Local Cotton Highlights:
- In the local cotton market, mills and buyers showed cautious buying during this week. Only needy buyers showed interest and activity was moderate. The ginners were interested with decreasing stocks due to which the rate of cotton remained firm. On the other hand, imported cotton arrival has also been started so local market was remain on slow pace. Mills are hoping that government will lift ban on import duty to cotton from January.
- The prices of cotton were on same levels without major changes. Stocks are declining. The Spot Rate was remained same and firm at the level of Rs 8800. Mix trend was seen in the international market. NYCF showed rising trend due to the decreasing of tension of trade war between American and China. The rate of cotton remained stable in china, while in India downward trend was seen.
- Cotton assessment committee was held last week in which the reviewed estimate of production of cotton is 94 lac fifty thousand per 170 kgs bales, which is seven lac bales less from the earlier estimate of one crore2 lac bales while the initial estimate was 37 % less from the estimate of 15 million bales. It seems that activity will remain moderate in a day to come and no major changes are expected in term of prices.
- Prices of seed cotton (Kapas/Phutti) in Sindh were in range from Rs 3200 to Rs 4000 per 40 Kgs and cotton is available from Sindh in range from Rs 7800 to Rs 8900 per maund (37.32 Kgs). In Punjab prices of seed cotton was in range from Rs 3300 to Rs 4200 per 40 Kgs and cotton is available from Punjab in range from Rs 8000 to Rs 9150 per maund (37.32 Kgs). In Balochistan, seed cotton prices were in range of Rs 4200-4400.Overall deals were made between the range of USC 62~72 Lbs. (7800~9,150/ maund).
New York Cotton Futures:
- New York Cotton futures opened on higher levels on Monday as compare to previous week’s closing figures.
- NYCF showed upward trend in this week and at the end closed on positive side.
At last day of the week, MAR 2020 closed at 68.92 with increase of 31 points.
At last day of the week, MAY 2020 closed at 70.08 with rose of 42 points.
At last day of the week, JULY 2020 closed at 70.78 with upsurge of 48 points.
|Opening Of the Week||Closing Of the Week||Change|
A was opened at 76.65 with higher level from previous week’s closing figure.
- In this week Index “A” showed upward trend in this week and closed on positive side.
- At last day of the week, LPI “A” closed at 77.65 with increase of 100 points as of opening figure of the week.
Crude Oil prices opened at USD 60.52 with slightly higher level as compared to last week closing figures.
- In this week, crude oil price showed upward trend and closed on positive side at the end of week.
- In last day of the week, Crude Oil price closed at USD 61.72 with increase of USD 1.20 cents as of opening figure of week.
Pakistan Currency Exchange Rates
- In last week values of Pak rupee decreased slightly 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 1.12 and British Pound also closed on positive note with figure 1.31 against USD.
|LC 120 Days||147.98||147.93|
- Local yarn market remained firm and stable during this week ended with limited business activity. Buyers was interested in buying but on previous rate whereas supplier remains firm due to good sale position. Suppliers are sold for one month and comfortable in sale position due to good business in export for coarse count yarn as well.
- PSF prices remained stable during this week ended. In China PSF price were stable and internationally crude oil prices also were in smooth trend and same followed by raw material PTA and MEG. For next week it is expected that PSF prices expected stable in domestic market.
- Faisalabad trading market reported average business activity. Some fine counts trade was made during this week ended. Exporter and register mills were also busy in their regular buying. Fine counts demand was there and reasonable activity was reported. Blended yarn demand reported very average in term of business finalization.
Following are current asking prices of yarn in local market based on ex mills:
|16/1 CD||430 – 450 per bale|
|20/1 CD||450 – 480 per bale|
|30/1 CD||505 – 535 per bale|
|20/1 CM||520 – 530 per bale|
|30/1 PC 52:48||415 – 445 per bale|
|40/1 CM||625 – 655 per bale|
|60/1 CM||885 – 925 per bale|
|80/1 CM||1205 – 1320 per bale|
- Market remained firm and stable with good business activity. Customers kept on buying good quantities. Cotton prices showed upward sentiment throughout the week. This has put reasonable demand in market and customers started to place orders as well. If we look at the market sentiment, it is most expected that prices will remain firm and stable with handsome business activity.
- Suppliers are quite comfortable with their sales position and asking for higher prices in accordance to cotton prices. We might see good business activity in days to come as well. Korean customers remained silent and no such business activity was witnessed. HK customers also remained slow and limited numbers of enquiries were floated against which order materialization was dull as well. Chinese customers showed good business activity as they kept on buying their selected brands. Over all, prices have showed increase of 2-3% in last one month. European customers remained on Christmas holidays and no such activity was witnessed.
|16/1 CD||450 – 460||460 – 460||450 – 460||450 – 460|
|20/1 CD||460 – 470||470 – 470||460 – 470||460 – 470|
|20/1 CM||515 – 520||520 – 520||515 – 520||515 – 520|
|30/1 CD||515 – 520||520 – 520||515 – 520||515 – 520|
|32/1 CD HOS UNWAXED 100% COT.||520 – 530||530 – 530||520 – 530||520 – 530|
|30/1 CM||570 – 580||580 – 580||570 – 580||570 – 580|
|32/1 CM||565 – 575||575 – 575||565 – 575||–|
- Local fabric market showed steady and firm posture during the whole week for both narrow and wider width fabric markets in current week under review. Weavers received reduced flow of inquiries from their buyers and limited business materialization reported in the market for both narrow and wider width fabrics.
- Weavers booked limited orders after tough negotiations and now offering early February’2020 onward for narrow width and March’20 onward deliveries for wider width looms. Whereas special looms delivery available by April’20 onward.
Local fabric prices of regular items are as follows:
|Construction||Price US$/YD ExMill|
|20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN||1.08 – 1.10|
|16X12/108X56 63″ 3/1||1.18 – 1.20|
|20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN||0.91 – 0.93|
- Limited number of inquiries were received from Korea, China, Bangladesh, Vietnam and Japan resultant limited buying during the week. Asking prices were stable by the suppliers due to stable and firm raw material prices. Generally business sentiment was slow due to Christmas and new year holidays. Currently good suppliers are booked till mid of Feb and offering end Feb onward deliveries whereas average suppliers are offering mid Feb onward deliveries.
- It is expected that first week of the year may remain slow due to less buying interest by the end customers.
Following were the closing rates based on CNF Far Eastern ports.
|Construction||Price US$/YD CNF Far East|
|20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN||1.13 – 1.15|
|16X12/108X56 63″ 3/1||1.22 – 1.24|
|20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN||0.94 – 0.96|
- Slow business sentiment is expected for coming weeks from Asian and Far Eastern sectors. European and USA buyers may also have less demand as most of the customers are on new year holidays. customers have shared a smaller number of inquiries during the week which normally they exchange good flow of inquiries for their preparation of upcoming Heimtex fair. It indicates less demand from their end users / customers.
- Wider width suppliers have good orders in hand thus offering end March onward deliveries. Prices for wider width remain firm and upward as suppliers have increased their profit margins due to good sales coverage however customers are accepting even increase prices to get their required deliveries. Suppliers are expecting less orders in coming weeks as customers are busy in preparing themselves for upcoming mega textile event which is Heimtex fair held in Germany during 2nd
Bedding & Towels:
- Home textile market was observed slow in last week and a limited activity seen in the Market. USA Market was slow in last week, limited inquiries observed in market and order placement was limited. European markets buying was remind slow. Customers placed limited orders which they need on urgent basis. As per forecast market will remain slow till the mid-January due to upcoming Heimtex fair 2020.
- Prices were almost stable and not observed any change in current price levels. supplier is offering very good prices. keeping in view current market situation it looks that prices will remain stable in upcoming days and customers will place the orders after Heim textile fair 2020. Suppliers have orders up to February, 2020 but still they are under sales pressure to fulfill their capacities 100% after February & they are trying get more orders from different customers / markets, even to full fill their capacities suppliers are offering very sharp prices to capture bulk orders.
- As far as shipments are concerned supplier is offering 80 to 90 days for new orders & for repeat orders supplier are offering 6o to 65 days.
- Readymade garments industry of Pakistan is adequately equipped to produce the latest designs to suit tastes and needs in any part of the world. Knitted garment and hosiery are playing a pivotal role in value addition in the clothing sectors where the products are wide in range and include T-Shirts, Jogging Suits, Jerseys, Pajamas, Sport, Shirts, Gloves, Night Gowns, Track Suits, Sweaters and socks.
- Pakistan is the fourth largest cotton producer in the world, which makes the availability of raw material of readymade garments very easy. GSP-plus status of Pakistan gives access to textile exporters in the EU markets at zero percent tariff rate. Currency devaluation also provided the opportunities to the readymade garment exporters of Pakistan.
- A lot of infrastructural projects under CPEC are expected to be completed in the near future, which will improve the mobility of raw material and provide uninterrupted supply of power. This will reduce the cost of production for readymade garments and will eventually result in improved competitiveness.
- Overall factories are working at their full capacities and have space to offer deliveries from end March onward according to the type of the garment.
- About future market it is expected that domestic yarn market will be remains stable and firm for next week due to firm prices of raw material in local and international market. Further price trends will be according to demand and supply of different counts which will lead price level.
- Market showed good sentiment and prices are expected to increase further. So, we might see good business activity in days to come.
- Local fabric market expected to remain slow for both narrow and wider width looms for coming weeks.
- Slow demand is expected during coming weeks from Asian and Far Eastern customers. Prices may remain stable and firm due to firm raw material prices both in cotton and blends. European and USA buyers are expected to share limited inquiries in next week due to holidays.
- Overall Business activities were slow but current market Statics showing business will grow in upcoming weeks and customers will place their major orders for 2020 sales after heimtex fair.
- Pakistan has a complete value chain of readymade garments from cotton production to the production of readymade garments and has been an important source of readymade garments from the buyers around the globe.