Member ID:
Stay logged in for 30 days
Pls change your password according to new rules.

login CCFGroup App

Insight | Time: Nov 25 2022 11:06AM  Editor:Elsa
Pakistani cotton yarn exports hit new low in recent ten years
Text size

1. Pakistani textile and apparel exports continue to move down in Oct, 2022



Pakistani textile and apparel exports slipped greatly recent months instead of sharp increase in the first half of this year. In Oct 2022, Pakistani textile and apparel export value hit new low and reached $1357 million, down $170 million compared to last month. The lack of orders in South Asia gradually showed. The exports value of knitted fabrics and beddings reduced mostly dramatically, and both declined almost $100 million on month. Meanwhile, not only textile and apparel exports in end market shrank, but the export demand for commodities like yarn and fabric also weakened. In comparison, Pakistani import value rose to about $320 million, up 9% on month in Oct.

2. Pakistani raw cotton imports reached 47.8kt in Oct 2022



More demand for imported cotton was still the main reason for the increase of Pakistani textile and apparel. Pakistani cotton imports rose to 47.8kt in Oct 2022, up 14.7% on month. Since this year, the data of Pakistani contract with US, Australian and Brazilian cotton was great. The reduction of cotton production caused by disaster made Pakistani cotton prices not as expected, which also caused high-priced Pakistani cotton yarn price. The operating rate of Pakistani mills was still below 50%.


3. Pakistani cotton yarn exports reached 13.2kt in Oct 2022

Pakistani cotton yarn exports reached around 13.2kt in Oct 2022, down greatly by 8.3kt on month. The exports only accounted for 41% of the same period last year, and were even lower than the lowest point of 16.2kt when epidemic broke out in 2020. The averaging monthly exports hit new low in recent decade. At present, Pakistani yarn still accounted for around 50% in Chinese market. However, the continuous epidemic in Guangdong, which is one of the main consumption places of siro-spun yarn, brought much pressure to downstream digestion of siro-spun yarn since mid-Oct. Meanwhile, imported siro-spun yarn sales were much harder amid the competition with low-priced Chinese one. Besides, some apparel brands in Europe released trace requirement to save procurement cost, making high-cost imported Pakistani siro-spun yarn lack support in the future market.


4. Conclusion

As expected at previous stage, Pakistan textile and apparel exports were in negative growth in Oct amid the reduction of export value for consecutive several months, which means the benefit of the orders that were transferred from China to South Asia basically diminished. The markets including Europe faced large pressure of destocking apparel, and the slip of consumer鈥檚 procurement capability made apparel orders continue to shrink. The exports of yarn, knitted wear and beddings in Pakistan were slack. Meanwhile, the shrinkage of new season actual cotton production in Pakistan may reach 50%. In the future, Pakistan鈥檚 cotton textile industry will rely more on imported cotton.

[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Related Articles
No related data!
To "survive" become main short-term goal of chemical fiber ...
Imported cotton yarn becomes a hot potato: Will the market ...
Polyester market short-term trend and industrial ...
China home textile market operation analysis in H1, 2022
End-user demand changes before and after the COVID-19
Virgin and recycled PSF market operation under high costs ...