At present, Pakistan’s domestic textile industry has fully recovered. Under the influence of the recovery of cotton prices, yarn prices have continued to rise in the past two weeks.
With the increase in demand from downstream enterprises, the price of cotton yarn in Pakistan has continued to rise in the past week. At present, textile and garment factories are close to full capacity. Textile and garment exports in July increased by 14.4% year-on-year, and textile exports rebounded significantly.
Affected by this, the domestic price and export price of Pakistani yarn have increased by more than 2% in the past two weeks. Although the overall price is still far lower than the same period last year, there is still potential for growth in the future.
At the same time, the price of cotton in Pakistan continues to rise, and the price of imported US cotton has risen to 72 cents/pound.
Currently, India’s domestic cotton stocks are being sold at low prices, and the profits of spinning mills have begun to improve. In the 2020/21 season, India’s cotton production is expected to increase significantly.
That week, market activities during the Indian holidays were restricted, and cotton yarn prices were basically stable. Affected by the decrease in the amount of cotton on the market last year and the fact that new cotton is far from being harvested, domestic cotton prices have maintained a strong momentum.
Recently, India’s state-owned stocks have been sold to domestic yarn mills and international cotton merchants at low prices. CCI’s total sales volume is no less than 4 million bales. India’s cotton production is expected to increase in 2020/21. USDA predicts that India’s cotton production will increase by 4.2% year-on-year and 15% within two years. The Cotton Association of India has also just raised its production for 2019/20. Therefore, even if India’s cotton exports increase, India’s cotton ending stocks will continue to increase.
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