Cotton yarn prices have further increased in the past days in Pakistan, over a rebound of sales to China, our correspondent reports. Prices could continue climbing, whatever the current rise of operating rates at spinning mills.
– From our Pakistan Correspondent Ahmed Fayz
Yarn prices have continued rising on the domestic market in Pakistan, over a sudden surge of export sales to China.
20s Poly-Cotton (PC) has gained Rs.2 (or 1.36%) per lb. in the last seven days on the Faisalabad yarn market.
Prices of medium and higher counts of cotton yarns have however remained relatively unchanged, in line with very stable cotton fiber prices in the country.
Margins have rapidly increased at the spinning mills due to a very stable raw material cost of the yarn makers.
The prices have also remained unchanged on the export market in dollar terms, being supported by the new fall of the domestic currency in the past week.
Pakistan is likely to ship additional quantities of yarns to China in coming months under a special arrangement between the two countries.
As a result, the yarn prices should remain very firm in coming days, whatever the recovery of operating rates at the spinning mills and resultant rise of available quantities in the country.
Polyester staple fiber prices are staying very unchanged in Pakistan at Rs.193 per kilo, although import offers have slightly increased in last seven days.
Margins of the domestic polyester producers have further surged due to a new fall of MEG prices on the international market.
Polyester prices could stay unchanged in coming days, considering the highest level of margins of the polyester makers.
Spun yarn prices have however continued increasing in line with the rise of demand from the domestic yarn processors.
Viscose staple fiber prices have further dropped in last seven days in Pakistan. At the same time spun yarn prices have stopped declining, as a clear sign that viscose prices will stay stable in the coming days.
Source: Emergingtextiles
