PAKISTAN COTTON MARKET:
In the local cotton market during last week, cotton trading couldn’t improve as buyers were still away from current buying of cotton while ginners had the stock of 5 lac bales and they were looking for the buyers.
As there was no business, so the prices were on downward side, The KCA spot rate dropped rs. 200 and touched the level of Rs 8400 per maund. The rate of cotton in Sindh and Punjab is in between Rs 7800 to Rs 8600 per maund.
Partial arrival of new cotton crop from lower areas of Sindh has started.
The sowing has completed in the lower areas of Sindh and now the sowing has started in the upper areas of Sindh as well as in Punjab. The farmers were complaining regarding the low germination value of seeds. On the other hand, farmers are in panic. Contradictory opinions on cotton support price and increasing threat of attack of Locusts.
Pakistan Cotton Ginners Association releases final report of cotton production by May 31, but this year because of lockdown and Covid-19, the final report has not been released yet. It is expected that report may be released by June 15.
Cotton crop may face three types of threats, one is poor seed the other is severe locust attack and now the meteorological department has forecast that the rains will continue in the country from July to Sep this year. It is too early to say anything about the cotton crop, but market sources and some farmers, especially in the Punjab, are hinting at a significant reduction in the crop.
The New York Cotton Market was up during the week due to low rainfall and drought in the US cotton producing state of Texas. Correction was witnessed in the Rate of New York cotton due to the confrontation between China and the US and the decrease in export as compared to previous week in the US weekly export report. Increasing trend was witnessed in the rate of cotton in both China and India.
Prices of cotton is available from Sindh in range from Rs 7800 to Rs 8500 per maund (37.32 Kgs). In Punjab prices in range from Rs 8000 to Rs 8600 per maund (37.32 Kgs). Overall prices were in the range of USC 58~64 Lbs. (7800~8,600/ maund).
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 59.00 | 59.00 | 0.00 |
| Highest | 64.00 | 64.00 | 0.00 |
CRUDE OIL:
Crude Oil prices opened at USD 35.44 with slight lower level as compared to last week closing figures.
In this week, crude oil price showed upward trend and closed on positive side at the end of week.
In last day of the week, Crude Oil price closed at USD 39.09 with increase of USD 3.65 cents as of opening figure of week.
| Lowest | Highest | Change | |
| Price | 35.44 | 39.09 | -3.65 |
EXCHANGE RATE:
Showed mix trend in both Interbank and open markets.
At the end of week, Euro closed on a positive note with figure of 1.13 and British Pound also closed on positive note with figure 1.27 against USD.
| Selling | Buying | |
| LC Sight | 163.38 | 163.33 |
| LC 120 Days | 161.38 | 161.33 |
| Open Market | 165.64 | 161.87 |
NEW YORK COTTON FUTURE:
New York Cotton futures opened on higher levels on Monday as compare to previous week’s closing figures.
NYCF showed upward trend in this week, only dropped in one session by mid of week, hence closed on positive side by the end of week.
At last day of the week, JULY 2020 closed at 62.25 with rose of 219 points.
At last day of the week, OCT 2020 closed at 60.33 with surge up of 176 point.
At last day of the week, DEC 2020 closed at 61.04 with increase of 233 point.
PAKISTAN YARN MARKET:
Local yarn market remained under sale pressure as average business activity was reported during the week. Most of the weavers were shifted in house hence they are buying yarn from their own spinning units. Suppliers are interested to work out any reasonable target price from their customers to get the orders. At the same time, no one mill is carrying stocks however can manage customer required deliveries.
PSF prices dropped by Rs.2/kg in domestic market during this week. PTA, MEG prices were stable after stable prices of oil in international market and same followed by International polyester fiber.
Faisalabad trading market started working thus some business resumed and traders are interested to reduce their stocks. Major buying was reported in staple fiber and normal business activity was made.
About future market it is expected that domestic yarn market will be remained under sale pressure for next few weeks and cash crunch is still in market related to major units.
Following are current asking prices of yarn in local market based on ex mills:
| Count | Price US$/Bale |
| 16/1 CD | 365 – 380 |
| 20/1 CD | 385 – 405 |
| 30/1 CD | 450 – 460 |
| 20/1 CM | 455 – 470 |
| 30/1 PC 52:48 | 365 – 385 |
| 40/1 CM | 535 – 565 |
| 60/1 CM | 795 – 830 |
| 80/1 CM | 1090 – 1200 |
EXPORT YARN MARKET:
Market remained under mix tone as China showed better activity whereas European customers were silent.
Over all business showed slight pace as cotton prices worldwide were also increased.
We might see some betterment in days to come as well.
Suppliers are also coming in comfortable zone as the pressure they were facing in May has been reduced due to minimized stocks.
Customers are also responding well and placing orders. At the same time, lifting of containers have been good as well in recent time.
Chinese customers booked handsome quantities at their required prices. we might see some more activity in days to come.
Korean customer remained silent and minimal enquiries were received.
European customers are slow and very limited enquiries were received for specialized items only.
Market is getting better in terms of enquirers and orders. We might see same pace in days to come
| Count | Korea | Hong Kong | Taiwan | Japan |
| 16/1 CD | 390 – 400 | 390 – 400 | 390 – 400 | 390 – 400 |
| 20/1 CD | 400 – 410 | 400 – 410 | 400 – 410 | 400 – 410 |
| 20/1 CM | 470 – 480 | 470 – 480 | 470 – 480 | 470 – 480 |
| 30/1 CD | – | – | – | – |
| 32/1 CD HOS UNWAXED 100% COT. | – | – | – | – |
| 30/1 CM | 495 – 505 | 495 – 505 | 495 – 505 | 495 – 505 |
| 32/1 CM | 505 – 515 | 505 – 515 | 505 – 515 | 505 – 515 |
| 24/2 CD | 460 – 470 | 460 – 470 | 460 – 470 | – |
PAKISTAN FABRIC MARKET:
The local fabric market remained standstill and dull market sentiments prevailed throughout the week due to holding orders by the brands with dyeing units. Almost negligible business was reported for both narrow and wider width fabric. Weavers are open for negotiations and asking for target prices.
Narrow width weavers are offering early-mid July’20 onward delivery whereas wider width fabric deliveries are available with end July/early August onward. Sulzer looms sector also remained clueless and reports of negligible business received from market.
In coming week local fabric market may eased down by 1-2% as weavers are under pressure to cover their urgent coming looms.
Local Fabric prices of regular items are as follows:
| Construction | Price US$/YD ExMill |
| 20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN | 0.92 – 0.94 |
| 16X12/108X56 63″ 3/1 | 1.04 – 1.06 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.76 – 0.78 |
EXPORT FABRIC MARKET:
The week started with good trading activity and closed with healthy business from some of the Far Eastern and Asian markets. Korean, Japan and Chinese customers have booked decent quantities of sheeting fabric however other markets like Vietnam, Hong Kong, Malaysia and Sri Lanka was slow.
The yarn prices increased due to hike in US. Dollar against Pak Rupee however suppliers could manage to confirm customer target prices which were 3~4% lower than their asking prices.
Currently good suppliers are booked till mid of July and offering end July onward deliveries and average suppliers are booked till end of June and offering mid July onward deliveries.
Suppliers are mostly chasing all of the orders with their customers due to less business overall in the market. It is expected that business activity may remain slow in coming days and prices are expected to remain stable and soft.
Limited number of inquiries were observed from European and USA market during the week. No considerable business was witnessed from Europe and USA due to slow demand in general ,Wider width suppliers are booked till end of July and offering early ~ mid Aug onward deliveries.
Narrow width for European customers are looking orders for early July productions. Suppliers are not optimistic for healthy business from Europe and USA at least for next couple of weeks.
Far Eastern markets are responding well with healthy business activity. The raw material prices jumped up by 2% due to local currency depreciation against US. Dollar however suppliers are not refusing customer target prices and managing the same somehow. USA and European markets are quite and expected to remain slow in next couple of weeks.
Following were the prices based on CNF Far eastern ports :-
| Construction | Price US$/YD CNF Far East |
| 20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN | 0.95 – 0.97 |
| 16X12/108X56 63″ 3/1 | 1.04 – 1.06 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.80 – 0.82 |
BED LINEN & TOWELS:
Bedding & towels market has remained in the recovery mode during the last week. The factories had been busy completing the orders which were re-confirmed to them post lockdown.
Whereas prices have remained on the higher end due to supply limitation but this will get better ultimately in the coming days as the spinners are working towards meeting the demand from value added units.
On the other hand the demand from abroad is not very promising but the hope for gaining further order continues as inquiries have starting coming in for the second week in a row.
Coming weeks will see a rise in demand and a slight reduction in prices if the supply stays at par.
GARMENTS:
Moderate business activity resumed in garment industry of Pakistan during Covid-19 scenario. Buyers from EU and USA have started sharing inquiries and limited business materialization also reported. Factories are working under strict compliance of SOPs as corona cases increased rapidly in Pakistan during recent days. They have to keep the required social distance amongst the stitching lines which have been redesigned accordingly.
Though factories are not running at their full capacities yet beginning of new orders are a healthy sign for them to continue production and retain their work force. Lately face masks orders from US and EU have helped factories here to fill their part of production capacities.
Garment Industry of Pakistan is expecting to get back to normal routine gradually as buyers from US and EU have started sharing inquiries and placed some orders as well.
GOING FORWARD:
Local yarn market remained under sales pressure during the week and expected to remain under sale pressure for next few weeks. The cash crunch problem is still in market related to major units.
Local fabric market has slow business activity and expected to ease down the price by 1-2% as weavers are under pressure to cover their urgent coming looms.
Export yarn is doing well as market is getting better in terms of enquirers and orders. We might see same pace in days to come.
Far Eastern markets for export fabrics are responding well with healthy business activity. The raw material prices jumped up by 2% due to local currency depreciation against US. Dollar however suppliers are not refusing customer target prices and managing the same somehow. USA and European markets are quite and expected to remain slow in next couple of weeks.
Garment Industry of Pakistan is expecting to get back to normal routine gradually as buyers from US and EU have started sharing inquiries and placed some orders as well.
Local cotton market could not improve during the week. Prices dropped down due to less demand. Partial arrival of new cotton started. Some of the Punjab area is still sowing the cotton. The new cotton is facing poor seed problem, locust attach problems. The crop size may less this year however will have exact details after few weeks.
Home textile sectors is expected a rise in demand and a slight reduction in prices if the supply stays at par.
