In the past week, the price of cotton yarn in Pakistan has risen again due to a sharp increase in domestic and foreign cotton prices. The price of 30-count carded yarn increased by 3.35%, and the export quotations of various counts were also generally raised. The reason was that the sharp increase in raw material prices led to shrinking profits of yarn mills and the recovery of Chinese market demand.
That week, Pakistan’s polyester-cotton yarn and polyester-viscose yarn rose again, with a smaller increase than other varieties. Cotton prices continue to rise to record highs due to a sudden reduction in the number of new cotton products on the market and an accelerated rise in international cotton prices. As a result, the Karachi spot price index jumped to 19,100 rupees per gross, a weekly increase of 3.24%.
Currently, Pakistan’s textile exports show signs of weakening, with export volume in December 2021 falling by 6% month-on-month. Moreover, entering January 2022, this downward trend will become more obvious, indicating that the demand for cotton yarn by downstream companies will begin to weaken in the future.
That week, cotton prices in India reached a new high, and cotton yarn prices continued to rise driven by domestic and foreign demand. Due to tight cotton supply, cotton prices rose 1.8% in a single week.
According to CAI forecasts, cotton production this year is reduced by 3.5% month-on-month, but consumption has increased, and ending stocks are expected to drop by 37%. According to USDA forecasts, consumption this year will increase by 30% compared with the low point in 2019/20.
As cotton prices hit new highs, spinners further raised cotton yarn prices. 30-count combed yarn increased by 1.15%, a cumulative increase of 7% in the past four weeks, 40-count combed yarn increased by 4% in the past four weeks, and 40-count combed organic yarn increased by 4.6%. %.
During the same period, India’s domestic polyester staple prices rose, driven by crude oil and international market prices. In the future, the prices of polyester-cotton yarn and pure cotton yarn are expected to increase further due to the general increase in raw material prices. At present, the overall demand from Indian downstream processing plants remains strong. The price of viscose yarn remains stable, and the price of polyester and viscose yarn has no change.
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