China Pakistan FTA Drives China'S Demand For Pakistan Yarn Exports Up Sharply

In recent week, domestic cotton yarn prices in Pakistan continued to decline, consistent with the short price trend of cotton and polyester at home and abroad. By contrast, the export quotas of Pakistan are rising due to China's demand driven by the SINO pakistan FTA agreement. In the week, 30 of Pakistan's combed yarn fell 1.48%, and nearly 4.32% declined nearly four weeks ago. Domestic demand for yarn is sluggish overall, and market turnover is rather sluggish. At the same time, the export price of Pakistan increased, driven by strong import demand from China and Europe. Chinese buyers are in great demand for the spot shipment before the Spring Festival.

The second phase of the SINO pakistan FTA agreement comes into effect in January 1, 2020, when Pakistan's textiles and clothing, including cotton yarns, will be exported to China for zero tariff. Affected by this, the export price of Pakistan yarn has risen by 2-3% in the past week. Pakistan's domestic cotton prices remain in a doldrums. Because of the shortage of high-grade cotton in China, the cotton mill is not interested in the purchase of domestic cotton. The spot price index in Karachi fell to 8900 rupees / Maud.