Cotton yarn export prices have begun more significantly increasing in the last days in Pakistan, reflecting a rebound in demand from China. Cotton yarn exports from Pakistan have been supported by sales to China in the last five years, as reflected by our export data per destination, in volume, value and unit value terms.
– From our Pakistan Correspondent Ahmed Fayz
Cotton yarn export prices have surged in the last seven days in Pakistan, due to a strong demand from China.
CNF price for the benchmark 30s carded has gained 3 cents per kilo over the weekly period, as a result.
Cotton yarn export prices could stay firm in Pakistan, ahead of the signing of the second phase of the Free Trade Agreement (FTA) with China, which will be effective from July 1st.
The new FTA will grant Pakistan a duty-free access to the Chinese market for all textile and apparel, including cotton yarns, cotton fabrics, woven and knitted clothing, and home textiles.
Even before the start of effective implementation, Chinese authorities have offered Pakistan to export an additional 350,000 metric tons of cotton yarns at zero tariff under a special arrangement.
The yarn prices have also remained relatively firm on Pakistan’s domestic market due to the rise of demand from the downstream textile makers.
Similarly, cotton fiber prices have begun further rising over a lack of available quantities from the domestic sources.
The benchmark KCA cotton indicator has gained Rs.50 per maund to Rs.8,850 per maund.
Poly-Cotton (PC) and Poly-Viscose (PV) yarns have however stopped rising, after remaining very firm over the past period.
At the same time, polyester staple fiber prices have been very stable at Rs.193 per kilo since January, although import offers for PSF have dropped to around US$1.18 per kilo, eliminating the price difference between domestic and foreign fibers.
Viscose fiber prices have begun rising in the last seven days, due the rebound of demand from the yarn makers.
Cotton Yarn Exports in 2013-18 per Destination
Whatever their rise in rupee terms, cotton yarn exports from Pakistan have fallen in volume and dollar terms in the full last year.
This is mostly due to a slight decline of exports to China which has still accounted for 68% of total shipments in volume terms, however.
Exports to Turkey have dramatically dropped, over a sharp fall of the lira, the Turkish currency.
After surging 87% in volume terms in 2017, exports to Turkey have plunged by 39% in 2018.
Shipments have continued slightly rising to Bangladesh, now the second destination of Pakistani cotton yarns after China.
The average export price has increased in dollar terms, after falling more than 10% in the previous year.
Export prices are far lower on China’s market, reflecting demand for lower counts lacking in China and forcing spinners in Pakistan in staying on the lower end of the market.
Source: Emergingtextiles
