Pakistani yarn mills were very active in purchasing domestic and imported cotton last week. Domestic cotton prices have risen to 65-67 cents, and some varieties are more expensive, stimulating yarn mills to increase their investment in imports. Cotton purchasing.
As of September 15, Pakistan’s new cotton market volume was only 1.0352 million bales (170 kg/bag), a year-on-year decrease of 818,200 bales. Textile mills believe domestic output is significantly lower than expected and quality is also a concern. Cotton farmers are reluctant to spend extra money to control pests and other problems.
At this stage, Pakistani textile mills mainly import Brazilian cotton in 2019 and 2020, and it may become the country’s largest import variety in 2020/21. Both high and low grades of Brazilian cotton were traded, including SLM1-3/32. The basis difference of cotton in 2019 and 2020 was 150-175 points and 250 points respectively. In addition to Brazilian cotton, East African cotton, Argentinian cotton, West African cotton, Sudanese cotton, Pima cotton, and Egyptian Giza series are all traded, and American cotton is mainly a special price variety. Overall, the current demand for spot goods from Pakistani textile mills is recovering, and price is the main driving force.
At the same time, as China’s demand for 8-10 count yarn expands, Pakistani cotton yarn exports to China have also begun to increase, and the price is very cheap. The main source of low-grade cotton in Chinese textile mills is reserve cotton. With the end of the rotation, the demand for low-count woven yarn from denim companies in Guangdong has increased significantly. In addition, woven yarn is exported to China without tariffs, so the export of woven yarn to China is unimpeded. </p
