Cotton yarn prices stable amid muted demand in south India

In the Mumbai market, cotton yarn prices remained stable despite weaker demand. However, sellers are offering discounts of ₹1-2 per kg on a client-to-client basis. A trader from the Mumbai market told Fibre2Fashion, “After the winter and festival season, the cotton yarn trade market takes a pause for some time. Summer demand will pick up in a few weeks when power loom owners begin fabric production. Winter season demand will peak again after the Diwali festival.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,420-1,460 (approximately $16.91-$17.39) and ₹1,350-1,400 per 5 kg (approximately $16.08-$16.67) (excluding GST), respectively. Other prices include 60 combed warp at ₹325-333 (approximately $3.87-$3.97) per kg, 80 carded weft at ₹1,360-1,400 (approximately $16.20-$16.67) per 4.5 kg, 44/46 carded warp at ₹253-263 (approximately $3.01-$3.13) 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 $3.31-3.37) per kg, according to trade sources.

The Tiruppur market also experienced stable cotton yarn prices. Demand remained weak due to slow export orders and the seasonal shift. Recently, the government introduced more 6/8-digit HSN codes for synthetic knitting fabric under the minimum import price (MIP) regime to protect the domestic industry. Although this policy does not directly affect the cotton yarn market, it may send a positive signal to the entire textile value chain. According to a trader in Tiruppur, the cotton yarn trade is facing low demand from the fabric industry. The MIP on synthetic knitted fabric could support the cotton yarn market if it effectively restricts cheaper fabric imports.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹264-272 (approximately $3.14-3.24) per kg (excluding GST), 34 count combed cotton yarn at ₹274-282 (approximately $3.26-3.36) per kg, 40 count combed cotton yarn at ₹289-295 (approximately $3.44-3.51) per kg, 30 count carded cotton yarn at ₹242-249 (approximately $2.88-2.97) per kg, 34 count carded cotton yarn at ₹249-253 (approximately $2.97-3.01) per kg and 40 count carded cotton yarn at ₹255-260 (approximately $3.04-3.10) per kg.

In Gujarat, the cotton trade was bearish due to slow buying from mills. Prices dropped by ₹200-300 per candy (356 kg) over the past few days. New cotton arrivals have also begun in limited quantities in Gujarat, Maharashtra, and other states. Increasing cotton arrivals are a significant negative factor for the market. Traders reported that slow buying by spinning mills, combined with rising cotton arrivals, has dampened sentiment in the cotton trade.

Cotton arrivals were recorded at around 7,000-8,000 bales of 170 kg, including a negligible quantity of new cotton. All-India arrivals were estimated at 20,000-25,000 bales. The benchmark Shankar-6 cotton from last season was quoted between ₹58,500-59,000 (approximately $696.73-$702.69) per candy of 356 kg, while southern mills were looking to buy cotton at ₹59,500-60,000 (approximately $708.64-$714.60) per candy. New cotton was traded at ₹56,800-58,000 (approximately $676.49-$690.78) per candy, with a maximum moisture condition of 10 per cent. However, the actual moisture level is currently higher than the stipulated 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)