Pakistan Cotton Market
In the local cotton market, modest traded activity was seen and needy buyers interested to buy quality lint but ginners were not interested to sale on these levels in expectations of further increase in prices in a day to come. Ginners are expecting increasing trend in market after the easing of trade conflict between China and America. So, they were involved in cautious buying.
The market volume increased to some extent, although local business suffered due to rains, fog and strike of transport.
In the local cotton market during the last week the prices of quality cotton increased around 200~300 Rs per maund. The Spot Rate was increased from 8900 to 9000. In the coming days if the things going well then, the increasing trend in prices may prevail.
Over all increasing trend was witnessed in prices of cotton in the international market. Fluctuation was observed in the international market due to the rising tension between America and Iran. It is expected that intensity of trade conflict between China and America will partially come down from January 15. The rate of cotton exceeded 73 American cents which was highest in last eight months.
In Indian cotton the textile mills of China, Vietnam and Bangladesh had started taken interest due to which the increasing trend was witnessed in the rate of cotton. Although, in India the volume of buying by local textile industry is low due to which there is a crisis like situation is there. There may be a depression in the rate of cotton of America and Brazil after Asian countries interest in import of Indian cotton.
Prices of seed cotton (Kapas/Phutti) in Sindh were in range from Rs 3200 to Rs 4400 per 40 Kgs and cotton is available from Sindh in range from Rs 8000 to Rs 9250 per maund (37.32 Kgs). In Punjab prices of seed cotton was in range from Rs 3300 to Rs 4500 per 40 Kgs and cotton is available from Punjab in range from Rs 8000 to Rs 9300 per maund (37.32 Kgs). Overall deals were made between the range of USC 63~71 Lbs. (8000~9,300/ maund).
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 63.00 | 63.00 | 0.00 |
| Highest | 71.00 | 73.00 | 2.00 |
Crude Oil
Crude Oil prices opened at USD 63.27 with slightly higher level as compared to last week closing figures.
In this week, crude oil price showed downward trend in this week and closed on negative side at the end of week.
In last day of the week, Crude Oil price closed at USD 59.04 with decrease of USD 4.23 cents as of opening figure of week.
| Lowest | Highest | Change | |
| Price | 63.27 | 59.04 | 4.23 |
Exchange Rate
In last week values of Pak rupee remained stable 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 1.11 and British pound also closed on negative note with figure 1.30 against usd.
| Selling | Buying | |
| LC Sight | 154.03 | 153.98 |
| LC 120 Days | 147.82 | 147.77 |
| Open Market | 156.90 | 153.30 |
New York Cotton Future
New York Cotton futures opened on higher levels on Monday as compare to previous week’s closing figures.
NYCF dropped in next session, later on showed upward trend in this week and at the end closed on positive side.
At last day of the week, MAR 2020 closed at 71.31 with increase of 27 points.
At last day of the week, MAY 2020 closed at 72.46 with rise of 137 points.
At last day of the week, JULY 2020 closed at 73.42 with upward of 158 points.
Pakistan Yarn Market
Local yarn market remained firm in term of asking prices and average sale made during this week. All customers were busy on Himtex fair and limited business in yarn buying was made during last week ended. On the other hand, fine counts, especially 40/1combed was in good demand and prices jumped more up and delivery is still short in market. Most of mills are sold for one month on average and have no stock pressure.
PSF prices increased Rs.2/kg by 6th January 2020. In China PSF price was increased and internationally crude oil prices were also in firm trend. Prices increased in raw material PTA and MEG by end of this week. For next week it is expected that price will remain stable for PSF 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 business reported average in term of business finalization.
Following are current asking prices of yarn in local market based on ex mills:
| Count | Price US$/Bale |
| 16/1 CD | 425 – 445 |
| 20/1 CD | 445 – 475 |
| 30/1 CD | 515 – 535 |
| 20/1 CM | 520 – 530 |
| 30/1 PC 52:48 | 415 – 450 |
| 40/1 CM | 650 – 670 |
| 60/1 CM | 900 – 940 |
| 80/1 CM | 1205 – 1315 |
Export Yarn Market
Market remained firm and stable with limited business activity. Customers were checking prices but due to higher prices, customers could not finalize most of the deals. Cotton prices were firm in this week due to the decrease tension of USA & China. 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. It seems that healthy activity will remain continue in days to come as well.
Korean customers were silent as no considerable business activity was witnessed.
HK customers showed interest in buying however limited business orders were materialized.
Chinese customers showed moderate business activity as they kept on checking the prices and made orders.
European customers were busy in Heimtex fair. Some orders were also materialize during the fair.
Following were the closing rates based on CNF Far Eastern ports:
| Count | Korea | HongKong | Taiwan | Japan |
| 16/1 CD | 450 – 460 | 450 – 460 | 450 – 460 | 450 – 460 |
| 20/1 CD | 460 – 470 | 460 – 470 | 460 – 470 | 460 – 470 |
| 20/1 CM | 515 – 525 | 515 – 525 | 515 – 525 | 515 – 525 |
| 30/1 CD | 520 – 530 | 520 – 530 | 520 – 530 | 520 – 530 |
| 32/1 CD HOS UNWAXED 100% COT. | 520 – 530 | 520 – 530 | 520 – 530 | 520 – 530 |
| 30/1 CM | 570 – 580 | 570 – 580 | 570 – 580 | 570 – 580 |
| 32/1 CM | 565 – 575 | 565 – 575 | 565 – 575 | – |
Pakistan Fabric Market
The local fabric remained dull throughout the week for both narrow and wider width fabric markets.
Flow of inquiries remained limited due to just ended textile fair in Germany and therefore negligible business materialization reported in the market at last week price level after tough negotiation as buyers are not ready to pay high prices for both narrow and wider width fabrics.
Majority of the weavers are booked in narrow width till mid-Feb’2020 whereas they have covered their wider width looms till end-March’2020 and offering onward deliveries for both narrow and wider width fabrics.
Following were the closing rates for some of the regular items based on Ex-Mill:
| Construction | Price US$/YD ExMill |
| 20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN | 1.09 – 1.11 |
| 16X12/108X56 63″ 3/1 | 1.19 – 1.21 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.91 – 0.93 |
Export Fabric Market
Far Eastern customers have share average number of inquiries during the week thus average business was reported for Korea, Bangladesh, Japan and Vietnam.
Due to severe strike by the transports since last two weeks, vehicles are not available to move the ready goods even what ever the goods are moved, those are held at port and cannot enter into the ports. Most of the suppliers are facing LC expiry problem and LC discrepancy charges due to delay in shipments.
Asking prices were stable with firm note by the suppliers due to firmness in raw material prices. Currently good suppliers are booked till end of Feb and offering mid March onward deliveries whereas average suppliers are booked till 3rd week of Feb and offering end Feb ~ early Mar onward deliveries depending on the quality.
It is forecasted that fabric prices will remain stable and firm and business activity will further improve in days to come.
Since most of the European and USA buyers were busy in Heimtex fair in Germany so no considerable inquiries were reported rather buyers and sellers have exchanged their views during the fair. It was reported that there was good crowd on Pakistani stalls as customers were taking more interested into Pakistan products.
It is expected that business activity will further increase by European and USA buyers in coming days as they are getting good support from Pakistani suppliers in term of price, delivery and commitment.
Wider width business activity remains good during the Heimtex fair as good quantity of programs were discussed by the buyers. Suppliers are expecting good quantity orders during coming days from their European and USA buyers however prices are expected to remain stable and firm.
Wider width suppliers are comfortably booked till end of March and offering April onward deliveries. Very limited quantities are available for March deliveries with some of the suppliers.
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 |
Bed Linen & Towels
Home textile market was observed slow in last week.
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 needs on urgent basis. As per forecast market will remain slow till the mid-January due to Heimtex fair 2020.
Prices were almost stable and not observed any change in current price levels. supplier are 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.
Overall Business activities were slow but current market Statics as prices are stable so, it seem looks that Customer will decide to place orders in coming weeks.
Garments
Pakistan’s foothold in the apparel Global Value Chain can trace its roots to the country’s history of cotton production. With production clusters in Karachi, Lahore and Faisalabad, Pakistan has been one of the top ten apparel exporters in 2019. Long one of the world’s leading cotton producers, country has used local access to the natural fiber as well as the related yarn and fabric materials to integrate into the apparel Global Value Chain in certain product categories.
Pakistan’s apparel products are largely exported to one of two destinations: the EU and the US. One of the more prominent developments in the Pakistan apparel industry in recent years is its increased access to European markets. The US had been Pakistan’s top trading partner throughout the early 2000s before the EU took over that position in 2009. One reason that Pakistan’s exports to the EU have surged in recent years is the country’s participation in the GSP+ program.
Long one of the world’s top-five sources for the raw material, a small group of local companies have taken advantage of the access to selected inputs to move from textiles to apparel and integrate into the supply chains of leading firms. Currently factories in Pakistan are offering end March onward deliveries according to the type of the garments.
Going Forward
In the local cotton market during the last week the prices of quality cotton increased around 200~300 Rs per maund. The Spot Rate was increased from 8900 to 9000. In the coming days if the things going well then, the increasing trend in prices may prevail.
Domestic yarn market is expected to remain stable and firm for next week due to good sale position of mills. Further price trends will be according to demand and supply of different counts which will lead price level.
Slow & steady trend may prevail for both narrow and wider width looms for Local fabric in coming weeks.
Export Fabric Far eastern market business activity was improved. Prices remains stable and firm. USA and European customers have shown good interest during the Heimtex fair as they are willing to further increase business in Pakistan thus business volume will further increase in coming days.
Due to transports strike, shipments are delayed as suppliers could not move the ready goods. Thousands of the containers are held at port and could not enter due to strike.
With the increased technology in apparel manufacturing processes and inherited properties of cotton, Pakistan is expected to remain a major source of garments for importing markets.
