India Pakistan Cotton Yarn Prices Fall Due To European Epidemic Blockade

In recent week, the price of cotton yarn in Pakistan began to fall. After the outbreak of the second epidemic in European countries, clothing sales fell again, affecting the demand for raw materials of Pakistan garment factories.

At the same time, the price of domestic cotton fell again, leading to the reduction of the price of cotton mills, and the price of 20 common Combed Yarns fell by 1.46%, but the export price was relatively strong, because of the low inventory of cotton mills.

In the past two weeks, Pakistan's cotton prices have fallen sharply, in line with the international market trend. Karachi spot price index has fallen by 6.93%, and the price of US cotton imports has dropped to 76.70 cents / pound.

Cotton prices in Pakistan are expected to remain strong for some time this year. The U.S. Department of agriculture forecasts that Pakistan's cotton production in 2020 / 21 will decrease by 19.3% year-on-year and 34% in two years. Therefore, cotton import is expected to increase by 50% in two years.

According to market feedback, Pakistan's production is said to be as low as 1.2 million tons, and it needs to import 1.3 million tons to meet domestic demand. By the end of January, 500000 tons have been signed, so the demand will continue to increase in the later part of the year.

In the latest week, Indian cotton yarn prices fell for the first time in three months, and the second European epidemic blockade has impacted India's textile production and sales. The cancellation of export orders led to a decline in cotton and cotton yarn consumption.

Indian cotton yarn export price fell, 30 combed yarn fell to $2.96/kg, cotton price remained stable. This year, India's cotton production decreased by 1%, although the planting area cried, but excessive rainfall and insect pests led to a decline in cotton yield.