South Indian cotton yarn markets witnessed stronger buying interest as firming domestic and global cotton prices encouraged buyers to secure supplies. The Mumbai market recorded a sharp rise in yarn prices, supported by strong demand and limited availability, while Tiruppur remained steady after witnessing a price increase earlier this week.
A trader from the Mumbai market told Fibre2Fashion that buyers are increasingly looking to ensure raw material security for their requirements. “Buyers are looking to ensure raw material security for their requirements. The market is performing strongly, with firm prices supported by limited availability of goods.”
However, extended payment cycles remain a key concern for market participants, particularly as they continue to put pressure on cash flows.
In Mumbai, carded cotton yarns of warp and weft varieties were traded at higher levels per kg, excluding GST, according to trade sources. Other cotton yarn varieties also witnessed firm pricing amid improved buying interest and restricted availability.
Tiruppur Market Holds Steady
The Tiruppur cotton yarn market remained steady today, although buying activity improved following the recent rise in cotton prices. The market had witnessed a price increase of around ₹– per kg earlier this week.
A Tiruppur-based trader said that cotton yarn prices did not increase further after the recent hike in the natural fibre. However, buyers returned to the market as cotton prices strengthened, prompting renewed interest in yarn procurement.
The current market environment has encouraged buyers to secure cotton and yarn supplies, particularly amid expectations of continued firmness in raw material prices.
Gujarat Cotton Prices Rise
Cotton prices in Gujarat also moved higher, supported by stronger Cotton Corporation of India (CCI) auction rates, firm ICE cotton futures and tight availability of stocks.
The combination of rising raw cotton prices, limited stocks and stronger downstream buying is providing support to cotton yarn prices across key South Indian markets.
Market participants are closely monitoring cotton prices and yarn demand as mills and buyers assess procurement requirements amid a firmer raw-material environment.
