Yarn prices stable in south Indian market despite stronger cotton

South Indian markets have experienced a subdued demand alongside stable cotton yarn prices. Both Mumbai and Tiruppur have observed minimal fluctuations in cotton yarn prices. The sector finds itself under dual pressures, with robust fibre prices contrasting with sluggish demand from the weaving industry.

 

South Indian markets, including Mumbai and Tiruppur, see stable cotton yarn prices amidst subdued demand. The sector faces challenges from high fibre prices and slow weaving industry demand. Buyers are cautious due to new payment rules, hindering market activity. Gujarat experiences rising cotton prices, driven by strong buying from MNCs and spinning mills.

Additionally, buyers are adopting a cautious stance due to their inability to meet payment obligations to micro and small enterprise suppliers, as mandated under the new payment rule. Traders express concerns that without government intervention, business activities could further decelerate in the remaining 45 days leading up to March 2024.

 

South Indian markets, including Mumbai and Tiruppur, see stable cotton yarn prices amidst subdued demand. The sector faces challenges from high fibre prices and slow weaving industry demand. Buyers are cautious due to new payment rules, hindering market activity. Gujarat experiences rising cotton prices, driven by strong buying from MNCs and spinning mills.

A trader from Mumbai told Fibre2Fashion, "Buyers were reluctant to make fresh purchases. They felt no compulsion to buy cotton yarn due to the slow movement in garment manufacturing. Additionally, the new payment rule has also dampened market sentiments."

 

South Indian markets, including Mumbai and Tiruppur, see stable cotton yarn prices amidst subdued demand. The sector faces challenges from high fibre prices and slow weaving industry demand. Buyers are cautious due to new payment rules, hindering market activity. Gujarat experiences rising cotton prices, driven by strong buying from MNCs and spinning mills.

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,425-1,450 and ₹1,310-1,380 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹318-325 per kg, 80 carded weft at ₹1,400-1,440 per 4.5 kg, 44/46 carded warp at ₹254-263 per kg, 40/41 carded warp at ₹242-248 per kg, 40/41 combed warp at ₹264-268 and 30/32 carded warp at ₹232-237 per kg, according to Fibre2Fashion's market insight tool TexPro.

 

South Indian markets, including Mumbai and Tiruppur, see stable cotton yarn prices amidst subdued demand. The sector faces challenges from high fibre prices and slow weaving industry demand. Buyers are cautious due to new payment rules, hindering market activity. Gujarat experiences rising cotton prices, driven by strong buying from MNCs and spinning mills.

Tiruppur market also noticed bearish tone with steady prices. A trader from Tiruppur market told F2F, “Demand may further slowdown after 15 February as buyers will not be able to pay to registered micro and small suppliers within 45 days in this fiscal as per new payment rule. Yarn market witnessed slightly improvement in January end but new rule disturbed market sentiments agains.”

 

South Indian markets, including Mumbai and Tiruppur, see stable cotton yarn prices amidst subdued demand. The sector faces challenges from high fibre prices and slow weaving industry demand. Buyers are cautious due to new payment rules, hindering market activity. Gujarat experiences rising cotton prices, driven by strong buying from MNCs and spinning mills.

In Tiruppur, cotton yarn prices were noted as: 30 count combed cotton yarn at ₹258-262 per kg (excluding GST), 34 count combed cotton yarn at ₹265-270 per kg, 40 count combed cotton yarn at ₹280-284 per kg, 30 count carded cotton yarn at ₹233-236 per kg, 34 count carded cotton yarn at ₹238-243 per kg and 40 count carded cotton yarn at ₹247-251 per kg, as per TexPro.

 

South Indian markets, including Mumbai and Tiruppur, see stable cotton yarn prices amidst subdued demand. The sector faces challenges from high fibre prices and slow weaving industry demand. Buyers are cautious due to new payment rules, hindering market activity. Gujarat experiences rising cotton prices, driven by strong buying from MNCs and spinning mills.

Strong buying from MNCs and spinning mills has further driven cotton prices in the Gujarat market. Prices have increased by ₹400-500 per candy of 356 kg in the last couple of days, despite good arrivals in Gujarat and across the country. According to trade sources, MNCs, spinning mills, and stockists have been actively booking more cotton as they believe this will be the last opportunity in the season to purchase good quality cotton in sufficient quantities. They have increased their focus on Gujarat and Maharashtra due to lower quality in north India.

 

South Indian markets, including Mumbai and Tiruppur, see stable cotton yarn prices amidst subdued demand. The sector faces challenges from high fibre prices and slow weaving industry demand. Buyers are cautious due to new payment rules, hindering market activity. Gujarat experiences rising cotton prices, driven by strong buying from MNCs and spinning mills.

The benchmark Shankar-6 cotton was quoted between ₹55,800-56,000 per candy of 356 kg, while southern mills intended to buy cotton at ₹55,600-56,200 per candy. Arrivals were estimated at 39,000-40,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 170,000-172,000 bales.

 

South Indian markets, including Mumbai and Tiruppur, see stable cotton yarn prices amidst subdued demand. The sector faces challenges from high fibre prices and slow weaving industry demand. Buyers are cautious due to new payment rules, hindering market activity. Gujarat experiences rising cotton prices, driven by strong buying from MNCs and spinning mills.