Spinning mills under pressure in south India, carded cotton yarn down

The Tiruppur market has witnessed a declining trend in cotton yarn prices due to poor demand from the weaving industry. Tamil Nadu-based MSME spinning mills are under pressure to sell cotton yarn at lower prices as they require liquidity for their operational needs before Diwali. A trader from Tiruppur told Fibre2Fashion, "Demand from the weaving industry and the export market has remained very weak. Mills have been offering higher discounts to attract buyers, and stockists and traders have also been compelled to reduce prices in the current weak market sentiment." 

The prices of carded cotton yarn came down in the Tiruppur market, but combed cotton yarn stayed at previous levels. The prices were noted as 30 count combed cotton yarn at ₹260-265 per kg (excluding GST), 34 count combed cotton yarn at ₹268-273 per kg, 40 count combed cotton yarn at ₹280-285 per kg, 30 count carded cotton yarn at ₹235-238 per kg, 34 count carded cotton yarn at ₹238-243 per kg and 40 count carded cotton yarn at ₹247-252 per kg , according to Fibre2Fashion's market insight tool TexPro. 

The Mumbai market has observed a steady trend in cotton yarn prices, but demand has not been supportive. Traders believe that cotton yarn prices in the market may decline. It will be challenging to maintain prices at their current level due to weak demand. A trader from Mumbai told Fibre2Fashion, "Power looms in Maharashtra and other regions are operating at reduced capacity due to poor demand for fabric from the garment industry. Festival demand has not been able to bolster the textile value chain." 

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,400-1,420 and ₹1,275-1,330 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp ₹315-322 per kg, 80 carded weft ₹1,380-1,420 per 4.5 kg, 44/46 carded warp ₹250-255 per kg, 40/41 carded warp ₹236-242 per kg, 40/41 combed warp ₹262-266 and 30/32 carded warp ₹225-230 per kg, as per TexPro. 

In the Gujarat market, cotton prices have recently declined by ₹300-500 per candy of 356 kg. This drop can be attributed to higher arrivals and limited purchases by spinning mills, thereby exerting pressure on ginning mills to lower their prices. Traders have noted that most ginning mills have commenced their operations during the auspicious period of Navratri. However, spinning mills have shown less interest in buying as they anticipate limited demand from the weaving industry. 

In the Gujarat market, the new season's Shankar-6 cotton was quoted at ₹57,200-57,500 per candy, while old cotton was priced around ₹58,000-58,300 per candy. The total arrival in Gujarat amounted to approximately 25,000 bales of 170 kg each, with an estimated nationwide arrival of 78,000-80,000 bales. 

ALCHEMPro News Desk (KUL)