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Pakistan cotton yarn export price stability china-pakistan free trade agreement creates opportunities

Apr 26, 2019

In the past week, Pakistan cotton yarn prices rose slightly, domestic demand is still strong, export prices are supported by Chinese demand.

Domestic cotton prices rose mainly because of active demand and currency devaluation.

During the week, Pakistan cotton spot price index remained stable, cotton yarn export prices unchanged.

But prices are likely to continue to rise in the future because of strong demand for Chinese imports.

Under the china-pakistan free trade agreement, China allowed Pakistan to export another 350,000 tons of cotton yarn to China without tariffs, instead of the previous 3.5 percent.

In addition, the two sides have reached agreement on the second phase of china-pakistan free trade agreement. Pakistan can continue to export textiles and clothing to China with zero tariff, including cotton yarn, cotton cloth, woven and knitted garments and home textile products. The second phase will be signed in the last week of April this year and will last until July 1.

During the week, Pakistan blended yarn and polyester viscose yarn prices were firm, 1.4d polyester staple fiber prices did not change, and the trend is consistent with the import price.

Viscose staple may bottom out in the future due to increased seasonal demand.