A Week Summary of India Pakistan Cotton Textile Market

A Week Summary of India Pakistan Cotton Textile Market
In recent week, with the recovery of Chinese demand, Pakistan’s cotton yarn export quotation rebounded. After the opening of the Chinese market, textile production has recovered somewhat, providing support for the price of Pakistan yarn, and the overall cotton yarn export quotation rose by 2-4%.

At the same time, under the condition of stable raw material cost, the domestic cotton yarn price in Pakistan also stopped falling and stabilized. Previously, the sharp drop in demand for foreign clothing brands had led to a sharp drop in the operating rate of Pakistan’s textile mills. The yarn output in October this year decreased by 27% year on year, and the export of Pakistan’s textiles and clothing fell by 18% in November.

Although the international cotton price rose and fell, the cotton price in Pakistan has been stable, and the spot price in Karachi has been stable at 16500 ruban/Maud for several consecutive weeks. The quotation of imported American cotton rose 2.90 cents, or 2.97%, to 100.50 cents/lb. Although the operating rate is low, Pakistan’s cotton output this year may be less than 5 million bales (170 kg per bale), and the cotton import volume is expected to reach 7 million bales.

In the last week, the price of Indian cotton continued to fall, due to the substantial increase in the number of new cotton on the market. The spot price of S-6 fell by 10 rupees/kg, or 5.1%, and has now returned to the lowest point since this year, consistent with the price at the end of October.

In that week, India’s cotton yarn export quotation fell 5-10 cents/kg due to poor export demand. However, the demand is expected to increase after the opening of the Chinese market. In India, the cotton yarn price has not changed, and downstream demand has warmed up. If cotton prices continue to fall and yarn prices remain stable, Indian yarn mills are expected to improve their profits.