Vigour Impex wishes all our Customers and Vendors a very Happy New Year 2019.
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Local Cotton Highlights:
- Modest trading activity was seen in local cotton market in last week. Most of the buyers and spinners were in wait and watch mode. Many mills have covered their cotton stocks, so only needy buyers were in the market to cover the short run requirements. Many mills are focusing on importing cotton. Ginners have handsome stocks with them of over 1.7 million cotton bales still unsold. So they showed softness in prices, but buyers didn’t show much interest.
- Prices almost remained at same levels. Low level phutti prices dropped but high-quality lint prices were at the same pace. Internationally cotton prices were down due to which buyers were not interested to make big deals. In last week cotton futures contract shuttled between 70 cents to 75 cents per pound. Karachi Cotton Association (KCA) spot rate dropped in this week Rs. 100 and touched the level of Rs 8,700 per maund. PCGA issued report and showing handsome drop of cotton arrival. Over 10 million bales of seed cotton (phutti) have reached with ginners across the country till January 1, showing shortfall by 7.52 percent compared to corresponding period of the last year. It seems that total arrival will be around 10.7 Million and shortfall will be 1 million compared to last year. While our total consumption is 14.5~15million.
- Prices of seed cotton (Kapas/Phutti) in Sindh were in range from Rs 3000 to Rs 3800 per 40 Kgs, while in the Punjab the seed cotton prices reportedly ranged from Rs 3300 to Rs 3800 per 40 Kgs in local market based on quality. Prices of lint for the new crop (2018/2019) from Sindh are said to have ranged from Rs 8100 to Rs 8900 per maund (37.32 Kgs), while the lint prices from Punjab reportedly ranged from Rs 8300 to Rs 9100 per maund. Overall deals were made between the range of USC 71~80 Lbs. (8,100~9,100/ maund).
New York Cotton Futures:
- New York Cotton futures opened on slightly lower side on last Monday as compared to previous week’s closing figures.
- NYCF showed downward trend in whole week, while recovered on closing and closed on positive side by the end of the week.
At last day of the week, MARCH 2019 closed at 72.52 with increase of 33 points.
At last day of the week, MAY 2019 closed at 73.94 with rose of 44 points.
At last day of the week, JULY 2019 closed at 75.29 with gain of 66 points
|Closing of NYCF’s|
|Mar 19||72.52 cents / lb||+0.33 cents/lb|
|May 19||73.94 cents / lb||+0.44 cents/lb|
|Jul 19||75.29 cents / lb||+0.66 cents/lb|
A was opened at 80.55 with Lower levels from previous week’s closing figure.
- In this week Index “A” showed fluctuations on both way and closed on negative side.
- At last day of the week, LPI “A” closed at 79.65 with decrease of 90 point as of opening figure of the week.
Crude Oil prices opened at USD 45.41 with slight high level as compared to last week closing figures.
- In this week crude oil price showed rising trend in whole week and closed on positive side at the end of week.
- In last day of the week, Crude Oil price closed at USD 47.96 with increased of USD 2.55 cents as of opening figure of week.
Pakistan Currency Exchange Rates
- In last week values of Pak rupee showed stable trend against US Dollar’s, other major currencies showed mix trend in both Interbank and open markets.
- At the end of week, Euro closed on a negative note with figure of 1.14 and British Pound closed on positive note with figure 1.27 against USD.
|Exchange Rates USD.|
- Local yarn market remained stable in calling prices but slow in term of business finalization. Most of the buyers remained away from buying and just focused on year closing with activities of lifting and payments. Further selling pressure was seen on local spinners due to limited enquiries in the market. Mills are sold for next 2~3 weeks ahead and none are carrying big stocks now a days.
- PSF price remained stable in domestic market by Ibrahim Fiber during last week ended. Crude oil prices become stable, PTA, MEG prices remained same in International market during this week and China polyester price remained stable by end of this week. It is expected that price of polyester in domestic market will remained same for next week.
- Faisalabad trading market was slow in fine cotton yarn counts and rates remained stable with limited activity. Cash became short due to end DEC closing and blended yarn prices were also stable and limited activity reported.
Following are current asking prices of yarn in local market based on ex mills:
|Local Yarn Prices Range|
|Count||Price US $/Bale|
|16/1 CD||435 to 445 per bale|
|20/1 CD||450 to 470 per bale|
|30/1 CD||510 to 525 per bale|
|20/1 CM||525 to 540 per bale|
|30/1 PC 52:48||430 to 450 per bale|
|40/1 CM||645 to 670 per bale|
|60/1 CM||910 to 945 per bale|
|80/1 CM||1245 to 1395 per bale|
- Chinese customers remained aside of buying this week mainly due to holiday mood. However, limited business was reported where customers and supplier signed on the agreed prices. Over all suppliers are getting firm after handsome sales in last 2 weeks. Good quality suppliers have already finished February and offering onward shipments whereas average quality mills are selling February shipments.
- Under current circumstances and keeping in very of good demand, we can say that price might get better by 1-2% in days to come.
- Insignificant activity has been noticed in Export Yarn Market. Prices remained stable in term of asking but spinners were much interested to receive the final bids from buyer’s side to catch every possible order. In Far Eastern market, Korean customers remained quiet with no major activity. For Pakistan this market is certainly having very less potential as far as Yarn is concerned. In Hong Kong market customers inquired for few inquiries but none of the deals were finalized.
- European Markets remained inactive and opened middle of the week after Christmas and New year holidays. Turkish buyers remained silent, only few deals of double yarns reported on lower level of prices from the needy mills.
- Local fabric market remained in holding pattern and therefore week closed on a firm note for both narrow and wider width fabric markets, despite negligible business reported in the market.
- Weavers did not show any panic under current circumstances and booked available orders at their desired levels, Weavers extended their booking level to end Feb/early march for narrow width and Mid-March’19 for wider width looms and offering onward deliveries respectively.
Local fabric prices of regular items are as follows:
20×16/128×60=63”at USD 1.18 to 1.20 per yard, 16×12/108×56=63” in range of USD 1.25 to 1.27 per yard and 20×20/108×58=63” was sold in range of USD 0.99 to 1.01 per yard based on ex mills.
- Far Eastern markets remained almost quite during the week as no considerable inquiries were exchanged. Few inquiries were received from Korea, China and Japan towards end of the week only for bulk orders which hopefully will finalize in next week. Other markets like Bangladesh, Vietnam, Thailand and Malaysian markets were slow.
- Asking prices remained stable due to stable raw material prices. Currently good suppliers are booked till end of Feb and offering early March onward deliveries whereas average suppliers are booked till mid of Feb and offering end Feb onward deliveries. It is expected that fabric prices may remain stable and business activity will further improve.
Following were the closing rates based on CNF Far Eastern ports.
20×16/128×60=63”, in range of 1.10 to 1.12 per yd, 16×12/108×56=63” between USD 1.20 to 1.22 per yd and 20×20/108×5863” in range of USD 0.92 to 0.94 per yd based on CNF Far Eastern ports.
- Good number of inquiries were discussed by European customers during the week. Suppliers have their opinion that these inquiries are for price checking mainly as customers are preparing themselves for upcoming Heimtex fair held in Germany during 2nd week of Jan. Wider width suppliers have got good orders from their regular customers in Europe and USA thus they have extended their sales further. Suppliers are offering wider width fabric from end March onward deliveries. It is expected that business activity from Europe may remain slow however USA buyers will continue their buying as they have good demand in hand.
- Home textile market was too Slow in last week because most of customer were on Christmas Holidays. Some Customers came back from holidays and floated few inquiries in the market just to check the current prices but maturity of business was limited. USA Market was also slow in last week due to Holidays, and customer placed few orders of running Collections. European markets did not place any new orders due to upcoming Heimtextil fair. Customer will review new developments and trends which suppliers will offer at Heimtextil, before they place new orders.
- Home textile article prices were firm in last week and there were no significant changes observed. So, keeping in view the current prices and market situation it seems that prices will remain on same level and customers will place new orders after or during Heimtextil fair. Suppliers have orders up to mid-February, 2019. As far as shipments are concerned supplier is offering 65 to 70 days for new orders & for repeat orders supplier are offering 50 to 65 days.
- Holiday mood persisted during the week as customers started coming back from New Year and Christmas Holidays. At the same time factories were running at their full capacities for the orders already in hand. With lead time being offered from eighty to ninety days.
- Pakistan has witnessed an evolution in Garment industry as we have observed that industrialists who were initially engaged in spinning or weaving have ventured into Finished Garment Production as they have realized that profitability builds up with each process.
- An increase in new customers have been seen from Europe and United States. The Garment industry is accepting a tremendous growth in their business as they have proven to the Global customers that challenges of timely delivery and quality products can be met from and sustained in Pakistan.
- In local yarn market it is expected that market will be determined according to the demand that prevails in market. Further price trends of yarn will be according to the demand and supply of different counts which will lead price levels.
- In export yarn China market may show good business activity in days to come as demand is increasing and customers are buying yarn at better rates whereas in other markets it is expected that market will remain same, buyer will prefer to buy in chunks instead of placing extended programs.
- In local fabric market gradually retreating from its highs and therefore in the absence of bulk inquiries market is expected to remain slow in coming weeks.
- In export fabric market slow was observed from Far Eastern and Asian countries. Prices were stable and expected to remain stable in coming days. European customers are active for inquiries but business maturity is less. However, USA buyers have good orders in hand.
- Home Textiles Market was slow and business activity was not seen good as compared to the last 3 to 4 weeks in the market but hopefully in coming days market will be stable. So, keeping in view current situation it looks that prices will remain firm and customer will place the orders after Heimtextil fair.
- In the Apparel Industry of Pakistan, we have seen quite significant invests last year with significant amounts pooled into developing not only the infrastructure but also the Human Resource that is needed to achieve sustainability. 2019 will prove to be a fruitful year for the apparel exports overall.