Pakistan: Delisting of buyers has caused yarn prices to plummet

The largest yarn market in Faisalbad, Pakistan is now experiencing a catastrophe due to the decline in textile exports and the interruption of energy supply. Following the closure of a large number of textile manufacturing factories, the sales of silver yarns also plummeted by 80%.
According to a yarn trader, due to the withdrawal of buyers from the domestic market, traders are forced to turn yarns for overseas export. Due to the interruption of energy supply, many textile factories closed down, and millions of rupees were thrown into the market.
Due to reduced demand and lack of new orders, textile and weaving companies have closed down one after another, and capital transactions have been interrupted.
It is reported that the yarn market generally supplies raw materials to enterprises such as loom factories, textile manufacturers, and knitwear manufacturers. However, the interruption of energy supply five days a week has forced many factories to close. In addition, the export of domestic cotton yarn will cause a shortage of value-added industrial raw materials in the domestic market in the future, which will affect the industry's operating income. Loom owners are also worried that unfavorable factors such as power outages and restrictions on power usage will increase production costs.
Pakistan Yarn Merchants Association stated that the above factors have basically destroyed the domestic yarn market, and currently only commodity exporters are providing a buffer for related trade. It is understood that yarn prices are mainly determined by the export market and domestic spinning business needs.
Although Pakistan's domestic market is turbulent, commodity prices in the international market remain high. Yarn exporters stated that in order to encourage the demand for Pakistani cotton yarn in the international market, the government should educate farmers and spinners on quality improvement, industrial upgrading, packaging, trademarks, inventory and other professional knowledge. Because the improvement of raw cotton quality can not only reduce production costs and garbage raw materials, but also help spinners to produce high-quality cotton yarn to promote the growth of export income.