South India cotton yarn prices tumble amid geopolitical tensions

In the Mumbai market, prices fell by ₹2-5 per kg across various counts and varieties of cotton yarn. A trader informed Fibre2Fashion, "The market did not receive any positive signals from buyers. They avoided new purchases, anticipating further reductions in cotton yarn prices. Fabric manufacturers preferred to wait and see how the geopolitical situation would evolve."

In Mumbai, 60-carded yarn of warp and weft varieties were sold at ₹1,460-1,500 (approximately $17.47-$17.95) and ₹1,380-1,440 per 5 kg (approximately $16.51-$17.23) (excluding GST), respectively. Other prices include 60 combed warp at ₹337-342 (approximately $4.03-$4.09) per kg, 80-carded weft at ₹1,460-1,500 (approximately $17.47-$17.95) per 4.5 kg, 44/46-carded warp at ₹262-270 (approximately $3.18-$3.23) per kg, 40/41-carded warp at ₹265-270 (approximately $3.17-$3.23) per kg, 40/41 combed warp at ₹296-302 (approximately $3.54-$3.61) per kg, and 30/32-carded warp at ₹252-257 (approximately $3.02-$3.08) per kg, according to Fibre2Fashion's market insight tool TexPro.

The Tiruppur market also witnessed a decrease of ₹2-4 per kg in cotton yarn prices. The market did not see any encouraging moves from the downstream industry. A trader from the Tiruppur market told F2F, "The market remained bearish as buying was very slow. Buyers were reluctant to make new purchases as they were uncertain about the demand from the garment industry. They were worried about disruptions in the movement of goods for international trade." The bearish tone in cotton prices in the domestic and global markets was also a discouraging factor for yarn trade.

In Tiruppur, cotton yarn prices were noted as 30 count combed cotton yarn at ₹270-275 (approximately $3.23-3.29) per kg (excluding GST), 34 count combed cotton yarn at ₹280-285 (approximately $3.35-3.41) per kg, 40 count combed cotton yarn at ₹290-295 (approximately $3.47-3.53) per kg, 30 count carded cotton yarn at ₹244-249 (approximately $2.92-2.98) per kg, 34 count carded cotton yarn at ₹254-258 (approximately $3.04-3.09) per kg and 40 count carded cotton yarn at ₹260-265 (approximately $3.11-3.17) per kg, as per TexPro.

In Gujarat, cotton prices were down ₹300-400 per candy of 356 kg amid slow demand and weakness in ICE cotton. However, ICE cotton had a recovery at the beginning of the week due to short covering by investors. Trade sources indicated that mills were slow in fresh buying due to uncertainty in demand from fabric manufacturers. Opinions differed on the impact of the Iran-Israel conflict on the cotton trade. While some in the bearish lobby expected a downward trend, others held a bullish perspective. Cotton arrivals were recorded at 20,000-22,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 59,000-60,000 bales. In Gujarat, the benchmark Shankar-6 cotton was quoted between ₹59,000-60,000 (approximately $706.01-$717.98) per candy of 356 kg, while southern mills were looking to buy cotton at ₹60,500-61,000 (approximately $723.96-$729.94) per candy.

Disclaimer: The prices in this article are for guidance only. 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)