At present, cotton yarn production in Pakistan is slowly recovering, and a few yarn mills have begun to resume work. The reduction in output has provided support for yarn prices. Although demand from weaving mills has decreased, domestic sales and export prices of cotton yarn have remained strong in the past week.
Pakistan’s sudden blockade has resulted in insufficient supply of raw materials for textile mills. The government has allowed some textile mills to continue production and complete immediate demand orders at home and abroad. The operating rate of Pakistani factories will rise to 40% in the next week. As more companies resume operations, cotton yarn prices may fall sharply.
At the same time, the price of cotton in Pakistan has not changed. Due to the low international cotton price, textile mills continue to focus on purchasing imported cotton. It is reported that Pakistani cotton mills have purchased more than 100,000 tons of imported cotton in March, mainly American cotton, Brazilian cotton, and Mexican cotton. When textile mills fully resume operations, Pakistan’s demand for imported cotton will further expand.
