South India cotton yarn faces slow demand, mixed trend in prices

In the Mumbai market, cotton yarn prices remained stable. Traders believe the current weakness in cotton yarn is temporary. Power looms and auto looms are currently focused on delivering finished goods to clients but are expected to resume production and cotton yarn buying soon. However, the impact of happenings in Bangladesh on the cotton yarn market remains a cause for concern.

The Mumbai market witnessed stability in cotton yarn prices as the fabric industry remains focused on delivering finished goods to clients. However, challenges in fabric supply to Bangladesh pose a more serious issue. Reports indicate that Indian exporters are facing difficulties in supplying fabric and receiving payments from Bangladeshi buyers.

A trader from the Mumbai market told Fibre2Fashion, “Domestic demand will revive soon, and overall demand is expected to remain strong for the summer season. However, the real problem lies with Bangladesh, where exporters are encountering issues in supplying goods to the neighbouring country.”

In Mumbai, 60-carded yarn of warp and weft varieties were sold before Diwali at ₹1,440-1,480 (approximately $17.04-$17.51) and ₹1,380-1,430 per 5 kg (approximately $16.33-$16.92) (excluding GST), respectively. Other prices include 60 combed warp at ₹336-343 (approximately $3.98-$4.06) per kg, 80-carded weft at ₹1,410-1,480 (approximately $16.69-$17.51) per 4.5 kg, 44/46-carded warp at ₹260-270 (approximately $3.08-$3.20) per kg, 40/41-carded warp at ₹255-264 (approximately $3.02-$3.12) per kg and 40/41 combed warp at ₹285-292 (approximately $3.37-3.46) per kg, according to trade sources.

In Tiruppur, knitting cotton yarn prices exhibited a mixed trend. Comber yarn prices eased by ₹2-3 per kg over the past week, while carded cotton yarn prices remained steady. Traders said that if demand does not improve in the coming days, mills may be forced to reduce their selling rates. However, carded yarn remained stable due to comparatively better demand from the consumer industry.

In Tiruppur, knitting cotton yarn prices were noted as: 30 count combed cotton yarn at ₹257-265 (approximately $3.03-3.13) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (approximately $3.14-3.22) per kg, 40 count combed cotton yarn at ₹277-287 (approximately $3.27-3.39) per kg, 30 count carded cotton yarn at ₹236-241 (approximately $2.79-2.85) per kg, 34 count carded cotton yarn at ₹241-243 (approximately $2.74-2.88) per kg, and 40 count carded cotton yarn at ₹249-254 (approximately $2.95-3.01) per kg.

In Gujarat, cotton prices declined by ₹300-400 per candy of 356 kg over the past week but stabilised in the last couple of days. The natural fibre saw a dip at the beginning of the current week due to a slowdown in ICE cotton, which influenced the domestic market. Traders said that ginners are currently stocking cotton as they do not anticipate further price drops. Continued buying by the Cotton Corporation of India (CCI) is also supporting market sentiment. Cotton arrivals were estimated at 30,000-32,000 bales of 170 kg in Gujarat and 190,000-200,000 bales across the country.

The benchmark Shankar-6 cotton was quoted between ₹54,000-54,300 (approximately $637.69-$641.23) per candy of 356 kg, while southern mills were looking to buy cotton at ₹54,600-55,000 (approximately $644.78-$649.50) per candy. Seed cotton (Kapas) was traded at around ₹7,400-7,500 (approximately $87.39-$88.57) per quintal.

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.

Fibre2Fashion News Desk (KUL)