18 May 2010
Viscose prices continued slightly rising in the past weeks in Pakistan. The yarn crisis is further affecting the business after the government imposed a tax on exports of most yarns, our Pakistan Correspondent reports.
Viscose Staple Fiber (VSF) prices in Pakistan were raised by Rs. 4 per kg to Rs. 274 per kg (+ 1.5%) during the last one month.
The increase in staple fiber prices was mostly due to the strong demand and the new rise in cotton prices on the domestic market.
Import offers were more stable at around US$2.75 to US$2.80 per kilo, CNF Karachi.
A few import deals were last week settled at US$2.77 per kg.
Import prices are likely to remain stable in the coming days, but a small change in prices may be observed on the domestic market, depending on the demand and supply situation.
Asking prices for yarns were slightly lowered in the last week on Pakistan’s domestic yarn markets.
Spinners reduced their yarn stocks, as a result of rising uncertainty over the restrictions in yarn exports.
They were expecting pressure on yarn prices after duties will be imposed on exports.
A reduction of about 3% to 4% was observed on the yarn market.
Value-added textile producers observed a strong strike on May 11th, holding rallies in Faisalabad, Karachi, Multan, and Sialkot to protest against yarn shortage on the local markets.
They requested a full ban on cotton yarn exports.
On May 13th, the government imposed a 15 percent regulatory duty on yarn exports, replacing the quota system which had been previously imposed.
Yarns made from imported cotton will be exempted from the new tax.
Protesting against the duty, Pakistani yarn producer association, APTMA announced a two-day strike every week, starting from May 17th.
All these developments are causing uncertainties on the yarn markets.
No clear price reduction was actually observed after the imposition of the export duty, but trading activity is weak.