PAKISTAN COTTON MARKET:
In the local cotton market, sluggish trend was seen. Textile and spinning mills were remained on sidelines and didn’t show interest in buying. So overall cotton business volume witnessed continuous decline.
Ginners are suffering due to the non-interest of millers in the purchase of cotton. Although, ginners had the limited stock of 4 lac bales out of which only 25 percent cotton is of good quality
In the local cotton market, the prices of cotton remained stable. The Spot Rate was remained stable at the level of 9000 in this week, due to the slow business activity prices didn’t show any changes. Due to the limited stock available by local ginners the rate of cotton was not decreased but it was stabled. It is understood that along with international market cotton market was under pressure.
There is a tremendous fall in international markets. It’s negative effects were seen on cotton trade especially bearish trend was witnessed in New York Cotton which was at lowest level of 59 cent lowest than 60 cent. Due to its negative impact cotton prices in the world have dropped significantly.
According to the weekly report of USDA exports were increased by 22 percent as compared to last week. Pakistan has imported largest number of bales which is one lac sixty-one thousand and six hundred.
Despite that positive impact was not seen in the rate of New York Cotton due to which the local textile mills has adopted the policy of wait and see. Another reason is that due to extraordinary circumstances they are avoiding trading in cotton. However, due to the low production of cotton in the country textile sector has signed agreements for the import of 50 lac bales from abroad. The delivery of bales has started however there is a delay in shipments especially delivery of the bales imported from Afghanistan and Central Asia is stopped.
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 9000 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 9000 per maund (37.32 Kgs). Overall deals were made between the range of USC 61~62 Lbs. (8000~9,000/ maund).
|Opening Of the Week||Closing Of the Week||Change|
Crude Oil prices opened at USD 31.13 with lower level as compared to last week closing figures.
In this week, crude oil price showed mix sentiment, hence closed on positive side at the end of week.
In last day of the week, Crude Oil price closed at USD 31.73 with increase of USD 0.60 cents as of opening figure of week.
In last week values of Pak rupee depreciated 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 1.23 against USD.
|LC 120 Days||156.17||156.12|
NEW YORK COTTON FUTURE:
New York Cotton futures opened on lower levels on Monday as compare to previous week’s closing figures.
NYCF showed mix trend in this week and closed on negative side by the end of week.
At last day of the week, MAY 2020 closed at 60.49 with drop of 72 points.
At last day of the week, JULY 2020 closed at 60.35 with downward of 115 points.
At last day of the week, OCT 2020 closed at 61.10 with decline of 106 point.
PAKISTAN YARN MARKET:
Local yarn market become little firm due to reasonable activity by end of this week in domestic market. Due to drop in Pak rupee against US$ it give some support thus buyers make orders for the pending booking. This extended sale position of spinning mills for 20~25days on average.
PSF prices remained stable during this week ended. PTA, MEG prices were decreased after big decline of oil prices in international market and same followed by polyester fiber.
For next week it is expected that price will remain same due to US$ position or may down for Rs.2/kg further.
Faisalabad trading market was reported average business activity. Most of traders was busy in their routine counts buying Carded yarn and viscose yarn. Blended yarn activity was average reported in market.
Following are current asking prices of yarn in local market based on ex mills:
|16/1 CD||420 – 435|
|20/1 CD||435 – 460|
|30/1 CD||500 – 515|
|20/1 CM||510 – 520|
|30/1 PC 52:48||400 – 425|
|40/1 CM||630 – 650|
|60/1 CM||920 – 940|
|80/1 CM||1195 – 1285|
EXPORT YARN MARKET:
Market showed betterment this week from China as they are coming back to business activities slowly gradually. However, European region remained in chaos due to outbreak of Corona Virus in the whole region.
Stock markets remained under bearish sentiments and showed continuous slash for the whole week.
If we talk about sales position of suppliers, they are comfortable booked till mid-April and at the same time, the good news is that lc’s of pending orders also started to open partially.
Mainly pressure is on coarse count suppliers who are based on Chinese market because unfortunately Chinese customers are still working partially due to Corona Virus.
However, they have started the working and all suppliers are also getting L/Cs for existing orders.
At the same time, some new orders were also placed which is a sign of relief for suppliers.
All major suppliers in Pakistan are carrying cotton of at least 6 month which is incurring them huge cost. So, if market kept on declining, they will face heavy losses.
European customers remained side line due to severe outbreak of Corona virus in all the countries. This has forced all big brands to close their stores country wide and customers have started to hold the shipments under this scenario.
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.
|16/1 CD||430 – 440||430 – 440||430 – 440||430 – 440|
|20/1 CD||440 – 450||440 – 450||440 – 450||440 – 450|
|20/1 CM||495 – 505||495 – 505||495 – 505||495 – 505|
|32/1 CD HOS UNWAXED 100% COT.||–||–||–||–|
|30/1 CM||550 – 560||550 – 560||550 – 560||550 – 560|
|32/1 CM||560 – 570||560 – 570||560 – 570||560 – 570|
|24/2 CD||535 – 545||535 – 545||535 – 545||–|
PAKISTAN FABRIC MARKET:
The local fabric market remained firm throughout the week for both narrow and wider width fabrics. Slow activity reported in the market as buyers floated limited inquiries.
Buyer’s booked limited orders as tug of war continued between supplier and buyer due to which buyers could not place their required quantities. However keeping in view current booking situation weavers booked orders with increased inflows for both narrow and wider width fabrics.
Local fabric prices of regular items are as follows.
|Construction||Price US$/YD ExMill|
|20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN||1.09 – 1.11|
|16X12/108X56 63″ 3/1||1.19 – 1.21|
|20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN||0.91 – 0.93|
EXPORT FABRIC MARKET:
Export fabric market remained mixed as some of the customers are taking interest in fresh buying and some of them are away of buying due to fear of COVID-19 ( Corona virus) spreading rapidly.
Korean customers have exchanged limited inquiry however no business was materialized. Limited inquiries were received from China resultant limited booking during the week. Bangladesh, Japan, Vietnam, Indonesia, Thailand, Sri Lankan markets also remained mixed with limited buying activity.
The prices were stable due to stable raw material prices.
Currently good suppliers are booked till mid of May and offering end May onward deliveries whereas average suppliers are booked till end of April and offering early ~ mid May onward deliveries.
It is expected that business activity may remain slow in coming days.
European markets were slow during the week as customers are not taking interest in fresh buying. Only limited inquiries were received from Germany, USA and African origin resultant limited buying with selected suppliers.Wider width suppliers have further extended their booking till June and now most of them are offering July onward deliveries.
Following were the closing rates base on CNF Far Eastern ports.
|Construction||Price US$/YD CNF Far East|
|20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN||1.10 – 1.12|
|16X12/108X56 63″ 3/1||1.20 – 1.22|
|20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN||0.92 – 0.94|
Bedding & Towels:
industry is going strong despite various reports on a slowdown in the market due to Corona Virus. The factories has stocked in their raw materials for their currently running productions. In the coming weeks it seems doubtful that the deliveries will be met, however the main change being experienced is customers asking for delivery extensions due to the lockdowns at major ports across Europe and North American markets.
Internally the productions are running at full capacity. The earliest deliveries of greige is expected up to 150 days, where in-stock fabric is also being offered by multiple sources in which quality is not a main concern for the end buyer.
Coronavirus is continuing to disrupt the apparel and textile supply chain globally. Due to Chinese factories closure currently Pakistani garment factories have started working on alternate sources for raw materials import to cater existing garment order deliveries without any disturbance.
Continuing disruption has resulted Clothing Gap Inc expect to get a hit of USD 100m during first quarter. Other brands are also working on alternate plans to deal with falling demand and supply chain disruption.
With the consistent performance in the recent past, the Pakistan’s garment industry has brought the change with the introduction of innovative technology and eco-friendly fabrics to further strengthen the areas of design management, inventory management and product life cycle management. Factories in Pakistan are offering end June onward deliveries now according to the type of the garments.
Local cotton market was slow. The Weaving and spinning units were aside of buying.
In the local cotton market, the prices of cotton remained stable. The Spot Rate was remained stable at the level of 9000 in this week, due to the slow business. Despite of slow business, Local yarn prices are expected to remain stable. Further price trends will be according to demand and supply of different counts which will lead price level.
Local fabric market is expected to remain firm and steady for coming weeks.
Market showed improved business activity for Export yarn market as customers form China started to place some orders. At the same time, lcs are opened as well.
Export fabric market expected that business activity may remain slow in coming days.
Any exponential increase in the number of cases of Corona Virus in Pakistan will lead to production being revised or a slowdown will be experienced in the exports.
The number of confirmed cases in Pakistan of COVID-19 has risen to 51 however no casulaity is reported so far. The quarantine measures have been taken for around 2000+ number of people those flying in from abroad and specially from Iran (the pilgrims visiting their holy sites) and business travelers from any country. By now many Airlines have already suspended the flight operations to Pakistan till further notice. Pakistan Government is closely watching the situation and they have already closed schools across the country.
At the same time, due to spread of Coronavirus in Europe, USA and other countries, many customers has already started to hold the shipments. Moreover, economic crisis worldwide is also effecting Pakistan stocks and economy which is causing turbulence for business activities as well.
Apart from the on going global corona disruption, Pakistani garment factories are a better choice of foreign customers due to increased technology and sustainable products.