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Pakistan Yarn Prices: Domestic and Export Markets

The yarn market in Pakistan remains dominated by the shift to a new taxation system, as of July 1st. Cotton prices have begun falling whereas polyester and viscose were rebounding, our correspondent reports.

– From our Pakistan Correspondent Ahmed Fayz

Cotton yarn prices have remained relatively firm in the last seven days on the domestic market in Pakistan, ahead of the new fiscal year.

Market participants were busy managing their inventories before the beginning of the new taxation system, as of July 1st.

As a result, business activities have intensified on the Faisalabad and Karachi yarn markets.

Demand, however, could rapidly disappear in the coming weeks before participants will digest the new taxation system.

The price offers have remained unchanged on the export market after a sudden fall in the previous week.

In the last six months, unit values have significantly dropped in dollar terms for all export products, due to a sharp fall of the rupee.

Benchmark 30s carded has lost 11.31% from its level a year ago, meaning that the impact of currency depreciation has been largely passed on to foreign customers.

Polyester Staple Fiber prices have last week jumped Rs.7 per kilo or 3.78%, over the new rise of import offers from the Chinese suppliers.

Benchmark 1.4 denier fiber has reached Rs.192 per kilo, after remaining depressed in the past period.

As a result, gross margins have slightly recovered at the domestic polyester plants, whatever the new rise of PTA and MEG prices on the international market.

Similarly, viscose fiber has also begun rapidly increasing in Pakistan after a surge of import offers from the exporting countries.

The VSF prices could continue rising in coming days due to the weakness of the rupee.

Poly-Cotton (PC) and Poly-Viscose (PV) yarns have also increased over the last week, in line with the new rise of their raw material costs.

The cotton price indicator has however dropped, as a result of the decline of the New York futures.

Source: Emergingtextiles