In the past week, Pakistani yarn mills have increased purchases and cotton prices have rebounded. Domestic yarn demand remains sluggish due to many uncertainties caused by the new tax regime.
The Pakistani industry is discussing with the government the implementation of the new tax system and figuring out how textiles will be taxed under the new sales tax. The price of 30-count carded yarn is stable and may start to rise in the next few weeks as buyers replenish their stocks.
Pakistan’s cotton yarn export demand has increased slightly, but the price has not changed. Domestic cotton prices have begun to rise sharply. The reason is a sudden increase in demand from spinners. This is not an active replenishment by spinners. , but to avoid being affected by transportation delays during Muslim holidays. Domestic cotton prices are likely to continue to rise in the next few days.
