Container shortage impacts south Indian cotton yarn, prices steady

09 Jul '24

3 min read

Container shortage impacts south Indian cotton yarn, prices steady

Pic: Adobe Stock

Insights

South India cotton yarn market expects better demand in coming weeks, but prices remain steady due to logistics challenges and container shortages.
In Mumbai, cotton yarn prices are stable, with a slight increase in fabric purchases suggesting future demand.
Tiruppur's prices are unchanged amid shipment delays.
Reduced cotton arrivals may drive price up.

South India's market is expected to see better demand for cotton yarn in the coming weeks, but prices have remained stable this week. Market experts noted slightly improved buying of cotton yarn and fabric in south India, but this has not led to an increase in cotton yarn prices. Traders believe that logistics challenges are dampening market sentiment for cotton yarn. The shortage of shipping containers is delaying shipments of cotton yarn and its products, which is a serious concern for the market.

In Mumbai, cotton yarn prices have remained steady. However, a slight increase in fabric purchases is a positive sign for the cotton yarn market. A trader from Mumbai told Fibre2Fashion, "Currently, cotton yarn demand is not encouraging, but higher demand for fabric will boost demand in the coming weeks as buyers will come to the market for restocking. However, traders are still worried about slow retail demand and export orders."

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 noticed unchanged cotton yarn prices. Trade sources said that there was slightly better demand for cotton yarn but not enough to raise prices. Delays in shipments of cotton products is one of the main causes for concern in the market. Indian exporters are facing a shortage of ships as empty ships are not arriving from China. Export delays are causing serious problems for sentiment in the cotton yarn trade.

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 slightly lower, but sellers were absent at the current prices. Therefore, the Gujarat market noticed very thin trade of the natural fibre. Traders said that sellers are not interested in current prices and prefer to wait for improvement in the coming weeks. However, mills are looking to buy cotton at current prices but are unable to find sellers who can fulfil their requirements. Lower cotton arrivals have raised hopes of an increase in cotton prices in the coming weeks. Ginners, MNCs, and stockists expect that the availability of cotton will reduce in the coming months, which will support a price rise.

Cotton arrivals were recorded at 8,000-10,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 20,000-22,000 bales. The benchmark Shankar-6 cotton was quoted between ₹57,800-58,300 (approximately $692.26-$698.25) per candy of 356 kg, while southern mills were looking to buy cotton at ₹58,500-59,000 (approximately $700.65-$706.63) per candy.