South Indian cotton yarn market anticipates mid-August demand surge

23 Jul '24

3 min read

South Indian cotton yarn market anticipates mid-August demand surge

Pic: Adobe Stock

Insights

South Indian cotton yarn market expects improved demand after mid-August as the consumer industry restocks.
Currently, buyers are cautious due to uncertain downstream demand, keeping prices stable in Mumbai and Tiruppur.
Limited buying pressure and bearish sentiments prevail.
In Gujarat, cotton prices remained steady, with mills waiting for lower prices.

The South India cotton yarn market is expected to see an improvement in demand after mid-August when the consumer industry will need to increase buying for restocking. Currently, buyers are very cautious about making fresh purchases due to uncertainty regarding demand from the downstream industry. Cotton yarn prices have remained stable in both major markets, Mumbai and Tiruppur, over the last couple of days. Trade sources indicate that mills and stockists are trying to hold prices at current levels, but some deals at discounted prices cannot be ruled out.

The Mumbai market noted stability in cotton yarn prices amid limited buying. Market sentiments were bearish as mills and stockists felt pressure. A trader from Mumbai told Fibre2Fashion, "There is no hope for a revival of demand this month. Sluggish demand may continue until mid-August. However, demand is likely to see a revival after that. Buyers are waiting for clear signs of better buying from the garment and fabric industry.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,375-1,420 (approximately $16.46-$17.01) and ₹1,270-1,320 per 5 kg (approximately $15.21-$15.81) (excluding GST), respectively. Other prices include 60 combed warp at ₹322-327 (approximately $3.86-$3.92) per kg, 80 carded weft at ₹1,300-1,340 (approximately $15.57-$16.05) per 4.5 kg, 44/46 carded warp at ₹260-267 (approximately $3.11-$3.20) per kg, 40/41 carded warp at ₹247-255 (approximately $2.96-$3.05) per kg and 40/41 combed warp at ₹280-283 (approximately $3.35-$3.39) per kg, according to trade sources.

The Tiruppur market also witnessed a similar trend. Cotton yarn prices were near previous levels as mills tried to hold current rates. Trade sources said that mills are not comfortable with present market prices. They are sandwiched between slow demand from the fabric industry and increasing cotton prices. Mills are looking for better demand in the coming month.

In Tiruppur, knitting cotton yarn prices were noted as: 30 count combed cotton yarn at ₹264-270 (approximately $3.16-3.23) per kg (excluding GST), 34 count combed cotton yarn at ₹274-279 (approximately $3.28-3.34) per kg, 40 count combed cotton yarn at ₹285-290 (approximately $3.41-3.37) per kg, 30 count carded cotton yarn at ₹239-246 (approximately $2.86-2.95) per kg, 34 count carded cotton yarn at ₹244-249 (approximately $2.92-2.98) per kg and 40 count carded cotton yarn at ₹249-255 (approximately $2.98-3.05) per kg.

In Gujarat, cotton prices were also steady amid slow demand. Spinning mills are not interested in buying cotton at current prices. They are looking to purchase the natural fibre at lower prices. However, ginners and stockists expect higher prices in the coming weeks. They are also waiting for a revival of demand in the entire textile value chain.

Cotton arrivals were recorded at 3,000-4,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 12,000-13,000 bales. The benchmark Shankar-6 cotton was quoted between ₹57,700-58,200 (approximately $691.96-$697.94) per candy of 356 kg, while southern mills were looking to buy cotton at ₹58,500-59,000 (approximately $700.34-$706.32) per candy.