Diwali mood in south India cotton yarn market, prices remain steady

10 Nov '23

3 min read

Pic: Adobe Stock

Insights

Diwali festivities led to stable cotton yarn prices in Mumbai and Tiruppur markets, with minimal trading activity.
Buyers are cautious, awaiting clearer market signals. Post-Diwali, increased buying is expected if cotton prices stabilise.
Mumbai and Tiruppur observed steady prices amid low demand, while cotton prices remained steady in Gujarat.

As festive activities have started ahead of the Diwali festival, cotton yarn prices remained stable in both the Mumbai and Tiruppur markets. Traders and buyers were preoccupied with Diwali celebrations, leading to negligible activity in the yarn market. Buyers were exercising caution in making new purchases, awaiting clearer signals from the downstream industry. Trade experts noted that the recent drop in cotton prices had also made buyers hesitant. Post-Diwali, there is an expectation of increased market activity, with fresh buying anticipated if cotton prices stabilise. In the Mumbai market, cotton yarn prices held steady amidst subdued demand from the downstream industry, while in Tiruppur, there was no significant movement in prices. The Mumbai market observed a steady trend in cotton yarn prices, influenced by minimal demand from the weaving industry, as buyers were absent due to Diwali festivities.

A trader from Mumbai told Fibre2Fashion, “Fabric production in most of the looms has been suspended as workers have gone on a holiday. Loom owners have decided to expand Diwali holiday so the workers will come back after two-three weeks. Therefore, cotton yarn demand is not expected to improve immediately after Diwali.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,400-1,420 and ₹1,275-1,330 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp ₹315-322 per kg, 80 carded weft ₹1,400-1,440 per 4.5 kg, 44/46 carded warp ₹254-259 per kg, 40/41 carded warp ₹238-244 per kg, 40/41 combed warp ₹262-266 per kg and 30/32 carded warp ₹227-232 per kg, according to Fibre2Fashion’s market insight tool TexPro.

Tiruppur market also noted stability in cotton yarn prices amid poor demand from weaving industry. A trader from Tiruppur told Fibre2Fashion, “There was no demand for cotton yarn. Weaving industry was very cautious for fresh buying. The workers have left for their native place due to Diwali.”

In Tiruppur market, cotton yarn prices remained stable. The prices were noted as 30 count combed cotton yarn ₹258-263 per kg (excluding GST), 34 count combed cotton yarn ₹266-271 per kg, 40 count combed cotton yarn ₹280-285 per kg, 30 count carded cotton yarn ₹233-236 per kg, 34 count carded cotton yarn ₹237-242 per kg and 40 count carded cotton yarn ₹240-250 per kg, as per TexPro.

Cotton prices were steady in Gujarat market after recent fall. ICE cotton has seen steep decline in previous sessions which has dampened sentiments in the domestic market. According to traders, although local cotton prices are driven by ICE cotton, prices have bottomed out. Cotton Corporation of India (CCI) will start buying of seed cotton after Diwali. It is buying seed cotton in other states, but the buying was in very little quantity, so there was no support to cotton prices.

In Gujarat market, Shankar-6 cotton was quoted between ₹56,000-57,000 per candy of 356 kg. Southern mills were intended to buy cotton at ₹57,000-57,500 per candy. The arrival was around 33,000 bales of 170 kg in Gujarat. All India arrival was estimated at 120,000-122,000 bales of 170 kg.

Fibre2Fashion News Desk (KUL)

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This according to Fibre2Fashion's Market Intelligence Tool - TexPro