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Local Cotton Highlights:
- In last week cotton market did well during the week after the announcement of the mini-budget. Improved trade activity was seen in local cotton. some mills and buyers showed interest in cotton buying. Traders and businessmen are happy after the announcements of several incentives in the mini budget. But on the other hand, government could not announce SRO in the mini budget. Government has removed import duty on cotton, but SRO is still awaited and creating uncertainty among the mills\buyers.
- Ginner have a built up of unsold cotton and showed softness in asking after the announcement of the removal of duty.
- Prices remained on slower pace, In last week international market showed firmness. Karachi Cotton Association (KCA) spot rate maintained the level of Rs 8,700 per maund. 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 9075 per maund. Overall deals were made between the range of USC 71~79 Lbs. (8,100~9,000/ maund).
New York Cotton Futures:
- New York Cotton futures opened lower level on Monday as compare to previous week’s closing figures.
- NYCF showed mix trend and move on both ways, although closed on positive side by the end of the week.
At last day of the week, MARCH 2019 closed at 74.13 with rose of 100 points.
At last day of the week, MAY 2019 closed at 75.57 with increased of 104 points.
At last day of the week, JULY 2019 closed at 76.87 with improved of 104 points.
|Closing of NYCF’s|
|Mar 19||74.13 cents / lb||+1.00 cents/lb|
|May 19||75.57 cents / lb||+1.04 cents/lb|
|Jul 19||76.87 cents / lb||+1.04 cents/lb|
A was opened at 83.80 with higher level from previous week’s closing figure.
- In this week Index “A” showed downward trend and closed on negative side.
- At last day of the week, LPI “A” closed at 83.00 with decrease of 80 point as of opening figure of the week.
Crude Oil prices opened at USD 52.57 with low 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 53.69 with increased of USD 1.12 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 positive note with figure of 1.14 and British Pound closed on positive note with figure 1.32 against USD.
|Exchange Rates USD.|
- Local yarn market remained stable and firm during this week with limited business activity. Prices increased during last week sale and mills came in comfortable zone and have no stock pressure. Most of mills are sold for three weeks in coarse counts and some 30/1cd deliveries are also available in the market.
- PSF price remained stable during last week ended due to stable prices in International market. Good demand in local polyester reported which may become a cause to increase prices during this week. Crude oil prices remained stable, PTA, MEG prices remained same in International market during this week and China polyester prices also remained stable by end of this week.
- Faisalabad trading market was slow and stable in all counts and limited activity reported. Most of traders were seen selling their stocks and buying very limited or only required counts. Blended yarn was in good demand due to anticipation increase in polyester fiber.
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||440 to 460 per bale|
|20/1 CD||460 to 475 per bale|
|30/1 CD||515 to 530 per bale|
|20/1 CM||530 to 545 per bale|
|30/1 PC 52:48||445 to 460 per bale|
|40/1 CM||650 to 670 per bale|
|60/1 CM||925 to 955 per bale|
|80/1 CM||1245 to 1395 per bale|
- Chinese customers remained under sluggish business activity due to upcoming holidays. Moreover, they have booked reasonable quantities in last couple of weeks and now only focusing on the LCs and shipments. On the other side, suppliers have increased their prices 4-5% which kept buyers on side line. Customers are of the opinion that this sudden hike is not acceptable as market don’t have the tendency for such gain. Hence. Only few deals were concluded where suppliers and customers met their psychological levels. If we look at the overall business volumes, there is significant improvement as Chinese currency showed improvement and business transactions are better. We might see handsome business activity after Chinese holidays.
- Korean and Hong Kong market remained dull, most of the big brands were unable to book sufficient quantities since Koreans are more interested to buy the fabrics instead of yarns due to the change in their demand and business dynamics. Another yarn which was once quite active in Korea the “zero twist” is also having less demand now a days. Overall these markets are responding really slow mainly for Pakistan. Korean developed itself being good supplier for other regions like HK, Turkey etc. Korean CF yarn is having quite competitive rates.
- European customers floated reasonable level of inquiries and sufficient business has been finalized. During last week most of the buyers were busy in floating programmed based inquires. However, they only purchased in chunks. Good deals of specialized yarn like zero twist as well as conventional yarns were also materialized this week along with some combed yarns which were placed in India due to better level of prices. However, in blended yarns, Pakistan grab most of the orders.
- Turkish Market is also inactive with less demand. So overall market sentiment is positive and it is expected that business will improve especially from Europe in upcoming days.
- The local fabric market remained firm and steady but slow throughout the week against limited inquiries received from local finishers.
- Weavers remained very strong and optimistic in their offers. Weavers booked some orders at their desired inflow and further extended their booking. In narrow width weavers are booked till early-Mid March whereas wider width looms are booked till end march/early April and offering onward deliveries.
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.
- Overall slow business activity was seen during the week from all Far eastern and Asian sectors. Chinese customers were on holiday mood as of their New Year holidays. Limited inquiries were received from Korea, Japan and Vietnam whereas Bangladesh, Thailand and Malaysia markets were quiet. Asking prices were stable with firm tone because of firm raw material prices. Good suppliers are booked till end of March and offering mid-April onward deliveries however average suppliers are offering end March onward deliveries. Suppliers have good booking in hand hence customers are facing problem in getting required deliveries. We expect that delivery problem will remain a major issue for the customers in coming days as well.
- There was good market activity from all European sectors including Germany, Italy, Portugal, Spain and France resultant good booking during the week both in narrow and wider width fabric. Wider width suppliers are getting continuously good orders from their customers hence they are booked for next 60~70 days. Most of the suppliers are now offering May onward deliveries. Customers are facing problem in getting required deliveries for wider width fabric also. This problem may remain same in coming days because suppliers are expecting good orders in wider width because home textile finishing units have got handsome quantities of orders during the Heimtex fair. USA buyers were also active during the week and share good number of inquiries both for Sulzer and airjet units. Suppliers are expecting to finalize the orders during next week.
- Home textile market was active in last week. Customer placed some orders which reflected that maturity of business was better from the previous week. From the USA, market activity in order placements was better, customers started placing orders of running and new Collections. European market buying was also better & placements happened as well.
- Home textile articles prices were on a lower end and suppliers were offering lower prices compared to previous weeks. So, keeping in view current prices and market situation it seems that prices will remain firm in upcoming weeks and there will be no significant change in prices.
- Suppliers have orders up to February, 2019 but still they are under sales pressure to fulfill their capacities at 100% for which they are trying get more orders from different customers / markets. As far as shipments are concerned supplier are offering 65 to 70 days for new orders & for repeat orders supplier are offering 50 to 65 days.
- While country’s core performance has already been recognized in setting up standards on material performances, washings etc., the industry is foreseeing to set up pace for 3S’s concept Speed, Skill and Sustainability to secure significant position in manufacturing game. It has always been challenging on premier fashion and apparel outsourcing with a long-established culture of ethical business and sustainability.
- Factories in Pakistan are running at their full capacities for the orders already in hand. Lead time being offered from eighty to ninety days. Garment manufacturers are waiting for bulk placements to keep their production capacities in running without any break to avoid fixed overhead costs.
- Prices have not been increased by the factories as they are interested to grab orders to keep production capacities in running. The Apparel Industry of Pakistan has invested a significant amount in developing not only the infrastructure but also the Human Resource that is needed to achieve sustainability.
- In the Local Yarn market, it is expected that market will be remain stable and firm due to good activity in yarn and fabric market. Further price trends of yarn will be according to demand and supply of different counts which will lead price levels.
- The export yarn china market will remain dull and slow this week. However, we might see improvement after their New Year holidays.
- In Local Fabric market current booking levels are supporting weavers therefore no market re calibration is expected in coming weeks.
- In Export Fabric market business activity remained mixed as the Far eastern customers have sent limited inquiries resultant limited booking during the week. European and USA buyers were active and suppliers got good orders from Europe both in narrow and wider width fabric. It is expected that narrow fabric business may remain slow and wider width fabric business will further increase in coming days. Prices also expected to remain firm due to good demand expected.
- In Home Textiles market as per forecast market seems to be expanding. Business activity comparatively was better and in coming days customers will make decisions to buy in bulk quantities because as per the forecast prices will be remain on current level in coming weeks.
- Apparel sector going through reasonable business developments which are attracting buyers to come in Pakistan and place orders. Hence, we might see positive developments in days to come.