Local Cotton Highlights:
- In the local cotton market, modest trade activity was seen and needy buyers showed interest in buying of good quality lint. Ginners were also interested to release their stocks due to the handsome arrival of imported cotton. Due to the increase of rate of New York Cotton the new agreements for the import of cotton in overseas are signed in small numbers due to which the textile mills are taking interest in buying of local cotton.
- In the local cotton market during the last week the prices were remained firm and stable without any major changes. The Spot Rate was same at the level of 9000 in this week without any change.
- Overall rate of cotton in international market remained moderate. The rate of cotton in New York Cotton Market could not increase despite China and America trade agreement. There is an increasing trend in the prices of Indian cotton after the increasing interest of China and Vietnam in Indian cotton whereas mixed trend was seen in the prices of cotton in China. According to the reports received from India cotton production is expected to increase by 13.6 percent as compared to last year. Cotton Cooperation of India will buy 50 lac bales as per the support price announced by the government. Up till now agreements of 38 lac bales has been signed.
- PCGA issued report on 18th January and showing total arrival is 8,338,026 bales which is aprox less around 20.26 % from last correspondence year which was 10,456,925 bales. it is expected that locally 85 lac bales of cotton will be produced in the country which is 20 percent less as compared to last year’s production due to which 60 lac cotton bales of worth around two billion dollars will be imported which is a burden on the already weak economy.
- 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 63~74 Lbs. (8000~9,300/ 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 downward trend in this week, while recovered on closing but still closed on negative side.
At last day of the week, MAR 2020 closed at 71.25 with decrease of 28 points.
At last day of the week, MAY 2020 closed at 72.19 with drop of 48 points.
At last day of the week, JULY 2020 closed at 73.06 with downward of 57 points.
|Opening Of the Week||Closing Of the Week||Change|
A was opened at 79.20 with increase level from previous week’s closing figure.
- In this week Index “A” showed upward trend in this week, while dropped on closing and closed on same level opening level.
- At last day of the week, LPI “A” closed at 79.20 with the same opening level.
Crude Oil prices opened at USD 58.08 with lower level as compared to last week closing figures.
- In this week, crude oil price showed upward trend, only dropped in mid of week session, hence closed on positive side at the end of week.
- In last day of the week, Crude Oil price closed at USD 58.54 with increase of USD 0.46 cents as of opening figure of week.
Pakistan Currency Exchange Rates
- 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 closed on positive note with figure 1.30 against USD.
|LC 120 Days||147.63||147.58|
- Local yarn market remained firm in term of asking prices and average sale made during this week. All customer was busy on Himtex 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 by end of this week and internationally crude oil prices also were in firm trend and 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:
|16/1 CD||430 – 455|
|20/1 CD||455 – 480|
|30/1 CD||525 – 540|
|20/1 CM||520 – 530|
|30/1 PC 52:48||415 – 450|
|40/1 CM||660 – 675|
|60/1 CM||935 – 970|
|80/1 CM||1220 – 1320|
- Market showed limited business activity due to continues upward trend in prices.
- It has been witnessed that all supplier increased their price after the continuous hike in NYCF and simultaneously in Pakistan cotton prices.
- Major reason for this increase was trade deal agreement of first phase between China and USA which made stakeholders aggressive in 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 ot 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 has showed increase of 2-3% in last one month.
- European customers floated handsome numbers of enquiries for yarn buying against orders they placed during Heimtex. It is expected that good demand will arise form market in anticipation of further incline in prices amid good demand.
|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||565 – 575|
- In current week under review the local fabric market showed firm and steady trend throughout the week for both narrow and wider width fabric markets.
- Flow of inquiries slightly improved but order materialization remained limited due to firm yarn prices and resultantly weavers could not find any cushion in negotiation.
- In narrow width weavers are booked till early March and wider width looms are covered till end March’2020 and onward deliveries are available with all weavers.
Local fabric prices of regular items are as follows:
|Construction||Price US$/YD ExMill|
|20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN||1.09 – 1.11|
|16X12/108X56 63″ 3/1||1.19 – 1.21|
|20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN||0.91 – 0.93|
- Mixed trading sentiment was noticed during the week. Korean customers exchanged negligible inquiries for price checking only. Chinese customer share limited inquiries before going to New Year holidays however no considerable buying was witnessed. Limited inquiries were received from Bangladesh, Vietnam and Thailand resultant limited buying.
- Suppliers kept their asking prices stable with firm note due to firmness of raw material prices.
- Currently good suppliers are booked till early of March and offering mid ~ end Mar onward deliveries whereas average suppliers are booked end of Feb and offering early ~ mid March onward deliveries.
- It is expected that fabric prices will remain firm in days to come and business activity will remain average.
Following were the closing rates based on CNF Far Eastern ports.
|Construction||Price US$/YD CNF Far East|
|20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN||10.13 – 1.15|
|16X12/108X56 63″ 3/1||1.22 – 1.24|
|20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN||0.92 – 0.94|
- Customers just back after attending Heimtex fair held in Germany. During the fair, good meetings were conducted and customers have shown good interest in buying mainly in wider width fabtic however suppliers had no attractive deliveries hence the orders kept on hold and now under negotiation process.
- Good demand was shown by Germany, Portugal, Italy, Spain, USA and some African markets.
- Suppliers were offering prices with firm note due to firmness of raw material prices.
- Wider width suppliers were offering April onward deliveries.
- It is expected that business activity from Europe, Africa and USA will remain good in coming days.
Bedding & Towels:
- Home textile market was slow in last week and order placements seen limited .
- USA Market was seen slow in last week, Limited inquiries floated in market.
- European markets buying was slow. Customers came back from heimtex and now started to send the new inquires for the future orders keeping in view new trends which exhibiters placed at their stands in Heimtex fair. Few customers placed limited orders which they required for urgent basis to continue their supply chain. As per forecast market will better in upcoming weeks.
- Prices were almost stable and not observed any significant change in current price levels. Although yarn prices slightly increased but suppliers keeps the prices on same level as they were quoting from last 3 to 4 weeks. Keeping in view current market statistics it looks prices will remain stable in upcoming weeks.
- Suppliers have orders up to February / mid-March, 2020 but still they trying to get more orders to fulfill their capacities 100% after mid-March. they are trying get more orders from different customers / markets, offering good prices to capture orders.
- As far as shipments are concerned supplier is offering 80 to 90 days for new orders & for repeat orders supplier are offering 50 to 65 days.
- The 35th International Apparel Federation (IAF) Fashion convention, co organized by Pakistan Ready Made Garment Manufacturers and Exporters Association was held last month in Lahore, the capital city of the province Punjab and hub of the majour textile and clothing companies of the Pakistan. In the inaugural speech, Mr. Abdul Razzaq Dawood advisor on commerce, investment, industries and textiles to Pakistan’s Prime Minister highlighted that internationally apparel exports from Pakistan is increasing.
- Apparel industry was often driven by fixed traditions and so should focus on making room for new ways of working, specially increasing collaboration with suppliers and consumers. This is the key to successful implementation of new technologies as well as improving sustainability in the apparel supply chain. Readymade garments industry of Pakistan is adequately equipped to produce the latest designs to suit tastes and needs of the consumers globally.
- Factories have geared themselves up to meet the challenges of the time considering the high fashion market with rapid changing trends. At the moment overall factories have space to offer deliveries from April 2020 onward.
- About future market it is expected that domestic yarn market will be remains 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.
- Market showed good sentiment and prices are expected remained firm and stable with tendency to increase further. So, we might see good business activity in days to come.
- Firm and slow sentiments may prevail for both narrow and wider width looms for coming weeks.
- Mixed business sentiment was noticed from Far Eastern and Asian markets. Prices were stable with firm note. European and USA customers have shown good interest in fresh buying however required delivery was not available with the suppliers hence the bulk program orders are still under negotiation process and expected to materialize in coming days.
- Overall Business activities were slow and business placement from different sectors was limited because suppliers and buyers were busy in Heimtex fair and now resumed back on their work. At Heimtex observed good interest of buyers in new products / new fabrics especially at Pakistani stands which shows that customers will place the new orders in new developed products. As per current market statistics prices will remain stable and Customer will place orders in coming weeks.
- The Garment industry in Pakistan is accepting a tremendous growth in their business as it has proved to the Global customers that challenges of timely delivery and quality products can be met from and sustained in Pakistan.