PAKISTAN COTTON MARKET:
Local cotton market remained on same pace during this week as nominal business activity has been witnessed. Quality of the Phutti was affected due to rains in Sindh . New cotton crop 2020-21 deals were traded in between of Rs 7500~8900/maund based on quality lint. unginned cotton of Sindh was sold in between Rs. 4,000 to Rs. 4,350 per 40 kg.
The rate of unginned in Punjab is in between Rs. 4,300 to Rs. 4,400 per 40 kg. The supply of unginned was also affected due to rains in Sindh while the supply in Punjab was recorded higher than usual.
Increase in the import price was witnessed due to increase in the rate of dollar the local mills had increased the buying of local cotton. Due to the opening of world markets textile and retail buyers were involved in aggressive buying. If we look at the international front, cotton prices are stable and we might see market under the same pace. Mills have started to cover good quality cotton due to high USD parity which will put a major impact on cotton prices.
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 54.00 | 54.00 | 0.00 |
| Highest | 64.00 | 64.00 | 0.00 |
CRUDE OIL:
Crude Oil prices opened with the increase as of last weeks closing figure. Afterwards, it remained firm and stable with minor ups and downs. At the end of the week, Crude Oil closed at 40.55 with the minute drop of 0.08.
| Lowest | Highest | Change | |
| Price | 40.63 | 40.55 | 0.08 |
EXCHANGE RATE:
In last week values of Pak rupee remain stable against US Dollar’s, other major currencies showed mix trend in both Inter bank and open markets.
| Selling | Buying | |
| LC Sight | 166.54 | 166.49 |
| LC 120 Days | 165.48 | 165.43 |
| Open Market | 168.77 | 164.93 |
NEW YORK COTTON FUTURE:
NYCF opened in this week with firm note. Afterwards, it showed positive development and kept on adding points till last trading session. However, it showed fluctuation and at the end, week closed with the stable note.
July’2020 closed at 63.45 with gain of 387 points
Oct 2020 closed at 64.71 with the hike of 114 points
December 2020 closed at 64.31 with the increase of 74 points.
PAKISTAN YARN MARKET:
Local yarn market jumped up after so many long times after lockdown. Prices were gradually increased by mills and most of demand was in 30/1cd and 40/1 combed. Coarse count was in limited demand and some mills still carrying stock.
PSF prices was jumped up by Rs.2/kg as on 29th May 2020 due to limited production of IFL plant. PTA, MEG prices were stable after stable prices of oil in international market and same followed by International polyester fiber. For next week, prices are expected to remains stable.
Faisalabad trading market was staple in term of prices and reasonable demand was in staple counts. Most of mills shifted their production on viscose counts. Demand for 31/pc and 24/1pc was there but prices was marginally jumped but demand for 30/1cd and 32/1cd give boost in prices as well.
Following are current asking prices of yarn in local market based on ex mills:
| Count | Price US$/Bale |
| 16/1 CD | 375 – 390 |
| 20/1 CD | 395 – 410 |
| 30/1 CD | 475 – 490 |
| 20/1 CM | 475 – 485 |
| 30/1 PC 52:48 | 375 – 390 |
| 40/1 CM | 570 – 590 |
| 60/1 CM | 810 – 845 |
| 80/1 CM | 1090 – 1190 |
EXPORT YARN MARKET:
Market remained firm and stable with good business activity. Customers remained in market and kept on checking prices. Good numbers of inquiries were shared this week against which order materialization was also handsome.
Suppliers are also under comfortable zone now as they are not keeping any stocks and running the productions smoothly. It has been observed domestic market customers are very active and buying yarns in full swing. Customers have received reasonable quantities of orders from different market which is very good sign for Pakistan textile sector. Chinese customers remained under average trading activity and placed orders with selected suppliers. Good sign is that LC s are also opening with time to time.
European customers remained active this week and floated handsome numbers of inquiries. Orders are yet to be placed but it is expected that placements will be done in coming week.
| Count | Korea | Hong Kong | Taiwan | Japan |
| 16/1 CD | 395 – 405 | 395 – 405 | 395 – 405 | 395 – 405 |
| 20/1 CD | 405 – 415 | 405 – 415 | 405 – 415 | 405 – 415 |
| 20/1 CM | 475 – 485 | 475 – 485 | 475 – 485 | 475 – 485 |
| 30/1 CD | – | – | – | – |
| 32/1 CD HOS UNWAXED 100% COT. | – | – | – | – |
| 30/1 CM | 500 – 510 | 500 – 510 | 500 – 510 | 500 – 510 |
| 32/1 CM | 510 – 520 | 510 – 520 | 510 – 520 | 510 – 520 |
| 24/2 CD | – | – | – | – |
PAKISTAN FABRIC MARKET:
The local fabric market closed with sluggish movement and limited business reported in the market for both narrow and wider width fabric markets.
Flow of inquiries poured in limited numbers and buyers confirmed orders after hard negotiations at their desired price level. So weavers remained under pressure throughout the week.
Still old stocks are haunting weavers as they have to bear huge financial cost and facing liquidity crunch.
Local brands were active in the market hence they have booked decent quantities in wider width.
Currently weavers are booked in narrow width loom till early~mid August’’2020 whereas wider width looms till 3rd week August’20 and offering onward deliveries Fabric market may tend to follow last week trend for both narrow and wider width looms for coming weeks.
Local fabric prices of regular items are as follows:
| Construction | Price US$/YD ExMill |
| 20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN | 0.91 – 0.92 |
| 16X12/108X56 63″ 3/1 | 1.02 – 1.04 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.76 – 0.78 |
EXPORT FABRIC MARKET:
Mixed business trend was witnessed from Far Eastern markets. Limited inquires were received from Korea, Japan, Bangladesh and Sri Lanka however good business was conducted with Chinese customers. Suppliers are little bit comfortable in sales but they are putting hard efforts to extend their sales up to maximum period of time. Narrow width inquiries and orders got slowed down towards end of the week due to slow demand.
Asking prices were upward and firm due to firmness of raw material prices. It is expected that narrow width business may remain slow in coming days. European customers were active in the market with good quantities in hand. Suppliers booked decent quantities both in narrow and wider width with their customers in Germany, Italy, Spain and Portugal. Wider width major business share was from Portugal market.
Prices for organic quality orders were comparatively better but regular item target prices were less however somehow suppliers have managed to accept the prices to get the orders.
Limited inquiries were received from USA markets even the brands have started their operations Wider width suppliers are booked till end of Aug ~ mid Sep and offering end Sep onward deliveries Suppliers are expecting good business in wider width fabric in coming days.
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 | 0.94 – 0.96 |
| 16X12/108X56 63″ 3/1 | 1.04 – 1.06 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.78 – 0.80 |
BED LINEN & TOWELS:
Bedding and towels market has sustained its prices over the week with good booking of orders which, these orders stretch to deliveries mid Dec 2020. Pakistan has an edge over others in Poly Cotton / Cotton offerings in bedding articles and mass market cotton towels. The deliveries are stretching to ideal 85 to 90 days. And for in-stock greige up to 45 days.
Stocks are available in the market from leftover or cancelled orders due to COVID-19 business losses and revision in demand forecast. Bedding & Towels manufacturers are reasonably booked until the end of this year. Prices are stable and sustained to their current levels. No rise is expected going forward, however a drop might be witnessed depending on the cotton output and overall drop in commodity prices.
GARMENTS:
As we know the coronavirus pandemic has reshaped garment retail industry and repercussion are passed on to its all downstream supply chain. Pakistan’s apparel industry is gradually improving during last couple of weeks. Held orders have been resumed by for foreign buyers. New inquiries have been floated and business materialization have also been recorded. Levi Strauss & Co. reported that sales have been strong since they have reopened the stores after suffering a USD 364 million net loss for the second quarter of the year.
With the world reshaping buying patterns, garment industry is also experiencing the same scenario. A lot of changing are expected in the time to come. Recent sustainability and social impact efforts are proving critical to addressing the market’s newfound demand for transparency and responsibility on the part of brands and their partners. While pushing the industry toward a more environmentally friendly future has been a focus in recent years. Factories in Pakistan are offering eighty to hundred days lead time on average depending upon the order size and types of the garment.
GOING FORWARD:
Local cotton prices were firm. The supply of unginned effected due to rains in Sindh however Punjab crop supply was recorded high. Import prices increased due to currency depreciation. Mills are covering maximum good quality of local cotton due to high USD.
It is expected that domestic yarn market will remain stable and firm according to buyers need.
Local fabric market may tend to follow last week trend for both narrow and wider width looms for coming weeks.
Export yarn market remained under good business activity and customers have placed reasonable quantities order. We might see further improvement in market in days to come.
For export fabric market; is expected that narrow width business may remain slow in coming days however good and decent quantities are expected to place from European customers mainly in wider width fabric.
With the world reshaping buying patterns, garment industry is also experiencing the same scenario. Addressing the market’s newly found demand for transparency and responsibility, sustainability and social impact efforts are found to be critical.
Bedding & Towels manufacturers are reasonably booked until the end of this year. Prices are stable and sustained to their current levels. No rise is expected going forward, however a drop might be witnessed depending on the cotton output and overall drop in commodity prices.
