South Indian cotton yarn prices ease amid weak export demand

The Mumbai market witnessed poor demand, prompting stockists, traders and spinners to reduce their selling prices. Cotton yarn prices decreased by ₹3-5 per kg across different counts and varieties in the last couple of days. A trader from the Mumbai market told Fibre2Fashion, “Spinning mills and stockists are under pressure due to the slow demand. The domestic market cannot support cotton yarn prices if export demand remains bearish. However, domestic demand may improve further after Pitra Paksh (the Hindu auspicious fortnight during which new purchases are forbidden), which will end on Wednesday."

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,420-1,460 (approximately $16.64-$17.42) and ₹1,350-1,400 per 5 kg (approximately $16.11-$16.70) (excluding GST), respectively. Other prices include 60 combed warp at ₹325-333 (approximately $3.88-$3.97) per kg, 80 carded weft at ₹1,360-1,400 (approximately $16.23-$16.70) per 4.5 kg, 44/46 carded warp at ₹253-263 (approximately $3.02-$3.14) per kg, 40/41 carded warp at ₹251-261 (approximately $2.99-$3.11) per kg and 40/41 combed warp at ₹278-283 (approximately $3.32-3.38) per kg, according to trade sources.

The Tiruppur market also saw bearish sentiments in the cotton yarn trade. A few counts and varieties of cotton yarn were traded lower by ₹2-3 per kg. Current festival demand could not boost market sentiments. According to a trader from Tiruppur, mills are under pressure due to slow demand and a higher dependence on the local market. They are offering larger discounts to attract potential buyers and manage their liquidity.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹264-272 (approximately $3.15-3.25) per kg (excluding GST), 34 count combed cotton yarn at ₹274-282 (approximately $3.27-3.36) per kg, 40 count combed cotton yarn at ₹289-295 (approximately $3.45-3.52) per kg, 30 count carded cotton yarn at ₹242-249 (approximately $2.89-2.97) per kg, 34 count carded cotton yarn at ₹249-253 (approximately $2.97-3.02) per kg and 40 count carded cotton yarn at ₹255-260 (approximately $3.04-3.10) per kg.

In Gujarat, cotton prices hovered near previous levels. Traders reported that spinning mills are buying cotton cautiously due to uncertainties in purchasing from the downstream industry. However, the higher MSP (minimum support price) for the upcoming marketing season, which begins today, may provide support for cotton prices.

Cotton arrivals were recorded at around 4,000-5,000 bales of 170 kg, including a negligible quantity of new cotton. All-India arrivals were estimated at 9,000-11,000 bales. The benchmark Shankar-6 cotton was quoted between ₹58,800-59,000 (approximately $701.51-$703.90) per candy of 356 kg, while southern mills were looking to buy cotton at ₹59,500-60,000 (approximately $709.87-$715.83) per candy. New cotton was traded at ₹58,000-58,200 (approximately $691.97-$694.36) per candy with a condition of maximum 10 per cent moisture, although the actual moisture level is significantly higher than this condition.

Disclaimer: The prices in this article are based on market sources and hence, 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)