Spun yarn prices have further declined in Pakistan, with demand weakening during the month of Ramadan. Yarn export prices have however not dropped, as demand from foreign customers remained strong. Polyester prices could eventually fall after Chinese PSF prices have heavily declined, our correspondent reports.
– From our Pakistan Correspondent Ahmed Fayz
Cotton yarn prices have continued declining on Pakistan’s domestic market, due to the fall of material costs and also due to a lower level of business activities in the month of Ramadan.
Cotton fiber prices have begun sliding over a sudden drop of New York futures triggered by US additional tariffs on Chinese imports.
The cotton indicator has lost Rs.150 per maund or 1.7% in the last seven days.
Demand for yarns has been relatively weak on the Faisalabad and Karachi markets.
Poly-Cotton (PC) and Poly-Viscose (PV) yarns have eventually stopped rising after climbing for a few months, as a clear sign that they could start declining in the coming days.
Cotton yarn export prices have not dropped, as demand is still very strong from the foreign customers.
Polyester staple fiber prices have remained unchanged at Rs.190 per kilo in the last seven days, whatever the sharp fall of import offers from the Chinese suppliers.
Foreign fibers are now far cheaper than the domestic polyester, as import prices have dropped to only US$1.09 per kilo for the Chinese PSF.
As a result, margins have climbed to a record level at the domestic polyester plants, also supported by the new fall of PTA and MEG prices on the international market.
Polyester producers could eventually reduce their price offers in the coming weeks in order to maintain their sales.
Viscose staple fiber prices have continued increasing, whatever the new decline of price offers from the foreign suppliers.
The VSF prices should remain firm in the summer season by historical standard.
Source: Emergingtextiles
