PAKISTAN COTTON MARKET:
In the local cotton market, dull business activity was observed by the textile mills aimed decreasing trend of the stock of good quality lint. Due to the cautious buying of textile mills and demand of high rate of good quality cotton by the ginners the trading volume remained low.
Owing the start of the delivery the imported cotton from abroad. Textile mills were busy in clearing payments of the imported cotton. According to the estimates up till now mills has signed agreements for the import of 45 lac bales and their deliveries are started. The business activities in the world have come to halt due to Corona Virus in China.
In the local cotton market during the last week the prices were almost firm on same levels. The Spot Rate, although, increased Rs.100 and touched the level of 9100 in this week.
PCGA issued report on 3rd Feb, showing a big fall in arrival with -19.98% from the last year. total 8,487,104 bales are arrived till that and almost cotton season is near to end with small upcoming arrivals.
Over all in the international market the prices of cotton remained moderate. Fluctuation was seen in the prices of New York Cotton. According to the weekly export report of USDA the increase of 28 percent was witnessed. However, positive response was not seen in the market. China was shaken by Corona Virus and the markets were also under the influence of Corona Virus. The effects of the Corona virus have decreased on the markets as a result which bullish trend was witnessed in the markets and the recovery has been started in cotton markets also.
In lower Sindh the sowing season of cotton will be initiated in the last days of February and partially started from middle of March. There were reports that wheat harvesting has been started in some lower areas of Sindh. The cotton crop has immense importance in the economy of the country due to which different institutions of the country had took notice of the drastic decrease in the production of cotton in the country. They were forcing to take steps for the increase of production of the most important crop for the economy of the country.
Prices of seed cotton (Kapas/Phutti) in Sindh were in range from Rs 3200 to Rs 4300 per 40 Kgs and cotton is available from Sindh in range from Rs 8000 to Rs 9200 per maund (37.32 Kgs). In Punjab prices of seed cotton was in range from Rs 3300 to Rs 4400 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)
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 64.00 | 64.00 | 0.00 |
| Highest | 74.00 | 74.00 | 0.00 |
CRUDE OIL:
Crude Oil prices opened at USD 50.11 with lower level as compared to last week closing figures.
In this week, crude oil price showed mix sentiment and closed on positive side at the end of week.
In last day of the week, Crude Oil price closed at USD 50.32 with increase of USD 0.21 cents as of opening figure of week.
| Lowest | Highest | Change | |
| Price | 50.11 | 50.32 | -0.21 |
EXCHANGE RATE:
In last week values of Pak rupee showed slight fluctuation on both side 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 1.10 and British Pound also closed on negative note with figure 1.29 against USD
| Selling | Buying | |
| LC Sight | 153.68 | 153.63 |
| LC 120 Days | 147.45 | 147.40 |
| Open Market | 156.55 | 152.96 |
NEW YORK COTTON FUTURE:
New York Cotton futures opened on lower levels on Monday as compare to previous week’s closing figures.
NYCF showed upward trend in this week, while dropped slightly on closing session, hence closed on positive side by the end of week.
At last day of the week, MAR 2020 closed at 67.75 with increase of 91 points.
At last day of the week, MAY 2020 closed at 68.14 with rose of 80 points.
At last day of the week, JULY 2020 closed at 69.02 with upward of 80 points.
PAKISTAN YARN MARKET:
Local yarn market remained under sale pressure and mills were interested to make sale on current rates. Buyers kept away from buying and booked only urgent need from market.
Weavers were keeping close eye on market to get bottom and then will place orders and on the other hand, suppliers were resisting on these prices.
Currently no mill is carrying stock but sales coverage days are reducing graduality which is creating sale pressure.
PSF prices dropped Rs.5/kg by 3rd Feb 2020. PTA, MEG prices were decreased after adjustment of oil prices after dip up to US $50 and same followed by polyester fiber. For next week it is expected that price will remain stable for PSF in domestic market.
Faisalabad trading market was reported average business activity. Most of the traders were started advance buying in viscose yarn to build inventory well before start of season. Fine counts trade become little slow and blended yarn reported with limited numbers of sale.
Following are current asking prices of yarn in local market based on ex mills:
| Count | Price US$/Bale |
| 16/1 CD | 430 – 450 |
| 20/1 CD | 445 – 475 |
| 30/1 CD | 520 – 535 |
| 20/1 CM | 520 – 530 |
| 30/1 PC 52:48 | 410 – 445 |
| 40/1 CM | 650 – 670 |
| 60/1 CM | 935 – 960 |
| 80/1 CM | 1220 – 1315 |
EXPORT YARN MARKET:
Market remained dull and slow due to extended holidays in China and other regions. Major reason is threat of spreading Corona virus which has made business activity on halt. Fear of infection is now getting lower as precautions have been taken in all countries.
All customers and suppliers are keeping very close eye on the development of Corona virus as this has halt all business activities.
Cotton prices remained firm and stable this week which also put impact on yarn prices and suppliers showed stability. However, suppliers are trying to get orders as much as they can due to fear of slow activity in days to come.
Actual situation will get clear in next week once all markets including China and HK resume their working.
European customers were active and floated good numbers of enquiries. Few orders were also placed where customer achieved their target prices and deliveries.
Korean customers remained silent and no such business activity was witnessed.
HK customers were also silent due to holidays.
| 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 | 580 – 590 | 580 – 590 | 580 – 590 | 580 – 590 |
| 24/2 CD | 540 – 550 | 540 – 550 | 540 – 550 | – |
PAKISTAN FABRIC MARKET:
The local fabric remained firm till mid of week but towards the end of week showed slight softness due to decrease in yarn prices for both narrow and wider width fabrics.
Flow of inquiries slightly eased down for both narrow and wider width fabrics however weavers booked limited orders after tough negotiations at slightly reduced price level as compared to last week.
Weavers covered their narrow width looms till end March / early April’2020 and also covered their wider width looms till end April’2020 and onward deliveries are available with all major suppliers.
Local fabric prices of regular items are as follows.
|
EXPORT FABRIC MARKET:
Export Fabric market is still lackluster as customers are not showing interest in buying from Far Eastern and Asian sectors. Negligible inquiries were reported from Korea but no business was witnessed.
Average flow of inquiries was noticed from Japan, Bangladesh, Vietnam and Sri Lanka resultant limited buying in grey however dyed fabric business is maintaining the quantities.
Denim business is growing mainly in Bangladesh, Vietnam, Indonesia and Egypt.
Asking prices were stable with soft tone towards end of the week due to softness in raw material prices however it could not attract grey fabric buyers.
Currently good suppliers are booked till end of March and offering early April onward deliveries whereas average suppliers are also offering end March deliveries.
Good flow of inquiries were noticed from European and African countries.
Suppliers are getting good support from major markets like Germany, Portugal, Italy, Spain and South Africa both in narrow and wider width. At the same time, suppliers have developed good volumes in England, Czech Republic, Netherlands, Turkey and African countries.
Wider width suppliers are comfortably booked till end of April and offering May onward deliveries. They are keeping their prices stable due to good sales coverage. Most of the customers are facing deliveries issues for their wider width order thus they prefer to give some price premium if some one is offering good deliveries.
USA market remained slow during the week.
It is expected that European, African and USA markets will remain good in booking and prices may remain stable.
| Construction | Price US$/YD CNF Far East |
| 20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN | 1.14 – 1.16 |
| 16X12/108X56 63″ 3/1 | 1.24 – 1.26 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.96 – 0.98 |
BED LINEN & TOWELS:
The market remained promising for home textile and bedding as bookings for wider width fabric and their lead times were locked in at a minimum of 90 days. For repeat orders the leads times are locked in at 45 to 60 days depending on the order quantities.
Many inquiries have been placed with Pakistani manufacturers due to a general shift in USA – China trade war and now the novel Corona Virus. Because of the travel advisories issued against China, buyers of many renowned brands are looking towards Pakistan as a stable alternative.
GARMENTS:
Pakistan Apparel Industry hopes that 2020 will be a big year in terms of business volumes. Some of the Chinese traders tend to move productions to outsourcing centers with lower labour costs, skilled workforce and government incentives and Pakistan is one of the beneficiaries.
Customers from EU and USA are showing their interests as they have shared inquiries for FW20 programs. It is expected that with increase technologies and infrastructure with Pakistani garment factories business will increase. Chinese markets have been closed in recent past due to on going Corona Virus issues.
Factories are offering deliveries from end May 2020 onward depending upon the type of the garment.
GOING FORWARD:
In the local cotton market, dull business activity was observed due to decreasing trend of the stock of good quality lint. Spinning units are importing 45 Lac bales due to shortage in domestic market.
In Local yarn, it is expected that domestic yarn market will be soft in blended yarn and some correction is expected in cotton coarse yarn counts as well. Further price trends will be according to demand and supply of different counts which will lead price level.
Export yarn market showed lackluster business activity due to holidays in most of the parts. Some markets will resume working in next week whereas some will be back after 10th Feb. hence, we might see slow business activity for next week as well.
Local fabric market expected to remain firm and steady for both narrow and wider width looms for coming weeks.
Export Fabric improved business activity is expected from Far Eastern and Asian markets in coming days.
European and USA buyers will keep on buying good volume mainly in wider width fabrics however prices are expected to remain stable.
Pakistan’s apparel industry is expecting sizeable placements from customers which will keep filling factories capacities for smooth deliveries.
By next week in Bedding & Towels market, new placements will be negotiated with competitive prices and an overall betterments is being observed in the coming days ahead.
