South Indian cotton yarn steady, demand weak even as workers return

In the Mumbai market, cotton yarn demand was average to steady. Current demand is helping maintain price stability. However, the increased return of workers in the weaving industry has not translated into stronger demand. A trader from the Mumbai market told Fibre2Fashion, “Workers are returning to power looms and auto looms, but loom owners are not inclined to ramp up fabric production. Cotton yarn demand may not improve in the next couple of weeks. The market is unlikely to see improvement before mid-July.” Sustainable support for cotton yarn demand may only come from higher export orders. While upcoming domestic festivals may spur demand, the effect is expected to be short-lived.

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$16.12-$16.71) and ₹1,340-1,390 per 5 kg (~$15.65-16.24) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.683.75) per kg, 80 carded weft at ₹1,385-1,450 (~$16.18-$16.94) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.10-3.18) per kg, 40/41 carded warp at ₹248-255 (~$2.90-2.98) per kg and 40/41 combed warp at ₹268-272 (~$3.13-3.18) per kg, according to trade sources.

In Tiruppur, cotton yarn demand was also average, with limited buying for garment export orders. Spinning mills are unwilling to offer further discounts beyond the ₹8–12 per kg they are already providing, as higher discounts would put pressure on their margins. According to a trader in the Tiruppur market, cotton yarn buying remains very weak. Buyers are hesitant to place large orders, anticipating continued sluggish demand for fabric in the coming weeks.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.98-3.07) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (~$3.11-3.19) per kg, 40 count combed cotton yarn at ₹278-291 (~$3.25-3.40) per kg, 30 count carded cotton yarn at ₹236-241 (~$2.76-2.46) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.82-2.89) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.91-2.96) per kg.

In Gujarat, cotton prices remained stable over the past couple of days due to limited trade and reduced availability. While ICE cotton prices improved on Monday, they did not influence local prices. Traders reported limited demand from spinning mills, which are sourcing adequate cotton in the open market and through the Cotton Corporation of India (CCI). Larger companies prefer to purchase imported cotton, which is currently available at lower prices.

Cotton arrivals were estimated at 5,000–6,000 bales of 170 kg in Gujarat and 18,000–20,000 bales across the country. The benchmark Shankar-6 cotton was quoted at ₹53,700–54,000 (~$627.32–630.83) per candy of 356 kg, while southern mills were bidding at ₹54,800–55,000 (~$640.17–642.51) 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)