Stable cotton yarn prices in south India reflect margin pressures

In Mumbai, cotton yarn demand is waning, though prices for most counts and varieties have remained stable. Mills have attempted to raise yarn prices, but weaker demand has prevented any such increase. A Maharashtra-based trader speaking to Fibre2Fashion said, "The likelihood of a boost from festival demand is slim. While some demand may emerge in the run-up to upcoming festivals, large stockpiles will prevent prices from rising. Additionally, subdued export demand means the market is unlikely to find support until this aspect improves." 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,460-1,480 and ₹1,350-1,380 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹322-328 per kg, 80 carded weft at ₹1,340-1,380 per 4.5 kg, 44/46 carded warp at ₹260-265 per kg, 40/41 carded warp at ₹240-245 per kg and 40/41 combed warp at ₹265-270 per kg, according to Fibre2Fashion's market insight tool TexPro.

In Tiruppur, cotton yarn prices have stabilised despite diminished demand from the weaving industry. Spinners are confronting reduced profit margins due to elevated cotton costs. Speaking to Fibre2Fashion, a Tiruppur-based trader said, "Cotton yarn prices have remained steady. Demand from the weaving sector continues to be weak. Spinners are doing their best to maintain prices, but the high cost of cotton is adding to their burden." 

Prices in the Tiruppur market were noted as 30 count combed cotton yarn at ₹263-268 per kg (excluding GST), 34 count combed cotton yarn at ₹271-276 per kg, 40 count combed cotton yarn at ₹282-287 per kg, 30 count carded cotton yarn at ₹238-243 per kg, 34 count carded cotton yarn at ₹242-247 per kg and 40 count carded cotton yarn at ₹250-255 per kg, as per TexPro. 

In Gujarat, cotton prices have stabilised following fluctuations in the previous trading session. Traders report that prices initially rose after a continuous decline, influenced by volatile ICE cotton. Mills are purchasing cotton for restocking in the new season but are proceeding cautiously due to weak demand across the textile value chain. In the Gujarat market, Shankar-6 cotton was quoted between ₹60,400-60,700 per candy. Approximately 12,000 bales of 170 kg each arrived in Gujarat, with all-India arrivals estimated at 33,000-34,000 bales. 

ALCHEMPro News Desk (KUL)