In the past week, the price of cotton yarn in Pakistan continued to fall, and China’s import demand dropped significantly. At the same time, falling prices of imported cotton supported yarn mill profits.
At present, it is difficult for Pakistani yarn mills to resume production, and domestic cotton yarn prices continue to fall. Due to insufficient demand from domestic downstream cloth and clothing manufacturers, 30-count carded yarn fell 0.8% in a single week. However, the drop in raw material prices prompted the spinning mills to lower their yarn prices, but they soon refused to sell at lower prices.
Although ICE cotton futures have continued to rebound recently, the price of imported US cotton has fallen by 20% since January, currently 67.81 cents/pound. Although there are few spot transactions, the spot price index in Karachi, Pakistan has been stable at 8,800 rupees/morund (about 37 kilograms) for several consecutive weeks.
As China’s cotton yarn consumption decreases, Pakistan’s cotton yarn exports have declined in recent weeks, and early orders have been cancelled. Therefore, cotton yarn prices in Pakistan are likely to remain under pressure in the coming weeks.
