Polyester Fibre and Yarn Prices in Pakistan (Monthly Report) - Emerging Textiles

Domestic and Import PSF Prices. Blended Yarn Prices. PSF Capacities.

Polyester Fibre and Yarn Prices in Pakistan Monthly Report

1 December 2008

Polyester fiber and yarn prices are now declining in Pakistan, in line with a low level in demand from downward processors. The recent reduction in cotton prices and lower PSF import prices are also putting pressure on the market, our Pakistan correspondent reports. Rising uncertainties should result in lower prices in the near future.

- From our Pakistan Correspondent Ahmed Fayz

Polyester Staple Fiber (PSF) prices in Pakistan went down by Rs. 9/kg during November to Rs. 101/kg for 1.2 denier polyester fiber.

A further reduction in PSF prices is expected, due to the current slide in crude oil, PTA and MEG prices.

There is also downward pressure from the imported PSF and slower demand from the textile industry.

The gap between PSF and cotton prices has widened to US$ 0.3/kg, and this may force suppliers in lowering their rates in the short term.

Imported PSF is now being quoted at around US$0.92/kg, which is equivalent to about Pak Rupees 80-85/kg.

Anticipating New Declines

Trading activities on yarn markets are still weak in addition, due to sliding raw material prices and lower demand from yarn processors who are anticipating a further decline in yarn prices.

Increasing yarn inventories are putting pressure on the spinners who are trying to sell their inventories.

As a result, yarn prices were lowered by around 5% during November.

100% Spun Polyester Yarn Prices on Faisalabad yarn market dropped by 1-3%, while Polyester-Cotton (PC) blended yarn -both carded and combed - slipped by Rs. 5/lb during last one month.

On the Karachi yarn market, the price reduction was relatively less.

However, Polyester Filament Yarn prices on Karachi yarn market dropped up to 20 percent during the last one month.

Gas Company has started disconnecting gas supply to the textile industry in Punjab province as winters gets severe in the northern part of the country.

Electricity cuts are also expected to start during 1st half of December.