31 March 2016
Spun yarn prices are rising in Pakistan, as a result of higher polyester prices and a rebound in demand from textile mills. Yarn sales are weaker on export markets, by contrast. Our new weekly report offers a comprehensive view of the domestic and export yarn market in Pakistan, with cotton yarns, polyester-cotton, polyester-viscose, polyester spun and viscose spun prices being covered. All these weekly data are available for download over a 12-month period.
Cotton and polyester-cotton (PC) yarn prices are now increasing on Pakistan’s domestic market, due to a recovery of demand from the downstream textile industry, especially the home textile producers.
The surge is more visible with poly-cotton yarns which are being supported by a new rise of polyester prices. PSF prices have increased 8 rupees per kilo or 7.6% in the last four weeks.
Larger sales of yarns and fabrics have been reported in the past weeks, although prices have been raised.
Textile producers have purchased large quantities of yarns for the coming period needs, in anticipation of higher prices in the short term.
On the Faisalabad yarn market, polyester-cotton yarn prices have also been firm, after they have been raised by 2-3% in a week.
Business activities are expected to remain strong and PC prices could further increase 1% to 2% in the coming weeks.
On the yarn export market by contrast, a relatively weaker demand has however been reported, as customers were more interested in getting discounts.
The suppliers are however resisting, thanks to the rebound in domestic demand.
Chinese customers continue booking small orders for coming month deliveries, but many of them are also looking for discounts on current price levels.
European customers are more interested in buying Mélange, double yarns and organic yarns at higher prices. Demand should increase in coming weeks.
Gas supply to the spinning and processing plants has been restored, this could result in higher operating rates and improve production at yarn processing plants as well.
Demand and prices have slightly risen on Pakistan’s domestic cotton market as a result of the recovery in yarn sales.
The largest spinning mills prefer however importing cotton from China and India due to quality concerns on the domestic market.
Benchmark Karachi Cotton Association (KCA) official spot rate has rebounded to Rs 5,300 per maund of 37.32 kilos.
Polyester Staple Fiber (PSF) prices are now more rapidly rising in Pakistan after the import offers from China have rebounded to US$0.96 per kilo, CNF Karachi.
Benchmark 1.4 denier fiber further gained Rs.1 to Rs.114 per kilo in a week and is expected to remain firm in coming days.
A lack of demand for polyester fibers is persisting in Pakistan, which is being reflected by a decline in the level of imports to 3,900 metric tons in the past month, due to the surge of imports of polyester blended yarns from the Far East.
More data are available on a weekly and monthly basis about the Yarn Market Prices: