Cotton yarn prices have been further raised in Pakistan, over a rebound of cotton fiber prices on both domestic and international markets. Polyester prices have begun dropping by contrast.
– From our Pakistan Correspondent Ahmed Fayz
Cotton yarn prices have begun more sharply increasing on Pakistan’s domestic market, in line with a new rise of cotton fiber prices in the country.
Benchmark indicator for cotton has gained Rs.150 per maund in the last seven days, over a rebound of the New York cotton futures.
Due to a new cotton deficit this season, spinners need currently importing cotton, as domestic stocks are being rapidly depleted.
The sharp depreciation of the rupee in the past week has however resulted in higher cotton import prices in local currency terms.
As a result, cotton yarn prices have moved up on the domestic market.
20s carded has gained Rs.50 per bundle of 10 lb., or 2.76%, in the last seven days.
The cotton yarn prices have however remained unchanged on the export market, thanks to a relatively stronger demand from Chinese customers.
Lower polyester prices
Polyester staple fiber and spun yarn prices have begun falling in Pakistan, in line with the sharp decline of PSF prices in China.
Benchmark 1.4 denier fiber has lost Rs.5 per kilo to Rs.185 per kilo.
Import offers have sharply dropped to less than a dollar per kilo, making foreign fiber even more competitive compared with the domestic PSF.
Polyester producers could continue lowering their price offers in the coming days. Although margins have fallen at fiber plants, they are still relatively high with no need to cut operating rates.
Viscose fiber prices have remained unchanged in Pakistan, although import offers have been sharply lowered, as a result of a significant decline of VSF prices on the international market and also due to the fall of the Pak. rupee.
By contrast, Poly-Viscose (PV) yarns have been raised by Rs.1 per lb, over the rise of viscose fiber prices in the past weeks.
Source: Emergingtextiles
