Cotton yarn prices in southern India, particularly in Mumbai and Tiruppur, have managed to hold steady despite a bearish market and subdued demand from consumer industries and exporters. The stability in prices can be attributed to mills’ reluctance to reduce prices and their offer of discounts for bulk orders. However, the weaving industry has adopted a cautious approach, leading to overall weak demand.
In Mumbai, cotton yarn prices remained unchanged as mills and stockists provided discounts for larger quantity orders. Traders reported that mills are currently holding a substantial stock of cotton yarn and are not eager to lower prices. They anticipate that prices will either remain stable or potentially increase in the near future. This optimism has prompted them to offer discounts on bulk purchases. In Mumbai, 60 count carded cotton yarn of both warp and weft varieties was sold at ₹1,420-1,445 and ₹1,290-1,330 per 5 kg (excluding GST), respectively.
Similarly, cotton yarn prices in Tiruppur have remained steady since the beginning of the month. However, demand from the weaving industry has been lackluster. After a brief uptick in buying following a price revision, demand weakened once again. The weaving industry is exercising caution in procuring raw materials until there are clear indications of improved demand from the retail sector. Prices in the Tiruppur market were noted as 30 count combed cotton yarn at ₹255-262 per kg (excluding GST), 34 count combed cotton yarn at ₹265-272 per kg, and 40 count combed cotton yarn at ₹275-282 per kg.
In Gujarat, cotton prices have experienced a decline due to bearish signals from ICE cotton and reduced demand from spinning mills. Traders have observed a downward trend in ICE cotton prices in recent days, leading to mills’ lack of interest in new purchases of the natural fiber. This week, cotton prices in Gujarat dropped by ₹700-800 per candy (356 kg), with cotton trading at ₹55,500-56,000 per candy. The arrival of cotton in Gujarat comfortably stood within 10,000 bales of 170 kg, while the nationwide arrival was estimated at 30,000-32,000 bales of 170 kg.
Despite the prevailing bearish tone in the cotton yarn market, the stable prices in southern India indicate that mills are optimistic about the future trajectory of prices. The weaving industry, on the other hand, remains cautious in its purchasing decisions, awaiting clearer signals of improved demand from the retail sector.