20000315

Petroleum products

price hikes push up

those of Pak cotton

SHAHID IQBAL

KARACHI: The increasing prices of byproducts of petroleum shifted load on cotton products which pushed Pakistani cotton up from 33 cents to 54 cents per pound.

The high prices could yield about 240 million US dollars for the country through export of raw cotton.

"Thailand is getting our cotton at 53 cents per pound. The region is facing shortage because of no export from China," said Wahid, a cotton exporter in Karachi.

In the last couple of months, the cotton prices increased from 33 cents to 54 cents in the world market.

Rapid increase in the consumption and bad cotton crop in China, also put pressure on cotton prices world over.

The exporters said that the polyester and viscose (petroleum byproducts) prices are going higher as the POLO prices have touched its peak in the first quarter of the year.

The present petroleum price which is 30.5 US dollar per barrel, is the highest in the petroleum history.

About 600,000 bales have been registered but due to Indian cancellation of contracts to import 150,000 cotton bales from Pakistan, about 450,000 bales have been exported.

The Trading Corporation of Pakistan which bought over 500,000 bales, still has more than 350,000 bales to sell in the world market. The TCP had sold about 150,000 bales to the foreign buyers.

"Bangladesh has offered about 54 cents per pound. The prices may go further high as the American cotton has touched 63 and 64 cents per pound," said Wahid.

Usually Pakistani cotton gets 8 to 10 cents less than the American cotton.

The exporters said that cyclic trend of the 'cotton use' changes its movement after every 3-4 years. This year world producers shifted their pressure from polyester and viscose blending to pure cotton products.

The ginners said on Tuesday that the cotton production will touch a total of 9.8 million bales by the end of the season. So far 9.6 million bales have been recorded.

"The textile millers have already bought about 8.6 million bales. The increased consumption needs another 400,000 bales for the textile industry. If we export 1,200,000 bales, there will be a shortage of 400,000 bales," said a textile miller.

The textile millers said that the total consumption will not be less than 9 million bales in the country.

The textile millers said that the shortage could not be met with the Central Asian cotton as the prices of their cotton crossed 60 cents per pound in the international market.