Weakening Rupee and firming fibres push Pakistan yarns up
Pakistan yarn prices began moving up in weeks before the end of 2017 as imports prices surged and export opportunities opened up dramatically. Cotton yarn prices began moving up sharply on the domestic market, over a fresh surge in cotton cost in the past few weeks. Cotton import prices have also sharply increased due to the surge of international prices and the fall of the PakRe. The double impact of rising international prices and weakening Rupee was very favourable to yarn makers. However, demand is expected to weaken in the coming weeks while export markets are usually weak in this period of the year.
Polyester yarn prices were hiked 3% after PSF offers were lifted 1.5% last week. Polyester-cotton prices were also on the rise having risen more sharply than 100% cotton yarns in the week of 22 December, reflecting a stronger demand in addition to the surge of raw material cost. PV yarn markets were quiet, and prices generally rolled over, but weak currency pegged numbers down in US$ terms, which can boost exports later.
32s cotton combed yarn rose PakRs2-5 to PakRs145-162.50 per pound (US$2.89-3.24 a kg, up US cents 2-8) in Faisalabad while finer count 40s was also traded up at PakRs158-190 per pound (US$3.15-3.79 a kg, up US cents 2-3). Export prices were seen rising US cents 3 across specs this week. Polyester yarns prices were lifted PakRs 3 in Karachi with 20s to PakRs114 per pound (US$2.27 a kg) and 30s at PakRs125 per pound (US$2.49 a kg), both up US cents 5 on the week. 30s PC yarn prices were up at PakRs113-140.39 per pound (US$2.25-2.80 a kg, up US cents 1-2) in Faisalabad while 38s rose PakRs12 to PakRs122-149.48 per pound (US$2.43-2.98 a kg, up US cents 23).
Viscose yarn prices rolled over for the fifth consecutive week in line with the stability in VSF cost. This implies no change in market sentiment while falling PakRe will lift export opportunity. 35s was traded at PakRs138 per pound (US$2.75 a kg) and 40s at PakRs142 per pound (US$2.83 a kg), both down US cents 2 due to drop in currency. PV 20s yarn prices rolled over at PakRs109-116 per pound (US$2.17-2.31 a kg, down US cent 1 due to weak currency).
SOURCE: Global Markets Weekly Review
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