PAKISTAN COTTON MARKET:
In the local cotton market, decreasing trend was seen by the textile mills Under the influence of international cotton market and due to the decreasing trend of the stock of good quality lint. Trading volume continued to decline and needy buyers were on cautious buying only.
The ginning factories were also closing due to end of cotton season. The buying of local cotton has decreased because the delivery of cotton imported by big groups has started.
Currently, ginners had the stock of eight million bales while remaining two hundred thousand bales will be imported. In this way the total production of cotton in the country will be 8.5 million bales. The agreements for the import of 4.5 million bales have been signed and more agreements were in the pipe line. 6 million bales worth around two billion dollars will be imported so far.
In the local cotton market during the last week the prices were decreased of fine quality lint from 100~~200 Rs. per maund. The Spot Rate also decreased rs.50 and touched the level of 9000 in this week.
The corona virus is having a negative impact on international markets. Its effects were also seen on cotton market as New York Cotton comes down. NYCF down by three cent and was less than 68 American cents.
Although, as per last week report of USDA the export of cotton increased by 13 percent particularly China has again starting importing American cotton. China has signed agreements for the import of one hundred and ninety thousand bales of American cotton but against the expectations instead of increasing the rate of New York Cotton comes down. In China, there were holidays due to the Lunar Festival but due to the spread of corona virus holidays were extended. So, there is no business. There is fluctuation in Indian cotton market. In the local cotton market slow trend was witnessed.
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 | 72.00 | 74.00 | -2.00 |
CRUDE OIL:
Crude Oil prices opened at USD 53.14 with lower level as compared to last week closing figures.
In this week, crude oil price rose in next day, later showed downward trend and closed on negative side at the end of week.
In last day of the week, Crude Oil price closed at USD 51.56 with decrease of USD 1.58 cents as of opening figure of week.
| Lowest | Highest | Change | |
| Price | 53.14 | 51.56 | 1.58 |
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 positive note with figure of 1.11 and British Pound also closed on positive note with figure 1.32 against USD
| Selling | Buying | |
| LC Sight | 153.58 | 153.53 |
| LC 120 Days | 147.39 | 147.34 |
| Open Market | 156.45 | 152.86 |
NEW YORK COTTON FUTURE:
New York Cotton futures opened on slight levels on Monday as compare to previous week’s closing figures.
NYCF took jump in subsequent day, later showed downward trend till closing, hence closed on negative side by the end of week.
At last day of the week, MAR 2020 closed at 67.50 with decrease of 201 points.
At last day of the week, MAY 2020 closed at 68.31 with drop of 163 points.
At last day of the week, JULY 2020 closed at 69.19 with downward of 149 points.
PAKISTAN YARN MARKET:
Local yarn market was in under sale pressure after few good weeks. Most of mills were interested to sell on these rates, kept in mind that this is maximum level of prices and should sell in good numbers. Still no mill is carrying any big stock but still due to good rate they were more interested in further sales. On the other hand, weavers were waiting for correction in prices thus limited buying placed during this week ended.
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 was reported average business activity. Most of 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.
Future Trend :-
It is expected that domestic yarn market will be stable in blended yarn and some correction is expected in cotton yarn counts. Further price trends will be according to demand and supply of different counts which will lead price level.
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 – 480 |
| 30/1 CD | 520 – 535 |
| 20/1 CM | 520 – 530 |
| 30/1 PC 52:48 | 415 – 450 |
| 40/1 CM | 650 – 670 |
| 60/1 CM | 935 – 970 |
| 80/1 CM | 1220 – 1315 |
EXPORT YARN MARKET:
Market remained almost silent 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 measures have been taken in all countries. Anyhow, business remained slow with limited enquiries. This has also put a major impact on cotton prices internationally and we might see more pressure in days to come.
However, suppliers are trying to stay firm as they have sold handsome quantities and don’t want to reduce their prices. 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 price and deliveries.
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 | 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:
In current week under review the local fabric market showed steady and firm trend for both narrow and wider width fabrics.
Weavers received inquiries for both narrow and wider width fabrics and also booked orders after tough negotiations at last week price level but in limited numbers.
Weavers are now booked in narrow width till 15-20th March whereas they have covered their wider width looms till early April’2020 and offering onward deliveries.
Local fabric prices of regular items are as follows.
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EXPORT FABRIC MARKET:
Export Fabric Far Eastern customers are not active now a days as they are just limited inquiries sharing resultant no considerable business was reported. Korean customers have exchanged basic item inquiries towards end of the week. Chinese customers did not share their inquiries. Limited inquiries were received from Bangladesh, Vietnam and Japan.
Asking prices remained stable and firm due to stable raw material prices.
Suppliers are chasing their customers for new orders as its been few weeks that narrow width fabric business is slow from all sectors / markets.
Currently good suppliers are booked till mid of March and offering end March onward deliveries whereas average suppliers are booked till end of Feb and offering early ~ mid March onward deliveries.
It is forecasted that Asian and Far eastern markets may remain slow and prices are expected to remain stable.
European customers remained mixed. Good number of inquiries received from Germany, Italy, Spain and Portugal. The business activity is improving with African customers.
USA buyers have exchanged limited inquiries resultant limited buying during the week.
Wider width suppliers extended their sales with their European and African buyers hence they are offering April
~ May onward deliveries.
Prices for wider with remained stable during the week under review.
Suppliers are expecting good orders from USA, Europe and Africa in coming days.
Following were the prices for regular items 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 | 0.96 – 0.98 |
BED LINEN & TOWELS:
Bedding & Towels market was busy during the week. Factories in Faisalabad, Lahore, Multan and Karachi are working at their set capacities however they have been quoting very competitive prices to capture future orders.
Repeat orders are being delivered in 50 to 60 days and for new orders 80 ~ 90 days due to shortage of loom availability and immense order placements with the suppliers.
Post Heimtextil outcome has brought sizeable bookings for conventional constructions but order for organic and recycled are yet to be finalized, already in pipeline. But quite many factories are delivering last year’s orders with sustainable offerings.
GARMENTS:
The Apparel industry in Pakistan is playing a vital role in value addition of textile sector. Globally, the ready-made garments industry is regarded as a buyer driven value chain whereby retailers and brands decentralize the production processes.
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. While country’s core performance has already been recognized in setting up standards on material performances, washings etc, the industry is foreseeing to set up pace for 3S’s concept Speed, Skill and Sustainability to secure significant position in manufacturing game.
Order situation with Factories in Pakistan is healthy as lead time is being asked from seventy days for basic articles while for fashioned articles it goes up to ninety days.
GOING FORWARD:
Local yarn market showed sluggish 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 yarn for China market was slow during the week and expected to remain slow in next week due to impact of Corona virus.
European markets are active and will remain same in coming days with good demand.
Far eastern markets remained slow however European and African customers were active. Prices for both narrow and wider width remained stable and firm. It is expected that business activity will improve in coming days especially for wider width however narrow width activity will remain slow.
The Garment industry has accepted a tremendous growth in their business and with the favorable policies of current Government it is likely to accelerate further in the year 2020.
This year has closed well and placements are satisfactory with the Garment industry. Prices are expected to be stable for the coming days ahead.
