16.05) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.64-3.71) per kg, 80 carded weft at ₹1,385-1,450 (~$15.99-16.74) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.06-3.15) per kg, 40/41 carded warp at ₹248-255 (~$2.86-2.94) per kg and 40/41 combed warp at ₹268-272 (~$3.09-3.14) per kg, according to trade sources.

Cotton trade in Gujarat’s open market was minimal, and prices remained steady in the central Indian state. According to market sources, private ginners and stockists hold limited stock this season. Ginners were not finding profitability in ginning as the Cotton Corporation of India (CCI) was procuring seed cotton at minimum support prices (MSP) higher than prevailing market rates. Weak demand from the textile industry also prompted the CCI to reduce its cotton prices.

Cotton arrivals were estimated at 5,000–6,000 bales (170 kg each) in Gujarat and 18,000–20,000 bales across India. The benchmark Shankar-6 cotton was quoted at ₹53,700–54,000 (~$619.94–623.41) per candy of 356 kg, while southern mills were bidding at ₹54,800–55,000 (~$632.64–634.95) per candy.

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)