Low demand hits south Indian cotton yarn, prices of few varieties drop

In the Tiruppur market, a drop of ₹2 per kg was noted in some counts and varieties. Export and domestic festival demand could not uplift market sentiments. A trader from the Tiruppur market told Fibre2Fashion, "Garment export orders diverted from Bangladesh were also insufficient to boost demand in the textile value chain. Spinning mills are under pressure as they struggle to maintain yarn prices despite rising cotton prices. Several counts and varieties have decreased in price over the last few days.”

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹266-274 (approximately $3.18-3.27) per kg (excluding GST), 34 count combed cotton yarn at ₹275-282 (approximately $3.29-3.37) per kg, 40 count combed cotton yarn at ₹290-296 (approximately $3.46-3.54) 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 $3.05-3.11) per kg.

The Mumbai market also experienced slow demand for cotton yarn, although most varieties and counts traded at previous levels. However, a few coarse counts decreased due to selling pressure from mills. A market expert noted that the slow demand indicates a reduction in supply pipeline capacity, as nobody wants to stock raw material amid uncertainty in the textile value chain. Tight money supply is also a concern, with liquidity being diverted to the stock market despite repeated warnings from SEBI.

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,440-1,500 (approximately $17.21-$17.93) and ₹1,320-1,420 per 5 kg (approximately $15.78-$16.97) (excluding GST), respectively. Other prices include 60 combed warp at ₹328-336 (approximately $3.92-$4.02) per kg, 80 carded weft at ₹1,380-1,420 (approximately $16.49-$16.97) per 4.5 kg, 44/46 carded warp at ₹255-265 (approximately $3.05-$3.17) per kg, 40/41 carded warp at ₹254-264 (approximately $3.04-$3.16) per kg and 40/41 combed warp at ₹280-285 (approximately $3.34-3.40) per kg, according to trade sources.

In Gujarat, cotton prices eased following the start of new arrivals, as mills reduced their purchases of last year’s cotton. Prices have dropped by ₹500-800 per candy of 356 kg in the last few days. Trade sources reported that cotton prices softened as new arrivals began, and millers reduced their buying of last year’s cotton. However, recent rains have disrupted the picking of the cotton crop, which may delay arrivals by around two weeks. This could support cotton prices in the coming days, forcing mills to continue buying last year’s cotton.

Cotton arrivals were recorded at around 2,000-2,500 bales of 170 kg, including a negligible quantity of new cotton. All-India arrivals were estimated at 7,000-8,000 bales. The new wave of rains across several parts of the country has disturbed the arrival of new cotton. The benchmark Shankar-6 cotton was quoted between ₹58,800-59,000 (approximately $702.42-$704.81) per candy of 356 kg, while southern mills were seeking to buy cotton at ₹59,500-60,000 (approximately $710.79-$716.76) per candy. New cotton was traded at ₹58,000-58,200 (approximately $692.87-$695.26) per candy with a condition of a maximum of 10 per cent moisture, though the moisture level is currently higher than this.

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)