South Indian yarn market holds firm, eyes domestic demand uptick

Although cotton yarn prices remained unchanged in the Tiruppur market, there was a noticeable increase in trading discounts and lower deal rates. Stockists and millers faced pressure to clear their inventories. A trader from the Tiruppur market told Fibre2Fashion, “Sellers are being forced to offer higher discounts to attract potential buyers. Domestic demand may improve in the coming weeks, but it will not be enough to revive market sentiment. Cotton yarn demand typically slows down in the domestic market after summer, making export orders for garments and other textile products more critical.”

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 (~$2.76-2.81) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.81-2.87) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.91-2.95) per kg.

In Mumbai, demand was weaker, primarily due to reduced operations in power and auto looms. Muslim workers are on leave for Bakra-Eid and are expected to return to work next week. According to a Mumbai-based trader, sellers are struggling to maintain current price levels due to lacklustre fabric demand. Cotton yarn demand may only find sustainable support if export orders increase. While domestic festival demand may offer some relief, it is likely to be temporary.

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$16.11-16.70) and ₹1,340-1,390 per 5 kg (~$15.65-16.23) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.68-3.75) per kg, 80 carded weft at ₹1,385-1,450 (~$16.17-16.93) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.08-3.18) 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 Gujarat, cotton prices eased by ₹200–300 per candy (356 kg), as spinning mills were inactive in making fresh deals. Softness in ICE cotton futures also discouraged buying in the western Indian state. Traders said that demand remained weak despite the off-season for arrivals. Spinning mills are cautious with new purchases as they are not optimistic about downstream product demand such as fabric and garments. However, mills are not concerned about raw material availability in the coming months, given their assured stocks with the Cotton Corporation of India (CCI).

Cotton arrivals were estimated at 6,000–7,000 bales (170 kg each) in Gujarat and 19,000–20,000 bales across the country. The benchmark Shankar-6 cotton was quoted at ₹53,700–54,000 (~$627.06–630.57) per candy, while southern mills were bidding at ₹54,800–55,000 (~$639.91–642.24) 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)