Cotton yarn prices steady in south India; payment crisis lowers demand

Cotton yarn prices in south India remained stable today, as demand failed to meet expectations. Numerous holidays and festivals this month have slowed down production and trading activities across the value chain. Traders said that demand from the downstream industry did not improve due to tight payment conditions and sluggish buying from end consumers. Consequently, cotton yarn prices continued to hover at previous levels. 

The Mumbai cotton yarn market remained stable, with limited demand from power looms due to slower production and a payment crisis. “The demand was weak as buyers were absent, and weaving activities slowed down because of muted buying from the garment industry. The payment crisis contributed to lower demand as various holidays impeded banking services, affecting the payment flow throughout the textile value chain,” Bharat Shah, a trader from Mumbai, told Fibre2Fashion. 

In Mumbai, 60 count carded cotton yarn for warp and weft varieties traded at ₹1,525-1,540 and ₹1,400-1,450 per 5 kg (GST extra), respectively. The cotton yarn of 60 combed warp was priced at ₹342-345 per kg. 80 carded (weft) cotton yarn sold for ₹1,440-1,480 per 4.5 kg, 44/46 count carded cotton yarn (warp) was priced at ₹282-287 per kg, 40/41 count carded cotton yarn (warp) sold for ₹264-272 per kg, and 40/41 count combed yarn (warp) was priced at ₹294-307 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

Cotton yarn prices in south India remained stable due to various holidays and festivals, which have disrupted production, trading, and payment flows.
In Tiruppur, yarn prices were steady amid average demand, while in Gujarat, cotton prices rose by ₹1,500 per candy of 356 kg, influenced by global factors.
Sellers expect a further increase in cotton prices.

Tiruppur’s market experienced steady prices amid average demand for cotton yarn. Trade sources stated that after mid-April, payment flow in the textile sector is expected to improve. In the Tiruppur market, 30 count combed cotton yarn traded at ₹280-285 per kg (GST extra), 34 count combed at ₹292-297 per kg, and 40 count combed at ₹308-312 per kg. Cotton yarn of 30 count carded sold for ₹255-260 per kg, 34 count carded at ₹265-270 per kg, and 40 count carded at ₹270-275 per kg, as per TexPro. 

In Gujarat, cotton prices rose by ₹1,500 to ₹63,000-63,500 per candy of 356 kg this week. Trade sources indicated that the increase in cotton prices was due to global factors. Buyers were eager to purchase more cotton, but sellers were hesitant, expecting higher prices as they anticipate a further rise in the market. Cotton arrivals in Gujarat were noted at 30,000 bales of 170 kg each. All India arrivals were estimated to be around one lakh bales. 

Fibre2Fashion News Desk (KUL)