In the past week, Pakistani downstream enterprises have experienced strong demand, domestic yarn inventories have been tight, and cotton and yarn prices have continued to rise. To this end, the government is considering liberalizing the import of cotton and cotton yarn from India.
That week, Pakistan’s 30-count carded yarn rose by 7.41%, and the export quotation did not change. The reason was that the previous increase was too large, which led to European buyers being unwilling to accept it. The prices of polyester-cotton yarn and polyester-viscose yarn increased slightly due to the increase in raw material prices.
Due to the sharp reduction in domestic cotton production, the price of cotton in Pakistan rose to a 22-month high on March 3, reaching 12,000 rupees/maund, setting a record high. That week, the spot price in Karachi increased by 4.27%, but the price of imported cotton fell by 0.95 cents/pound. This year, Pakistan’s cotton output was only 5.6 million bales, the lowest in 30 years, and domestic consumption was around 15 million bales.
At the same time, Indian cotton yarn prices continued to rise, with polyester staple fiber rising by 7.5% and viscose fiber rising by 2.6%. As CCI sells a large amount of inventory, domestic cotton prices in India are expected to rise to higher levels. The rebound in China’s demand for Indian cotton also supports the rise in Indian cotton prices. </p
