Cotton yarn prices have continued rising on the domestic market in Pakistan whereas export prices have been raised in dollar terms, for the first time in weeks. Demand remains strong from downward processors as exports are boosted by the weakness of the local currency.
– From our Pakistan Correspondent Ahmed Fayz
Cotton yarn prices have continued increasing on Pakistan’s domestic and export markets, over a new rise of cotton fiber prices in the country.
Demand has remained very firm on the Faisalabad yarn market in the last seven days, whatever the increase of price offers.
20s carded cotton yarn has gained Rs.90 (or 5.25%) per bundle of 10 lb in the past week.
Export prices have also begun rising in dollar terms, with benchmark 20s carded cotton yarn being up 1.1%.
The new buying interest by the Chinese customers should continue supporting the yarn prices in Pakistan in the coming days.
The cotton market indicator has also increased by 200 rupees to 8,800 rupees per maund, in line with the new rise of cotton prices on the international markets, in addition to the lack of domestic supply.
By contrast, polyester staple fiber prices have stayed unchanged for many weeks.
Benchmark 1.4 denier fiber is still being offered at Rs.193 per kilo.
In the meantime, import offers have risen to more than US$1.2 per kilo from the Chinese suppliers, making foreign fiber more expensive for the importers.
Margins are still very high at domestic polyester plants, with no need to raise polyester prices in the coming period.
Polyester spun yarns are also not moving up, as a result.
At the same time, Poly-Cotton (PC) yarns have continued increasing on the Faisalabad and Karachi yarn markets with 20s PC yarn gaining Rs.2 (or 1.34%) per lb. over the last seven days.
Poly-Viscose (PV) yarns have however remained relatively stable in the past week.
Viscose staple and spun yarns did not move in the last seven days, after VSF import offers from the foreign countries have begun stabilizing in Pakistan.
Source: Emergingtextiles
