Home » South India faces low demand; mills may cut cotton yarn production

South India faces low demand; mills may cut cotton yarn production

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South India is experiencing sluggish demand in its cotton yarn market, which could lead to a reduction in production by mills to prevent stock accumulation. Despite stable prices, market sentiments remain weak due to tepid demand from the weaving and garment industry. The cotton yarn prices in the Tiruppur market of Tamil Nadu, and the Mumbai market remained unchanged, except for the 40-41 counts yarn, which saw a decrease due to sluggish demand. In Tiruppur, cotton yarn prices have held steady, but mills and stockists are grappling with slow demand and a tight payment flow. “Mills may need to consider production cut. Prices have fallen to such a low level that it could pose difficulties for mills to continue operations. The entire textile value chain is under significant pressure due to a slowdown in exports,” a trader from Tiruppur told Fibre2Fashion. Prices in the Tiruppur market include ₹270-275 per kg (excluding GST) for 30 count combed cotton yarn, ₹282-287 per kg for 34 count combed cotton yarn, ₹295-300 per kg for 40 count combed cotton yarn, ₹245-250 per kg for 30 count carded cotton yarn, ₹252-255 per kg for 34 count carded cotton yarn, and ₹259-264 per kg for 40 count carded cotton yarn, according to Fibre2Fashion's market insight tool TexPro.  Similarly, in Mumbai, while cotton yarn prices have remained stable, the 40-41 counts yarn has experienced a downward trend with prices dropping by ₹10-12 per kg. Traders are unsure about the demand. “The cotton yarn market is grappling with weak sentiments. Weavers have substantial stocks of unsold fabrics. The market is also observing stringent payment conditions. Despite ongoing losses, weavers are striving to maintain production,” Bharat Shah, a trader from Mumbai market, told Fibre2Fashion. In Mumbai, 60 count carded cotton yarn of warp and weft varieties traded at ₹1,480-1,515 and ₹1,340-1,380 per 5 kg (excluding GST), respectively. Other prices include ₹345-350 per kg for 60 combed warp, ₹1,440-1,480 per 4.5 kg for 80 carded (weft) cotton yarn, ₹273-278 per kg for 44/46 count carded cotton yarn (warp), ₹258-268 per kg for 40/41 count carded cotton yarn (warp), and ₹282-286 per kg for 40/41 count combed yarn (warp), as per TexPro.  In Gujarat, cotton prices have stabilised following a decline last week. A sluggish trend in the spinning and other downstream industries has negatively impacted the sentiment of the cotton trade. According to trade sources, the market has seen limited purchasing activity from spinning mills. Cotton arrivals have remained steady, even with the conclusion of the current season. Cotton was traded at ₹59,000-60,000 per candy (356 kg). Cotton arrivals in Gujarat are estimated at 25,000-27,000 bales (170 kg each), with total arrivals across India estimated to be around 95,000-100,000 bales (170 kg each).

Fibre2Fashion News Desk (KUL)

 
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