South India cotton yarn market steady amid slow demand

02 Apr '24

3 min read

Pic: Adobe Stock

Insights

Despite slow demand, the south Indian cotton yarn market remains stable, with prices unchanged from the previous week in Mumbai and Tiruppur.
Market experts anticipate possible slight improvements in buying but do not expect strong price support soon.
Mumbai showed better liquidity, while Tiruppur's demand remained weak.
Cotton prices rose in Gujarat.

The South Indian cotton yarn market continued to experience stability amid slow demand. Cotton yarn of various counts and varieties was traded at the prices from the previous week in the Mumbai and Tiruppur markets. However, market experts expected that there could be slightly better buying, but cotton yarn prices may not find support in the coming weeks. They hoped that cotton yarn prices might see an upward trend only if the price of the natural fibre rises in domestic and global markets.

The Mumbai market witnessed stability in cotton yarn prices amid slow demand. A trader from Mumbai, speaking to Fibre2Fashion, said, "The market witnessed better liquidity in the last fortnight of the previous fiscal as micro and small enterprises received payments for long-outstanding dues. However, the market will depend on the actual demand from the downstream industry, which is not very promising at the moment. Buyers are not expected to worry about payments in the new fiscal."

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,490-1,520 (approximately $17.87-18.23) and ₹1,390-1,450 (approximately $16.67-17.39) per 5 kg (excluding GST), respectively. Other prices include 60 combed warp ₹332-337 (approximately $3.98-4.04) per kg, 80 carded weft ₹1,460-1,500 (approximately $17.51-17.99) per 4.5 kg, 44/46 carded warp ₹265-272 (approximately $3.18-3.26) per kg, 40/41 carded warp ₹260-265 (approximately $3.12-3.18) per kg, 40/41 combed warp ₹296-302 (approximately $3.55-3.62) per kg and 30/32 carded warp ₹255-260 (approximately $3.06-3.12) per kg, according to Fibre2Fashion's market insight tool TexPro.

The Tiruppur market observed weak demand, yet cotton yarn prices remained unchanged. A trader from the Tiruppur market, speaking to F2F, mentioned, "The new fiscal may bring normalcy to yarn trade. Demand from the downstream industry may improve, but prices are likely to remain stable. The movement in cotton prices will provide direction to the cotton yarn trade."

In Tiruppur, cotton yarn prices were noted as: 30 count combed cotton yarn at ₹275-282 (approximately $3.30-3.38) per kg (excluding GST), 34 count combed cotton yarn at ₹280-288 (approximately $3.36-3.45) per kg, 40 count combed cotton yarn at ₹293-303 (approximately $3.51-3.63) per kg, 30 count carded cotton yarn at ₹245-253 (approximately $2.94-303) per kg, 34 count carded cotton yarn at ₹254-260 (approximately $3.05-3.12) per kg and 40 count carded cotton yarn at ₹260-268 (approximately $3.12-3.21) per kg, as per TexPro.

In Gujarat, cotton prices were observed to be ₹500 per candy of 356 kg higher than those of the previous week. Traders noted that market sentiments had improved as spinning mills, MNCs, and stockists showed interest in new purchases. Currently, domestic cotton prices are tracking ICE cotton, but the two markets may diverge in the weeks ahead. The arrival of cotton was recorded at 20,000-22,000 bales of 170 kg in Gujarat. The all-India arrival was estimated to be 60,000-62,000 bales. In Gujarat, the benchmark Shankar-6 cotton was quoted between ₹60,500-61,000 (approximately $725.54-731.54) per candy of 356 kg. Southern mills were looking to purchase cotton at ₹61,500-62,000 (approximately $737.53-743.53) per candy.