In the past week, the demand for Pakistani cotton yarn has remained sluggish and prices have continued to fall. This is due to the many problems caused by the new tax system and the decline in cotton yarn exports to Europe. The recovery of Chinese orders has not been able to save it.
At present, Pakistani textile companies have still not adapted to the new tax system, and 30-count carded yarn fell by 1.98% within a week. Export prices have been relatively stable due to strong demand from Chinese buyers.
Polyester-cotton yarn and polyester-viscose yarn fell by 1-2 rupees/pound, which was consistent with the trend of raw material prices. The new tax regime will have a greater impact on these two yarns because of limited foreign demand for such yarns. Affected by this, Pakistan’s domestic demand for blended yarn remains sluggish.
In the same period, the price of polyester staple fiber in Pakistan also fell sharply due to reduced demand and falling prices of imported Chinese polyester staple fiber. 1.4D polyester staple fiber fell by 2.6%, with a cumulative decline of 7.43% in the past four weeks. The price of imported Chinese polyester staple fiber fell to US$0.0/kg and may fall further in the future.
At the same time, the profits of Pakistani chemical fiber manufacturers have dropped to a low point, the operating rate has dropped, and the manufacturers will maintain their existing quotations. The price of viscose staple fiber fell with the import price, and the price of imported viscose staple fiber was US$1.48/kg.
