Cotton yarn prices have stopped rising in Pakistan or have even started dropping for specific products, in line with the decline of cotton fibers on the domestic and international markets. Polyester staple fiber prices have also begun sliding on the domestic and import markets.
– From our Pakistan Correspondent Ahmed Fayz
Cotton yarn prices have remained unchanged or have even begun to decline in the last seven days in Pakistan, in line with a drop of cotton prices on the domestic and international markets.
Benchmark KCA cotton indicator has lost Rs.150 per maund or 1.68% in the last seven days, retreating from a record level.
At the same time, demand for yarns has stayed very strong from the downstream textile producers, due to a lack of available quantities.
Poly-Cotton (PC) and Poly-Viscose (PV) yarns have however stopped rising, after a drop of the material costs.
Similarly, the yarn prices have also begun falling on the export market, following a sudden jump in price offers in the previous period.
A sharp rise of buying interest from the Chines customers had earlier pushed up the yarn export prices in Pakistan.
Polyester staple fiber prices have also begun dropping in Pakistan, in line with a sharp fall of MEG prices on the international markets.
Benchmark 1.4 denier polyester has lost Rs.3 per kilo or 1.55% to Rs.190 per kilo.
Import offers from the Chinese suppliers have even dropped more significantly to around US$1.14 per kilo.
As a result, foreign fibers have become cheaper compared with the domestic PSF, which is unusual in Pakistan.
Margins at polyester plants have slightly dropped in the last seven days, whatever the new fall of PTA and MEG prices.
By contrast, viscose staple fiber prices have continued climbing on the domestic market in Pakistan due to stronger seasonal demand.
Import offers from the exporting countries have however begun sliding, meaning that margins of the yarn suppliers have been increased, as a result.
Source: Emergingtextiles
