PAKISTAN COTTON MARKET:
In the local cotton market, moderate activity was observed by textile and spinning sectors. The buyers showed interest in the buying of good quality cotton. Less interest was shown by them in the trading of low-quality cotton. Although stock of the cotton was decreasing day by day.
The ginners had left the stock of 700,000 bales out of which the good quality cotton is available in small amount. Big textile groups are relying on imported cotton. The delivery of cotton is arriving. According to the private importers of cotton agreements for the import of 48 lac cotton bales had been signed. Day by day more contracts are also being signed. According to the sources of All Pakistan Textile Mills Association (APTMA) 55 lac bales of cotton will have to be imported to fulfill the demands of local industry.
In the local cotton market, the prices of cotton remained stable. There are two major threats to the cotton crop for the next season. The germination process of seeds is alarmingly low. Emergency should be imposed to control Locust swarm. India, Vietnam, Bangladesh are taking advantage of Corona Virus in China. The Spot Rate dropped Rs. 50 and came at the level of 9050 in this week.
According to China they are going to announce subsidy on 700 American items from March 2nd. Due to this the rate of New York Cotton increased by two cent. As per information China is again going to import cotton from America. However, in China the trade is affected due to the uncertainty. The effects of uncertainty are seen on the cotton and textile products.
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 | 76.00 | 75.00 | 1.00 |
CRUDE OIL:
Crude Oil prices opened at USD 52.05 with higher level as compared to last week closing figures.
In this week, crude oil price showed upward trend, while dropped in last session, hence , closed on positive side at the end of week.
In last day of the week, Crude Oil price closed at USD 53.38 with increase of USD 1.33 cents as of opening figure of week.
| Lowest | Highest | Change | |
| Price | 52.05 | 53.38 | -1.33 |
EXCHANGE RATE:
In last week values of Pak rupee showed slight improvement 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 1.08 and British Pound also closed on negative note with figure 1.29 against USD.
| Selling | Buying | |
| LC Sight | 153.38 | 153.33 |
| LC 120 Days | 147.14 | 147.09 |
| Open Market | 156.25 | 152.66 |
NEW YORK COTTON FUTURE:
New York Cotton futures opened on higher levels on Tuesday as compare to previous week’s closing figures.
NYCF showed mix trend in this week, hence closed on positive side by the end of week.
At last day of the week, MAR 2020 closed at 68.93 with increase of 106 points.
At last day of the week, MAY 2020 closed at 69.00 with rose of 13 points.
At last day of the week, JULY 2020 closed at 69.84 with upward of 14 points.
PAKISTAN YARN MARKET:
Local yarn market remained stable in term of asking prices and average in term of business finalization. Most of the mills were resisting on prices thus refusing to lower down their prices. They are trying to sell yarn as per their offered prices. Export toward china also given some relief that is why local sales pressure on mills were reduced due to good activity made in exports. On the other hand, weavers were targeting to get yarn in their rates and some how covered quantities against their buying.
PSF prices dropped Rs.3/kg by 17th Feb 2020. PTA, MEG prices were decreased after adjustment of oil prices after dip till US $50 and same followed by polyester fiber.
Faisalabad trading market was reported average business activity. Most of traders were busy in their viscose yarn buying as next season started. Fine counts demand was average and blended yarn also reported at stable prices.
Following are current asking prices of yarn in local market based on ex mills:
| Count | Price US$/Bale |
| 16/1 CD | 430 – 445 |
| 20/1 CD | 445 – 475 |
| 30/1 CD | 510 – 530 |
| 20/1 CM | 520 – 530 |
| 30/1 PC 52:48 | 410 – 440 |
| 40/1 CM | 650 – 665 |
| 60/1 CM | 935 – 965 |
| 80/1 CM | 1220 – 1315 |
EXPORT YARN MARKET:
Market remained improved business activity as compared to last couple of weeks.
It is expected that market will show better activity in next week as customers in China and neighboring countries are resuming their work.
So, we might see business activity to be resumed as normal in days to come.
At the same time, suppliers were under immense pressure before current week as there was no sign of buying from customers. However, activity of this week has relived them and they are again aggressive to catch orders.
Situation of Corona Virus seems to be under control as Chinese government has taken precautionary measures to handle this epidemic well.
European customers remained active and kept on floating good numbers of enquiries. However, order materialization remained minimal and few deals were closed where customers matched their target prices.
Cotton prices in domestic and international markets remained firm and stable with minor fluctuations.
So, we might not see big movement in prices and it is expected that prices will remained firm and stable.
Korean customers remained silent and no such business activity was witnessed.
HK customers also remained silent due to holidays.
| Count | Korea | HongKong | Taiwan | Japan |
| 16/1 CD | 440 – 450 | 440 – 450 | 440 – 450 | 440 – 450 |
| 20/1 CD | 450 – 460 | 450 – 460 | 450 – 460 | 450 – 460 |
| 20/1 CM | 505 – 515 | 505 – 515 | 505 – 515 | 505 – 515 |
| 30/1 CD | – | – | – | – |
| 32/1 CD HOS UNWAXED 100% COT. | – | – | – | – |
| 30/1 CM | 560 – 570 | 560 – 570 | 560 – 570 | 560 – 570 |
| 32/1 CM | 570 – 580 | 570 – 580 | 570 – 580 | 570 – 580 |
| 24/2 CD | 540 – 550 | 540 – 550 | 540 – 550 | 540 – 550 |
PAKISTAN FABRIC MARKET:
In current week under review the local fabric continued its slow trend throughout the week. However prices slightly softened as compared to last week for both narrow and wider width fabrics.
Buyers shared inquiries in limited numbers 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.
Buyers are in search of March-mid April delivery whereas weavers have booking in had till 3rd week April~ End-April due to which some bulk orders could not be materialized for narrow width.
Weavers covered their narrow width loom till mid-April’2020 and booked in wider width till end April/early May’2020 and offering onward deliveries.
Local fabric prices of regular items are as follows.
| Construction | Price US$/YD ExMill |
| 20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN | 1.07 – 1.09 |
| 16X12/108X56 63″ 3/1 | 1.16 – 1.18 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.90 – 0.91 |
EXPORT FABRIC MARKET:
Fareastern and Asian markets remaind mixed. Limited inquiries were received from Korea and China however no buying was witnessed. Good number of inquiries were received from Japan, Bangladesh, Thailand and Vietnam resultant limited buying with selected suppliers.
Asking prices were stable with soft tone due to little bit softness in raw material prices.
Currenty good suppliers are booked till mid of April and offering end April onward deliveries wereas average suppliers are booked till mid of March and offering end March ~ early April deliveries.
Suppliers are expected good flow of inquiries in coming days.
Flow of inquiries from Europe is much improved. Suppliers are getting good orders from Belgium, Brazil, Italy, England, Turkey, Spain and Germany both in narrow and wider width fabrics.
Customers for wider width are facing difficulty to get their required deliveries because most of the suppliers are offering June onward deliveries.
USA market was mixed with limited inquiry resultant limited buying both in narrow and wider width.
Following were the closing rates based on CNF Far Eastern ports.
| Construction | Price US$/YD CNF Far East |
| 20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN | 1.14 – 1.16 |
| 16X12/108X56 63″ 3/1 | 1.24 – 1.26 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.92 – 0.94 |
BED LINEN & TOWELS:
The weavers in the wider width market are running at full capacity and new investment in additional looms is required at urgent pace otherwise lead times will be dragged and customers will be turned away.
Pakistan’s main USP in the bedding market is Prints. The country has ample of rotary and digital printing setups and can handle enough orders because currently the processing plants are running at 70% to 80% of their capacities at any one given time. It is not because they do not have enough order but they are running lesser screens to achieve optimal cost benefit.
GARMENTS:
The development flows in garments industry have been increased recently. There is a 26% volumetric growth in textiles export. Besides, the export of finished goods including apparel is on the rise.
The world textile buyers have diverted their purchasing orders to Pakistan since China (70-80% production) is closed to fight against spread of the coronavirus.
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.
Factories in Pakistan are running in their full capacities for the orders in hand for upcoming seasons. At the moment available deliveries with the factories are from June2020 onward depending upon the order size and types of the garment.
GOING FORWARD:
In the local cotton market, moderate activity was observed. The ginners have only stock of 700K bales. Due to less cotton this season, 5.5 million bales is being imported by Pakistan to fulfill the demand.
Local yarn is expected that price will remain stable for PSF in domestic market.
About future market it is expected that domestic yarn market will be stable. Further price trends will be according to demand and supply of different counts which will lead price level.
Local fabric market may tend to continue with same trend for both narrow and wider width looms for coming weeks with mixed trading activity.
Far Eastern markets are expected to remain good in buying for coming days.
European customers are very active as they are buying good quantities both in narrow and wider width and expected to remain good in coming days.
Market showed betterment as customers has started buying where they matched required prices and deliveries. Hence, we might see improved business activity in week to come as some enquiries are under discussion which are expected to be materialize in week to come.
A very bright and flourishing future is ahead for the apparel industry of Pakistan as garment industry have shown a noticeable growth in terms of orders received from buyers around the globe and fulfilling those orders according to the requirements.
Home Textile leads time for new orders are restricted to 80 to 90 days going forward where as repeats are down to 30 to 40 days depending on fabric availability and pre-approved designs
