Recently, the Chinese textile market has shown positive trends, which could be considered a good omen for Pakistan’s cotton exports to be rehabilitated.
The Chinese market was one of Pakistan’s main export destinations for cotton. However, cotton exports in Pakistan have been depressed since April, due to impacts caused by COVID-19.
Gwadar Pro citing a China Textile News report on Monday stated that various Chinese textile and garment market economic indexes were picked up in May.
The study analyzes that while the retaliatory consumption following the COVID-19 epidemic has not yet arrived, Chinese textile merchants have successfully changed the strategies and realized a gradual market recovery.
Another report published by China Cotton Net analyzes that the emergence rate of cotton in Pakistan will be lower than forecast 8 million packs (170 kg / pack) due to the cotton early planting affected by locusts. In addition, cotton demand is expected to recover after Eid in June, and the blockade is gradually lifted.
Compared to the Chinese market, Western market demand is expected to continue to be depressed. A global supply and demand forecast for cotton was reported by the United States Department of Agriculture (USDA) on 13 May.
The forecast shows that the volume of US cotton imports was expected to be as 0.2, the EU index is 13.3 and the expected volume of Chinese imports is 206.8.
Domestic consumption is another essential indice published by USDA. The expected domestic cotton consumption in US, Eu and China is 63.1, 14.4 and 827.4 respectively.
Salim Ghori, who has worked in denim industry for 25 years, said: “There is a huge chunk of textile being exported to Western nations.”