The textile industry is Pakistan’s most important pillar industry and main export industry. When will it pick up? As an upstream raw material supplier, what is the current cooperation situation between Chinese textile companies and Pakistan?
Data from the Pakistani Bureau of Statistics shows that the Pakistani textile industry Exports in August were US$1.007 billion, down 15% year-on-year and 21% month-on-month. During the same period, data from my country’s General Administration of Customs showed that China’s exports of textile yarns, fabrics and products increased by 51.3% year-on-year in August 2020.
Polyester:
Pakistan manufacturers place concentrated orders in “retaliation”, shipping prices rise
“The supply exceeds the demand, and everyone is rushing to export.” Shi Qiwen, a salesperson of Fujian Jinxing Group, explained to the Economic Daily-China Economic Net reporter: “Export orders declined in the first half of the year It’s more serious. The recovery in the past two months has been relatively good, a little better than the same period last year. They (Pakistani manufacturers) may not have purchased for a long time, so they concentrated on placing orders.”
The picture shows Shi Qiwen, a salesperson of Fujian Jinxing Group, being interviewed by a reporter from Economic Daily-China Economic Net Economic Daily-China Economic Net Zhang Peng/photo
Shi Qiwen said that exports to Pakistan are mainly shipped by sea, and “retaliatory” centralized orders have also led to a shortage of flights and a sudden rise in sea freight prices. “There are more containers going out from the country and fewer coming back from abroad. The cost of shipping companies has increased, which will also increase the sea freight. In addition, the approaching National Day holiday is also one of the reasons for the increase in freight.”
Cotton yarn:
Based factory resumes orders from Europe 40-count and 60-count yarns are in great demand
Picture Huang Xifeng, sales manager of the import and export department of Litai Lion Dance (Taicang) Holdings Co., Ltd., was interviewed by a reporter from Economic Daily-China Economic Net Economic Daily-China Economic Net Zhang Peng/Photographed
Huang Xifeng, sales director of the import and export department of Litai Xingshi (Taicang) Holdings Co., Ltd., said in an interview with a reporter from Economic Daily-China Economic Net that the situation has improved after July. “At present, there are many orders from Europe such as Turkey to Pakistan, especially for home textiles and white fabrics, so Pakistan’s demand for cotton yarn is still quite large, especially for 40-count combed compact yarn and 60-count combed compact yarn. The volume is very large.”
As for the quantity of cotton yarn exported to Pakistan, Huang Xifeng said: “For example, our company exports 40-count yarn to 10-20 countries in Pakistan a month. Each container contains 20 tons. Because the yarn of 60-count yarn is relatively fine, the production time is long and the output is relatively low. It can produce 500 or 600 tons a month, and basically half of it is exported to Pakistan.”
The sales staff at the booth of China Resources Textile (Group) Co., Ltd. also said that the high-count yarn produced by the company is mainly exported to Pakistan. Starting from July, orders have increased. Containers are sent to Pakistan every month in August and September, with an average of 1-2 containers a day, and each container carries 20 tons of cargo.
Viscose staple fiber:
It will improve from July to August and is expected to return to normal next year Normal level
The picture shows Hengtian Hailong (Weifang ) Xu Leilei, Sales Department of New Materials Co., Ltd., was interviewed by a reporter from Economic Daily-China Economic Net Economic Daily-China Economic Net Li Fan/Photographed by Li Fan
“European and American market terminals Consumption is not very strong, and Pakistan’s purchases have also shrunk significantly. Although quotations have been constant this year, the actual trade volume from January to August has shrunk by 70% to 80%. There are signs of improvement in July and August, but it is not expected to return to normal levels until next year.” Xu Leilei, Sales Department of Hengtian Hailong (Weifang) New Materials Co., Ltd., said in an interview with a reporter from Economic Daily-China Economic Net.
Spandex:
Export volume from January to August increased by 35% year-on-year, and Pakistani customers and Orders continue to increase
“From January to August this year, (the company’s) export volume increased by about 35% compared to last year, and is on an upward trend.” Lianyungang Du Zhongxin’ao Zhou Feiyan, marketing manager of Shen Spandex Co., Ltd., told Economic Daily-China Economic Net reporters that the company currently mainly exports spandex yarn to countries such as Turkey, Pakistan, Mexico, and Bangladesh. In April and May this year, the impact was still relatively large. “But our downstream customers are also relatively loyal customers, so we can maintain such a sales volume.”
The picture shows Zhou Fei, marketing manager of Lianyungang Duzhong Xinaoshen Spandex Co., Ltd.�� (right) and export salesperson Mao Meng (left) were interviewed by Economic Daily-China Economic Net reporter Economic Daily-China Economic Net Li Fan/Photographed
“About 20 tons are exported to Pakistan every month, and the number of customers and export volume is increasing every month.” said Mao Meng, export salesperson of the marketing department of Lianyungang Duzhong Xinaoshen Spandex Co., Ltd.
Pakistan’s textile industry gradually recovers
The demand for raw materials has surged
As both major countries in the textile industry, it is particularly important for China and Pakistan to explore complementary relationships in the textile industry. According to a recent report by Pakistan’s “Express Forum”, as the country’s largest export-earning sector, Pakistan’s textile industry has gradually returned to full production levels before the outbreak, and some foreign buyers have transferred textile orders to Pakistan.
Asif Inam, former vice-chairman of the All Pakistan Textile Mills Association (Apmta), believes that Pakistan’s textile industry as a whole is at a disadvantage compared with regional competitors. A more advantageous position. Due to factors such as the Sino-US trade war and the economic shutdown caused by the worsening epidemic in India, global buyers have transferred orders to Pakistan. It is expected that as exporting countries and regions, including Europe and the United States, recover from the epidemic, the number of export orders received by Pakistan will continue to increase. Secondly, the government’s support measures in terms of energy price subsidies, ensuring imports of raw materials, and providing preferential financing for expanding production and setting up new manufacturers played an important role in the rapid recovery of the industry.
Pakistan currently faces the arduous task of ensuring a stable supply of raw materials. The latest data from the Pakistan Bureau of Statistics shows that Pakistan’s cotton imports surged by 255% from July to August this year, with imports in August reaching US$67.43 million, a year-on-year increase of nearly 1,000%.
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