Cotton and cotton yarn prices in Pakistan have continued to rise in the past week due to strong demand from garment factories and tight yarn inventories.
Led by clothing exports, Pakistan’s cotton yarn quotations rose by more than 2% that week. In November 2020, Pakistan’s textile and apparel exports to the United States increased by 25% year-on-year. The trade issues between the United States and China and Vietnam have benefited Pakistani fishermen.
Due to the surge in export demand, Pakistan’s domestic cotton yarn inventory is very tight, prompting sellers to significantly increase domestic and export quotations. Pakistan’s polyester-cotton yarn and polyester-viscose yarn also rose that week, and cotton prices continued to rise following international cotton prices. Karachi’s spot price index rose by 1.92%, with a cumulative increase of 9.8% in the past four weeks. The price of imported US cotton rose to 89.15 cents/pound. The increase reached 1.53%.
