2 August 2011
Cotton prices more heavily fell in India and Pakistan in July than in China. Polyester prices stabilized everywhere in the meantime, with China finally regaining its traditional price advantage with its polyester fibers.
Cotton prices continued heavily falling in July on domestic markets of the three largest textile producing countries.
In China, benchmark 328 grade lost 9.8% at 22,065 yuan per metric ton (155.88 US cents per lb), on average.
In India, benchmark Shankar 6 was down 18.63% at 33,591 rupees per candy (95.31 cents per lb).
In Pakistan, benchmark spot rate of the Karachi Cotton Association (KCA) even dropped 26.22% at 6,304 rupees per maund of 37.32 kilos.
Compared with a year earlier, cotton prices were still up 20% in China in July, while only rising 14% in India and even down 4% in Pakistan, in local currency terms.
Finally, cotton prices are increasingly lower in India and Pakistan, if compared with China.
On the polyester market by contrast, staple fiber prices fell 2.2% in July in China, while unchanged in India and rising by 1.2% in Pakistan.
PSF prices everywhere stabilized in the past two months, still remaining at significantly higher levels than a year earlier.
The price difference remains therefore negligible between the three countries, as India and Pakistan have no advantage over China on the polyester market.
When considering long-term data, PSF prices have however more significantly risen over the past four years in Pakistan and India than in China.
Polyester prices finally returned to a higher level than cotton prices in India and Pakistan while remaining considerably cheaper in China.
PSF prices were 43% below cotton prices in July in China while they were 1% above cotton prices in India and Pakistan, if only considering the benchmark indicators.
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