South India's cotton yarn prices steady amid slightly improved demand

13 Aug '24

3 min read

South India's cotton yarn prices steady amid slightly improved demand

Pic: Adobe Stock

Insights

Cotton yarn prices in south India remained stable, with slight improvement in local demand ahead of the festival season, despite concerns over exports to Bangladesh.
Both Tiruppur and Mumbai saw steady prices, while Gujarat's cotton prices were largely unaffected by global trends.
Traders expect demand to pick up next week.
Cotton arrivals were modest.

South India’s cotton yarn prices remained stable as the market saw a slight uptick in demand. Both the Tiruppur and Mumbai markets experienced steady prices. However, concerns persist regarding the shipment of cotton yarn and other textile products to Bangladesh. Despite this, traders noted a marginal improvement in local buying ahead of the upcoming festival season. Typically, demand picks up earlier, but this year it has been delayed due to various challenges on both domestic and international fronts.

While cotton yarn prices remained stable amid slightly better demand, the sentiment in south India differed from that in north India. A Mumbai trader told Fibre2Fashion, "Cotton yarn prices held steady due to slightly improved buying from the downstream industry, likely driven by local demand for the festival season. However, the ongoing crisis in Bangladesh continues to be a concern for the yarn market."

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,330-1,370 (approximately $15.84-$16.32) and ₹1,180-1,260 per 5 kg (approximately $14.06-$15.01) (excluding GST), respectively. Other prices include 60 combed warp at ₹314-318 (approximately $3.74-$3.79) per kg, 80 carded weft at ₹1,270-1,310 (approximately $15.13-$15.61) per 4.5 kg, 44/46-carded warp at ₹242-258 (approximately $2.88-$3.07) per kg, 40/41 carded warp at ₹238-246 (approximately $2.84-$2.93) 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 saw stability in cotton yarn prices, though south Indian spinning mills are under pressure to clear their stock. However, they remain optimistic about the festival season. Trade sources expect demand to improve from next week, a trend that contrasts with the bearish tone in north India.

In Tiruppur, knitting cotton yarn prices were as follows: 30 count combed cotton yarn at ₹260-268 (approximately $3.12-3.19) per kg (excluding GST), 34 count combed cotton yarn at ₹272-277 (approximately $3.24-3.30) per kg, 40 count combed cotton yarn at ₹285-290 (approximately $3.39-3.45) per kg, 30 count carded cotton yarn at ₹237-244 (approximately $2.82-2.91) per kg, 34 count carded cotton yarn at ₹244-248 (approximately $2.91-2.95) per kg and 40 count carded cotton yarn at ₹248-254 (approximately $2.95-3.03) per kg.

In Gujarat, cotton prices remained relatively stable despite fluctuations in ICE cotton. Traders indicated that domestic cotton prices have decoupled from global trends, with higher MSP dictating local prices. Challenges for the downstream textile industry may dampen cotton consumption, but ginners, stockists, and MNCs are attempting to maintain current price levels. Gujarat’s cotton crop is facing deficient rainfall, posing a significant challenge to production.

Cotton arrivals were recorded at 3,000-4,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 10,000-12,000 bales. The benchmark Shankar-6 cotton was quoted between ₹57,000-57,500 (approximately $679.00-$684.96) per candy of 356 kg, while southern mills sought to buy cotton at ₹57,500-58,000 (approximately $684.96-$690.91) per candy.