Recovery and subsequent rise in crude oil price has been positive development for the synthetic yarn manufacturers in the country. Synthetic yarn producers have increased their product prices almost by 6-7 per cent over the last three months, thereby increasing significantly their profit margins. A jump in cotton yarn prices was also seen following a similar trend as synthetic yarn. Demand for synthetic yarn has been increasing due to changing consumer preferences for active sportswear and smart fabrics in domestic apparel market. Cotton exports are under severe pressure as domestic price of the staple has outpaced the global benchmark price, thus creating a pressure on the cotton manufacturers. However, seasonal demand of yarn and improved buying appetite on account of lower filament prices have increased the demand for filament yarn by 6 per cent on y-o-y basis. Overall domestic polyester demand grew by about 9 per cent y-o-y as stated by major polyester manufacturers and therefore, promises increased profitability for yarn manufacturers over the coming months.