The prices of cotton yarn in south India have declined further today. Major markets in south India, such as Tiruppur and Mumbai, have experienced a significant drop in demand. This situation has raised concerns about substantial losses for spinning mills. Additionally, the cotton trade has also been affected by sluggish demand. Cotton prices have also witnessed a decline in the Gujarat market. Although traders anticipate garment export orders in the coming month, the market remains nervous as these orders may only provide support in the last week of June and July. Consequently, the trade sector will continue to suffer from poor demand until then.

Cotton yarn prices in the Tiruppur market have further decreased by ₹2-5 per kg as mills and traders have been offering significant discounts. The slower demand from the weaving industry has compelled mills to entice buyers by providing higher discounts. A trader from Tiruppur told Fibre2Fashion, "Mills are experiencing losses of ₹20-25 per kg in the production of cotton yarn due to previously purchased natural fibre at higher prices. The recent decrease in cotton prices may not alleviate the mills' situation."

The prices in the Tiruppur market are ₹266-272 per kg (excluding GST) for 30 count combed cotton yarn, ₹277-283 per kg for 34 count combed cotton yarn, ₹287-294 per kg for 40 count combed cotton yarn, ₹242-246 per kg for 30 count carded cotton yarn, ₹249-254 per kg for 34 count carded cotton yarn, and ₹253-260 per kg for 40 count carded cotton yarn, according to Fibre2Fashion's market insight tool TexPro.

Cotton yarn prices in Mumbai have also experienced a decline due to poor demand. Traders are concerned about the continuous decrease in purchases from the weaving industry. A trader from the Mumbai market told F2F, "The current market conditions are extremely worrisome for the entire value chain. Garment units are refraining from buying fabric as they are receiving orders from retailers and brands."

In Mumbai, the prices for 60 count carded cotton yarn of both warp and weft varieties remained stable at ₹1,475-1,510 and ₹1,335-1,375 per 5 kg (excluding GST), respectively. Other prices reported include ₹343-348 per kg for 60 combed warp, ₹1,430-1,470 per 4.5 kg for 80 carded (weft) cotton yarn, ₹272-276 per kg for 44/46 count carded cotton yarn (warp), ₹256-266 per kg for 40/41 count carded cotton yarn (warp), and ₹280-285 per kg for 40/41 count combed yarn (warp), as per TexPro.

In Gujarat, cotton prices have remained bearish due to poor demand from spinning mills. Cotton has witnessed a decline of ₹1,500-2,000 per candy (356 kg) since last week. Trade sources indicate that cotton yarn prices may further decrease as spinning mills exercise more caution due to limited buying from the weaving industry. Heavy losses and a liquidity crunch are also dampening sentiments in the cotton trade. Cotton was traded at ₹57,000-58,000 per candy (356 kg). The estimated cotton arrivals in Gujarat were around 24,000-26,000 bales of 170 kg, with all-India arrival estimated at 90,000-95,000 bales of 170 kg.

Fibre2Fashion News Desk (KUL)

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Cotton yarn price down in south India; mills concerned over low demand

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