South India cotton yarn prices stable on slower demand

08 Sep '23

3 min read

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Insights

Cotton yarn prices remain stable in South India, despite attempts by spinners and stockists to raise them, with weak demand from the weaving and garment industries preventing increases.
Cotton prices dipped owing to a fall in ICE cotton rates and subdued domestic market sentiment, further exacerbated by recent holidays in Gujarat, dampening the mood further.

South Indian market witnessed steady trend in cotton yarn prices as bearish demand did not allow millers and stockists to quote higher prices. Traders said that spinners and stockists were trying to raise prices, but weaving industry was not keen to buying at higher prices. They were worried that there may be slower buying from the downstream garment industry. Therefore, the market was in wait and watch mode for improvement in the sentiments. Meanwhile, cotton prices have eased in the last couple of days due to fall in ICE cotton.

Tiruppur market noted stability in cotton yarn prices. The prices were hovering at previous level after a rise of ₹3-5 per kg in the beginning of this week. A trader from Tiruppur told Fibre2Fashion, “The market was waiting for improvement in trade sentiments. After the recent rise in prices, demand did not improve. Millers and stockists could not increase prices further because of slower demand. So, the prices will gain only when the demand from garment industry picks up.”

Prices in the Tiruppur market were noted as 30 count combed cotton yarn ₹263-268 per kg (excluding GST), 34 count combed cotton yarn ₹271-276 per kg, 40 count combed cotton yarn ₹282-287 per kg, 30 count carded cotton yarn ₹238-243 per kg, 34 count carded cotton yarn ₹242-247 per kg and 40 count carded cotton yarn ₹250-255 per kg, according to Fibre2Fashion's market insight tool TexPro.

Mumbai market also witnessed stability in cotton yarn prices. Demand was slightly higher but stockists and traders as well as spinners were unable to hike yarn prices. A trader from Mumbai market told Fibre2Fashion, “The market needs more buying from weaving industry to support prices. Recent fall in cotton prices also dampened market sentiments in cotton yarn. Gains in the natural fibre will lead to rise in yarn prices.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,420-1,440 and ₹1,312-1,355 per 5 kg (excluding GST), respectively. Other prices include: 60 combed warp ₹322-328 per kg, 80 carded weft ₹1,305-1,330 per 4.5 kg, 44/46 carded warp ₹255-260 per kg, 40/41 carded warp ₹240-244 per kg, and 40/41 combed warp ₹268-272 per kg, as per TexPro.

In Gujarat, cotton prices eased in the last couple of days. However, many markets were closed due to Sri Krishna Janmashtami—a festival celebrated all over India. The recent fall in ICE cotton and bearish tone in domestic cotton market dampened sentiments in spot cotton prices. Cotton prices decreased by ₹1000-1500 per candy of 356 kg in the last couple of days. In Gujarat market, Shankar-6 cotton was quoted between ₹61,000-61,500 per candy. Cotton arrival was around 5,500 bales of 170 kg in Gujarat. All India arrival was estimated at 21,000 bales.

Fibre2Fashion News Desk (KUL)

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This according to Fibre2Fashion's Market Intelligence Tool - TexPro