On April 25th, foreign power reported that cotton yarn prices in southern India have stabilized, but there is selling pressure. Trade sources report that due to high cotton costs and weak demand in the textile industry, spinning mills currently have no profits or are facing losses. The textile industry is currently shifting towards more affordable alternatives. However, polyester or viscose blends are not popular in the textile and clothing industries, and such buyers are said to have expressed rejection or opposition to this.
Mumbai cotton yarn is facing selling pressure, with textile mills, hoarders, and traders all searching for buyers to clear their cotton yarn inventory. But textile factories are unwilling to make large-scale purchases. A Mumbai trader said, “Although cotton yarn prices remain stable, sellers are still offering discounts on the basis of published prices to attract buyers. Demand from clothing manufacturers has also decreased.” The textile market has also seen a new trend of mixing cheap fibers, with cotton polyester, cotton viscose, polyester, and viscose fabrics being popular due to their price advantages. The fabric and clothing industries are adopting cheaper raw materials to protect their profits.
In Mumbai, the transaction price for 60 coarse combed warp and weft yarns is 1550-1580 rupees and 1410-1440 rupees per 5 kilograms (excluding goods and services tax). The price of 60 combed yarn is 350-353 rupees per kilogram, 80 counts of combed yarn is 1460-1500 rupees per 4.5 kilograms, 44/46 counts of combed yarn is 280-285 rupees per kilogram, 40/41 counts of combed yarn is 272-276 rupees per kilogram, and 40/41 counts of combed yarn is 294-307 rupees per kilogram.
The price of Tirupur cotton yarn is also stabilizing, and demand is insufficient to support the market. Export demand is very weak, which will not help the cotton yarn market. The high price of cotton yarn has limited acceptance in the domestic market. A trader from Tirupur said, “Demand is unlikely to improve in the short term. Textile value chain profits have fallen to the lowest level. Many spinning mills currently have no profits or are facing losses. Everyone is uneasy about the current market situation
In the Tirupur market, the transaction price for 30 combed yarns is 278-282 rupees per kilogram (excluding GST), 34 combed yarns are 288-292 rupees per kilogram, and 40 combed yarns are 305-310 rupees per kilogram. The price of 30 pieces of combed yarn is 250-255 rupees per kilogram, 34 pieces of combed yarn is 255-260 rupees per kilogram, and 40 pieces of combed yarn is 265-270 rupees per kilogram.
Due to a decrease in demand from spinning mills, cotton prices in Gubang, India are showing a weak trend. Traders reported that there is uncertainty in downstream industry demand, leading to spinners being cautious about procurement. Textile mills are also not interested in expanding inventory. The price of cotton yarn is 61700-62300 rupees per Candy (356 kilograms), and the arrival quantity of Gubang cotton is 25000-27000 packages (170 kilograms per package). The estimated arrival volume of cotton in India is around 9 to 9.5 million bales.
Post time: May-09-2023