South Indian cotton yarn prices steady; certain counts register gains

05 Apr '24

3 min read

South Indian cotton yarn prices steady; certain counts register gains

Pic: Adobe Stock

Insights

South India's cotton yarn market shows stable prices with moderate demand, while Mumbai and Tiruppur markets witness limited buying due to cautious sentiment among fabric manufacturers.
Some cotton yarn counts in Mumbai see price gains due to supply factors.
In Gujarat, cotton prices dropped recently, but no further declines are expected.

The south Indian cotton yarn market observed average demand today, with prices of most counts and varieties remaining stable. In contrast, the Mumbai market experienced steadiness in the prices of cotton yarn, with exceptions for a few counts. There was stability in raw material prices in the Tiruppur market as well. Both markets witnessed regular but limited purchasing from fabric manufacturers. Trade experts mentioned that payment was not an issue for the trade. However, buyers remained cautious about new purchases due to the slow demand from the garment industry.

In Mumbai, there were gains in a few counts of cotton yarn. Nevertheless, many other counts and varieties were traded at their previous prices. A Mumbai trader told Fibre2Fashion, "Regular demand is expected to continue in limited quantities. This demand will not support any price increase in cotton yarn. A few counts of cotton yarn have shown an upward trend due to supply factors."

In Mumbai, 60 carded yarn of warp and weft varieties were sold at 1,490-1,520 (approximately $17.89-18.25) and ₹1,390-1,450 per (approximately $16.69-17.41) 5 kg (excluding GST), respectively. Other prices include 60 combed warp ₹337-342 (approximately $4.05-4.11) per kg, 80 carded weft ₹1,480-1,520 (approximately $17.77-18.25) per 4.5 kg, 44/46 carded warp ₹265-272 (approximately $3.18-3.27) per kg, 40/41 carded warp ₹265-270 (approximately $3.18-3.24) per kg, 40/41 combed warp ₹296-302 (approximately $3.55-3.63) and 30/32 carded warp ₹252-257 (approximately $3.03-3.09) per kg, according to Fibre2Fashion's market insight tool TexPro.

The Tiruppur market also saw stable trade in cotton yarn. Buyers were cautious, seeking clarity on the demand from the downstream industry. A Tiruppur trader told F2F, "There was no issue with payment in the market. However, buyers were not overly optimistic as global export demand remained weak. Should export demand improve, cotton yarn prices might increase."

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 dropped by ₹300-500 per candy of 356 kg in the last few days. However, traders do not anticipate further declines in the coming weeks. A market source stated that Indian cotton prices might rise due to consistent demand from spinning mills, which do not have large inventories for the upcoming dry months. Despite the recent consistent decline in ICE cotton prices, Indian cotton prices have defied this trend, indicating stronger domestic market sentiments. Cotton arrivals in Gujarat were noted at 18,000-20,000 bales of 170 kg, with all-India arrivals estimated at 58,000-60,000 bales. In Gujarat, the benchmark Shankar-6 cotton was quoted between ₹60,200-60,800 (approximately $722.72-729.93) per candy of 356 kg, with Southern mills looking to purchase cotton at ₹61,000-61,500 (approximately $732.33-738.33) per candy.