Cotton Yarn Price Rebounded In Pakistan In Recent Week

 

In recent week, domestic cotton yarn prices rebounded in Pakistan, rising nearly 3% in a week, of which polyester cotton yarn rose 0.35%, 30 polyester viscose yarn rose 1.77%. On the contrary, Pakistan's cotton yarn export quotation fell as foreign buyers remained on the sidelines as China's epidemic prevention and control and EU demand were under pressure.

Affected by the soaring prices of imported raw materials (cotton, chemical fiber, viscose and other fibers), the profits of Pakistan's textile mills are falling. As Pakistan's trade deficit widens, the Pakistani authorities may take measures to restrict imports and eliminate energy subsidies to the textile industry, which may further reduce the profits of textile mills.

In that week, the price of American cotton imported from Pakistan reached 160 cents / pound, up 7.7% in four weeks and 73% higher than that in the same period last year. Domestic cotton prices remained stable, with spot prices stable at INR 21000 per Maud. Due to insufficient demand from garment factories, the price of BCI yarn and organic yarn has little change.

In the same week, Pakistan polyester short price continued to rise with the international market price, 1.4d polyester short rose 1.03%. In the near future, the price of short polyester fiber imported from China has increased, and the profit of domestic polyester and short fiber manufacturers has decreased. Therefore, the price of short polyester fiber in Pakistan may be supported in the next few weeks.

In the recent week, Indian cotton prices continued to rise, S-6 prices rose to 10000 rupees / kand, rising by 3.5% in a single week, 30% in the past three months, and 119% in the past year. The reason for the price increase is the tight domestic supply and the rising international cotton price. Recently, the cotton association of India has just lowered its cotton production forecast for this year. The output has dropped from 6 million tons in the previous year to 5.5 million tons, while the domestic consumption has dropped from 4.96 million tons to 4.84 million tons, which is less than the output. The export volume has dropped from 1.32 million tons to 0.76 million tons. The U.S. Department of agriculture expects India's cotton production to rebound next year.

From the current situation, cotton prices are likely to remain high in India. Indian mills have raised their prices, cotton yarn prices have increased by 1-3 rupees / kg, blended yarn prices have not changed, because polyester and viscose short prices are stable.