South Indian cotton yarn trade faces price stability amid mixed demand

In Mumbai, demand for cotton yarn was notably slow, as the garment industry is cautious about purchasing fabric. They are still receiving very limited orders from retailers and brands. A trader from Mumbai told Fibre2Fashion, "Sellers are trying to clear their stock by offering discounts at current prices. The market may continue to see lower buying from power loom owners as fabric prices are under pressure.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,375-1,420 (approximately $16.46-$17.01) and ₹1,270-1,320 per 5 kg (approximately $15.21-$15.81) (excluding GST), respectively. Other prices include 60 combed warp at ₹322-327 (approximately $3.86-$3.92) per kg, 80 carded weft at ₹1,300-1,340 (approximately $15.57-$16.05) per 4.5 kg, 44/46 carded warp at ₹260-267 (approximately $3.11-$3.20) per kg, 40/41 carded warp at ₹247-255 (approximately $2.96-$3.05) per kg and 40/41 combed warp at ₹280-283 (approximately $3.35-$3.39) per kg, according to trade sources.

The Tiruppur market noted a slight improvement in demand from the weaving industry. However, overall sentiments in the cotton yarn trade remain weak. Trade sources mentioned that exporters are facing shipment problems due to a scarcity of shipping containers, leading to financial constraints as their consignments are stuck. This situation is dampening the market sentiment for cotton yarn.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹264-270 (approximately $3.16-3.23) per kg (excluding GST), 34 count combed cotton yarn at ₹274-279 (approximately $3.28-3.34) per kg, 40 count combed cotton yarn at ₹285-290 (approximately $3.41-3.37) per kg, 30 count carded cotton yarn at ₹239-246 (approximately $2.86-2.95) per kg, 34 count carded cotton yarn at ₹244-249 (approximately $2.92-2.98) per kg and 40 count carded cotton yarn at ₹249-255 (approximately $2.98-3.05) per kg.

In Gujarat, cotton trading remained steady amid limited arrivals. Cotton arrivals have further slowed down as the cotton season is coming to an end. According to trade sources, mills are looking to buy cotton but are price-conscious due to weak demand from the clothing industry. Ginners, MNCs, and stockists expect prices to rise, but slow demand from the downstream industry is a negative factor.

Cotton arrivals were recorded at 5,000-6,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 15,000-17,000 bales. The benchmark Shankar-6 cotton was quoted between ₹57,700-58,200 (approximately $691.96-$697.94) per candy of 356 kg, while southern mills were looking to buy cotton at ₹58,500-59,000 (approximately $700.34-$706.32) 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)