Chinese textile market has recently shown positive trends, going to get rehabilitated which could be considered as good omen for Pakistan’s cotton exports.
Chinese market has been one of the main export destinations of Pakistan cotton. However, since April, due to impacts caused by COVID-19, cotton exports in Pakistan have been depressed.
Gwadar Pro on Monday quoting a report of China Textile News stated that in May various economic indexes of Chinese textile and garment market have picked up.
The report analyses that though the retaliatory consumption after COVID-19 epidemic has not arrived yet, Chinese textile merchants have active adjusted the strategies and realized the gradual recovery of market.
Another report released by China Cotton Net analyses that due to cotton early planting affected by locusts, the emergence rate of cotton in Pakistan will be lower than previous forecast 8 million packs (170 kg/pack). Besides, cotton demand is expected to recover in June after Eid and the gradual lifting of the blockade.
Comparing with Chinese market, demand of Western market is expected as continue depressed. On May 13th, The United States Department of Agriculture (USDA) reported a global cotton supply and demand forecast.
The forecast shows that US cotton import volume was expected as 0.2, the index of EU is 13.3 and Chinese expected import volume is 206.8.
Another important index released by USDA is domestic consumption. The expected domestic consumption of cotton in US, Eu and China respectively are 63.1, 14.4 and 827.4.
Salim Ghori, who has been working in denim Industry for 25 years, said: “A huge chunk of textile is exported to western countries. due to Covid-19 it will have a huge impact on Pakistan’s balance of payment and we will be under huge crisis if this situation extends for a few months,”
“Our goods are exported to Western countries such US, UK, Italy, Spain, Germany etc. However, influenced by outbreak, there were plenty of export orders lost and the situation is very serious. There were many returns which led direct los s for our company,” said Ghori.