South Indian cotton yarn sees stronger sentiments, prices up in Mumbai

However, the Mumbai market also witnessed a declining trend in cotton yarn prices. Prices fell by ₹5–7 per kg for a few counts and varieties of cotton yarn. Sluggish demand from the downstream industry has driven prices down over the past couple of days, as the market grapples with a payment crisis. A trader from the Mumbai market told Fibre2Fashion, “Payment conditions are not expected to improve until the end of this month. Buyers have ignored the recent increase in cotton fibre prices. They may return to the market next month.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,410 (approximately $16.05-$16.39) and ₹1,320-1,360 per 5 kg (approximately $15.35-$15.81) (excluding GST), respectively. Other prices include 60 combed warp at ₹316-320 (approximately $3.67-$3.72) per kg, 80 carded weft at ₹1,360-1,420 (approximately $15.81-$16.51) per 4.5 kg, 44/46 carded warp at ₹263-268 (approximately $3.06-$3.12) per kg, 40/41 carded warp at ₹252-258 (approximately $2.93-$3.00) per kg and 40/41 combed warp at ₹268-272 (approximately $3.12-3.16) per kg, according to trade sources.

Meanwhile, the Tiruppur market saw stable cotton yarn prices, though demand from the downstream industry has improved since last week. According to market sources, spinning mills in Gujarat have bookings for the next month, indicating increased buying activity from the weaving industry. As the last month of the current 2024–25 fiscal has fewer days, there are signs of higher consumer lifting. The market had been facing prolonged bearish sentiment due to the payment crisis and the annual financial year closing.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (approximately $2.96-3.06) per kg (excluding GST), 34 count combed cotton yarn at ₹264-271 (approximately $3.07-3.15) per kg, 40 count combed cotton yarn at ₹276-288 (approximately $3.21-3.35) per kg, 30 count carded cotton yarn at ₹235-240 (approximately $2.73-2.79) per kg, 34 count carded cotton yarn at ₹240-245 (approximately $2.79-2.85) per kg and 40 count carded cotton yarn at ₹248-253 (approximately $2.88-2.94) per kg.

In Gujarat, cotton prices further increased by ₹300–500 per candy (356 kg) due to limited availability compared to demand. Weaker ICE cotton could not curb the price rise in the domestic market. Traders stated that the Cotton Corporation of India (CCI) has already purchased one crore bales of cotton at the current MSP. There was strong demand for both seed cotton and ginned cotton across the market. Optimism in the downstream industry has also raised hopes for higher purchases in the coming weeks.

Cotton arrivals were estimated at 10,000–12,000 bales (170 kg each) in Gujarat and 75,000–78,000 bales nationwide. The benchmark Shankar-6 cotton was quoted between ₹54,000–54,200 (approximately $627.87–$630.19) per candy (356 kg), while southern mills were looking to buy cotton at ₹54,800–55,000 (approximately $637.17–$639.49) per candy. Seed cotton (kapas) was traded at around ₹7,480–7,550 (approximately $86.97–$87.79) 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)