Yarn market turns sluggish due to floods

Faisalabad—Yarn market appears down as real buyers are missing. Its main reason is flood and damage to main roads between Khyber Pakhtunkhwa, Punjab and Sindh. Dullness was seen on the yarn market, in the absence of proper interest by both the buyers and sellers. In the local yarn markets where rates of almost all the yarn brands and counts have gone down by four percent during the last 15 days. Due to flood the crisis is back on the cotton market with prices soaring to excessively high levels. This is triggering a rise in yarn prices in China, India and Pakistan, although less dramatically, as many spinners previously covered their raw material needs at lower prices. China is apparently getting a competitive advantage.

According to Ex Central Chairman All Pakistan Yarn Merchant Association Muhammad Ashraf Gandhi, the business activity was at its peak, but entire market was ruled by flood. Load shedding and increase in electricity and gas rates main reason of increase in the rate. Now in future market would be disturbed due to shortage of cotton. He expressed his views in connection with the damage to the cotton crop as a result of floods.

Cotton prices have shot up seven percent from September 6, in two week, propelled by talk that India has decided to delay cotton export of the to Pakistan. The Indian dealers constantly increasing prices of cotton and now demanding 98 cents per pound. Earlier, they were selling cotton for 78 cents. But new crop that will be harvested in November and December, Indian exporters are demanding even more: $1.05 per pound. “its panic in the market Cotton imports from India cost Rs 9,300 per maund. Cotton yarn export prices remained very firm in the past weeks in Pakistan but did not rise further, as foreign buyers expected a decline in the coming period and refrained from ordering. Polyester yarn prices did not move in the past two weeks here, while the textile production was deeply affected by devastating floods. The situation is however improving, although still far from normal.

Meanwhile, the chairman, All Pakistan Cotton Power looms Association (APCPA), Rana Muhammad Ikhlaq, has demanded steps from government to control cotton yarn prices immediately other wise price hike in future and value added sector exclusively power looms sector totally collapse.

He said that after the increase in the prices of cotton yarn, a number of small power looms units had reached on verge of closure because the exporters were not in a position to purchase cotton yarn from the market at heavy prices to fulfil their export orders. He demanded of the government to immediately impose a ban on the export of cotton to stabilise its prices and to reduce the export of cotton yarn. Chairman PTEA Khurram Mukhtar said now that leading European countries have shown willingness to accord duty free access to Pakistani exports to mitigate the trying circumstances tightening the economic viability of Pakistan. It is high time that Pakistani commerce minister and textile minister and secretaries of these ministries to visit European countries which were expressing reservations in granting duty free market access to Pakistani exports. Yarn markets and Value Added sector sources said The Government immediately ban yarn and cotton exports for further hike in cotton and yarn prices and reduction in quantity in Pakistan.—Agencies