South India cotton yarn market faces mixed trends amid heavy rains

30 Jul '24

3 min read

South India cotton yarn market faces mixed trends amid heavy rains

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Insights

South Indian cotton yarn market experienced mixed trends due to heavy rains disrupting production and transportation.
Prices fell in Mumbai, while Tiruppur saw stable prices despite weak demand and increased discounts.
Traders expect Tamil Nadu mills to reduce prices in August.
The benchmark Shankar-6 cotton was quoted at ₹57,000-57,500 per candy.

Sentiments weakened further in the south Indian cotton yarn market. In Mumbai, prices fell by ₹3-4 per kg due to heavy rains disrupting production and transportation in Maharashtra. Tiruppur also saw lower demand due to limited export orders in the garment industry, though prices remained stable. Traders expect Tamil Nadu mills to reduce cotton yarn prices in August.

The Mumbai market saw a further decline of ₹3-4 per kg as slow demand forced traders and stockists to offer lower rates. Heavy rains also disrupted production and transportation activities in the textile industry. A trader from Mumbai told Fibre2Fashion, "Garment manufacturing units are very cautious about buying fabric. It is a basic problem of the current yarn market. Rains have also affected cotton yarn demand as production and transportation activities have slowed down.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,340-1,380 (approximately $16.24-$16.72) and ₹1,190-1,270 per 5 kg (approximately $15.10-$15.41) (excluding GST), respectively. Other prices include 60 combed warp at ₹316-321 (approximately $3.82-$3.88) per kg, 80 carded weft at ₹1,280-1,320 (approximately $15.53-$16.01) per 4.5 kg, 44/46-carded warp at ₹244-260 (approximately $2.96-$3.15) per kg, 40/41 carded warp at ₹240-248 (approximately $2.91-$3.00) per kg and 40/41 combed warp at ₹280-285 (approximately $3.38-$3.44) per kg, according to trade sources.

The Tiruppur market noted stability in cotton yarn prices. However, spinning mills are offering higher discounts to attract buyers amid weak demand. Trade sources said that the mills are likely to reduce their mill rate for next month. The market did not see expected demand in July. However, traders are hopeful for higher buying in the coming month.

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 stable amid thin trade. Several Mandis were closed due to heavy rains and flood-like situations. Consequently, cotton arrivals further reduced. The share of stocked cotton in total trade has increased as ginners, stockists, and MNCs are gradually selling their stock. However, they are not in a hurry to clear their stock. Mills are also interested in buying cotton at current price levels.

Cotton arrivals were recorded at 2,000-3,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 11,000-12,000 bales. The benchmark Shankar-6 cotton was quoted between ₹57,000-57,500 (approximately $680.85-$686.82) per candy of 356 kg, while southern mills were looking to buy cotton at ₹57,500-58,000 (approximately $692.79-$704.73) per candy.