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Domestic and Import PSF Prices. Blended Yarn Prices. PSF Capacities.
Polyester Fibre and Yarn Prices in Pakistan Monthly Report
22 November 2011
Polyester fiber prices are more strongly falling in Pakistan, in line with the decline in PSF prices in the Far East. Yarn prices are less heavily dropping, however, as reflected by the report from our Correspondent, covering the yarn markets in Karachi and Faisalabad, for spun polyester and polyester-cotton yarns.
- From our Pakistan Correspondent Ahmed Fayz
Polyester Staple Fiber (PSF) prices this week fell to Rs.160 per kilo for 1.4 Denier on Pakistan’s domestic market, due to a decline in demand from spun yarn producers and a lower level in cotton fiber prices.
Polyester Market
The PSF/Cotton spread however remains in a positive territory, by contrast with the situation six months ago when cotton prices were unusually higher than polyester prices.
Tight supply on the staple fiber market is currently limiting the decline in PSF prices.
In case cotton fiber prices would fall below Rs.5,000 per maund of 37.32 kilo, PSF prices may be again lowered, according to market participants.
Import offers for PSF also fell from China to around US$ 1.48-1.50 per kilo and from Korea to around US$1.60-1.62 per kilo CNF Karachi.
Demand for fibers remains usually weak in this part of the year because apparel producers are busy shipping Christmas orders.
Next US/EU clothing orders will come after the holiday season is over and demand for fibers and yarns will then pick up again.
Spun Yarn Market
With trading activities remaining slow on the yarn markets in Pakistan, price offers were lowered by 3-5% in a week.
Yarn processors are placing limited orders for their day to day requirements.
Yarn inventories fell in the past week, as a result.
Polyester-Cotton (PC) yarn counts of 12s, 16s, 20s, 30s, 38s, and 40s carded remained relatively active on the Faisalabad yarn market.
There are spreading rumors about a 90-day period of gas shortages in the coming winter season.
This could limit yarn production and maintain prices at higher levels than expected.
Pakistan and India are currently engaged in a trade normalization process, with an agreement to return to normal trade ties (MFN status) by the end of 2012.
Spinning industry in Pakistan is encouraging trade talks which should result in easing cotton imports from India and yarn exports to India.
Cotton Market
Trading on the cotton fiber market is slowed down by the anticipation of lower prices, in line with larger arrivals than last year at ginneries.
The fall of New York cotton futures also depressed the cotton market in Pakistan.
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