11 December 2012
Cotton yarn prices are now sharply rising in Pakistan over stronger demand from domestic and foreign markets added to tighter supply, our Correspondent reports. Our monthly review covers the cotton and polyester-cotton yarn markets in Karachi and Faisalabad, with a series of tables, charts and historical data back to 2007.
Cotton yarn prices are now increasing on Pakistan’s domestic market owing to a recovery in demand from the downstream processors and higher level of cotton fiber prices.
There is also tighter supply, due to energy shortages. Spinning plants are reasonably booked for coming periods in addition, providing support for higher level of yarn prices.
Market activities however remained slow as buyers are waiting for market stability at lower prices.
Spinners are satisfied with current price levels, with their margins further increasing. A lesser amount of export sales was reported in the last week as foreign buyers are now wrapping up for Christmas holidays, and this should put pressure on the yarn rates on domestic market.
Cotton yarn counts of 10s, 12s, 16s, 20s, 30s carded and 40s combed weaving yarns were in good demand in the previous weeks.
Price of fine count yarns of 60s and 80s combed were also firm with limited trading activity.
Polyester prices are now getting stable at current level after a lower import offers from China and the Far East and a decrease in feedstock prices.
This should brought stabilization in the Polyester-Cotton (PC) and CVC blended yarn prices, which rose more rapidly than cotton yarn prices in the previous period.
Normal level of sales was reported for PC and CVC yarn counts of 7s, 10s, 12s, 14s, 16s, 20s, 24s, 30s, 40s carded.
Faisalabad market remained stable and limited business was report in 24s, 31s, 38s and 72s PC counts.
Market participants expect stable market sentiment in coming weeks with no major change in the yarn rates.
Cotton fiber prices are no more increasing due to a shift to imports from Indian and US markets.
Benchmark Karachi Cotton Association (KCA) spot rate was maintained at Rs.5,850 per maund of 37.32 kilos.