Cotton yarn prices in southern South India have remained stable in general demand, and the market is trying to cope with the concerns caused by the delay of Indian festivals and wedding seasons.
Normally, before the August holiday season, retail demand for clothing and other textiles begins to rebound in July. However, this year’s festival season will not start until the last week of August.
The textile industry is anxiously waiting for the holiday season to arrive, and they are worried that there may be delays in improving demand.
Mumbai and Tirupur cotton yarn prices remain stable, despite concerns that the start of the festive season may be delayed due to additional Indian religious month Adhikmas. This delay may delay the domestic demand that usually occurs in July until late August.
Due to a slowdown in export orders, the Indian textile industry is relying on domestic demand and is closely monitoring the extended Adhikmas month. This month will continue until the end of August, rather than the usual end in the first half of August.
A Mumbai trader stated, “Yarn procurement was originally expected to increase in July. However, we do not expect any improvement until the end of this month. Retail demand for end products is expected to increase in September
In Tirupur, cotton yarn prices remained stable due to depressed demand and stagnant weaving industry.
A trader in Tirupur said: “The market is still bearish because buyers are no longer making new purchases. In addition, the decline in the price of cotton futures on the Intercontinental Exchange (ICE) has also had a negative impact on the market. Purchasing activities in the consumer industry have not played a supporting role.”
Traders said that, in sharp contrast to the Mumbai and Tirupur markets, the cotton price of Gubang fell after the decline of cotton in the ICE period, with a drop of 300-400 rupees per canti (356kg). Despite the price drop, cotton mills continue to purchase cotton, indicating low levels of raw material inventory during the off-season.
In Mumbai, 60 warp and weft yarns are priced at Rs 1420-1445 and Rs 1290-1330 per 5 kilograms (excluding consumption tax), 60 combed yarns at Rs 325 330 per kilogram, 80 plain combed yarns at Rs 1325 1350 per 4.5 kilograms, 44/46 plain combed yarns at Rs 254-260 per kilogram, 40/41 plain combed yarns at Rs 242 246 per kilogram, and 40/41 combed yarns at Rs 270 275 per kilogram.
In Tirupur, 30 counts of combed yarn are at Rs 255-262 per kilogram (excluding consumption tax), 34 counts of combed yarn are at Rs 265-272 per kilogram, 40 counts of combed yarn are at Rs 275-282 per kilogram, 30 counts of plain combed yarn are at Rs 233-238 per kilogram, 34 counts of plain combed yarn are at Rs 241-247 per kilogram, and 40 counts of plain combed yarn are at Rs 245-252 per kilogram.
The transaction price of Gubang cotton is 55200-55600 rupees per Kanti (356 kilograms), and the cotton delivery quantity is within 10000 packages (170 kilograms/package). The estimated arrival volume in India is 35000-37000 packages.
Post time: Jul-17-2023