PAKISTAN COTTON MARKET:
In the local cotton market during the last week, textile mills showed interest in buying while the supply of Phutti continues without any hurdle due to which the rate of cotton remained stable over all. Till now, the supply of Phutti is coming from the lower areas of Sindh while it has been also started in limited amount from some areas of Punjab. In Sindh, a large number of ginning factories are functional while in Punjab some factories are running their operations from the mix Phutti of Punjab and Sindh. The Phutti in Sindh was affected due to the rains in some cotton producing areas a week ago. A new spell of rains in many cotton producing areas of Sindh may affect the quality and picking of the cotton. However, rains are beneficial for the crop at this stage, but if there will be more rains, water accumulated in the fields may damage the crop.
The KCA dropped Rs. 100 and touched the level of Rs 8400 per maund. Mixed trend was witnessed in international cotton market. Fluctuation was seen in the rate of New York Cotton Market. The rate of cotton remained stable in China. The rate of cotton in Brazil and Argentina remained relativity stable but the bearish trend remained continued in India. Indian ginners are in panic. Due to substantial rains in India it is expected that cotton production will be improved.
According to the estimates of agriculture department regarding cotton crop production it is expected that one crore 10 lac bales will be produced in the country. As per estimates, 75 lac bales will be produced in Punjab, 35 lac bales in Sindh while one lac bales will be produced in Khyber Pakhtunkhwa. It is expected that around 11 million bales will be produced. However, according to the claims of private sector 87 lac bales will be produced.
As per reports cotton crop sowing in the country during current season 2020-21 decreased by 1.3 percent compared to last year.
The rate of cotton in Sindh is in between Rs 8400 to Rs 8500 per maund. The rate of Phutti is in between Rs 4200 to Rs 4300 per 40 kg. The rate of cotton in Punjab is in between Rs 8800 to Rs 8900 per maund. Overall prices of new cotton were in the range of USC 60~65 Lbs. (8400~8,900/ maund).
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 55.00 | 54.00 | 1.00 |
| Highest | 65.00 | 64.00 | 1.00 |
CRUDE OIL:
Crude Oil prices opened at USD 40.10 with slight lower level as compared to last week closing figures.
In this week, crude oil price rose in next two sessions, while dropped till closing, hence closed on positive side at the end of week.
In last day of the week, Crude Oil price closed at USD 40.59 with increase of USD 0.49 cents as of opening figure of week
| Lowest | Highest | Change | |
| Price | 40.10 | 40.59 | -0.49 |
EXCHANGE RATE:
In last week values of Pak rupee deprecated 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 1.15 and British Pound also closed on positive note with figure 1.26 against USD.
| Selling | Buying | |
| LC Sight | 167.17 | 167.12 |
| LC 120 Days | 166.41 | 166.36 |
| Open Market | 169.38 | 165.53 |
NEW YORK COTTON FUTURE:
New York Cotton futures opened on higher levels on Monday as compare to previous week’s closing figures.
NYCF showed downward trend in this week, although recovered slightly in one session but closed on negative side by the end of week.
At last day of the week, JULY 2020 closed at 62.01 with decrease of 174 points.
At last day of the week, OCT 2020 closed at 61.94 with downward of 141 point.
At last day of the week, DEC 2020 closed at 62.63 with drop of 141 point.
PAKISTAN YARN MARKET:
Local yarn market remained stable in term of asking prices and reasonable activity was in domestic market during this week ended. Most of suppliers were interested in coarse counts sale but fine count they have more then three weeks sale in hand. On the other hand, weavers were too busy in lifting for their urgent yarn requirements.
PSF prices was remained stable during last week ended. 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 viscose counts. Most of mills shifted their production on viscose counts. Demand for 31/pc and 30/1cd was there but prices was marginally increased in trading market.
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 | 380 – 395 |
| 40/1 CM | 575 – 595 |
| 60/1 CM | 820 – 860 |
| 80/1 CM | 1090 – 1190 |
EXPORT YARN MARKET:
Market remained firm and stable with good business activity. Customers remained in market and kept on floating inquiries.
Good numbers of inquiries were received this week against which order materialization was also reasonable. Suppliers are also under comfortable zone now as they are not keeping any stocks and running the productions smoothly.
There is handsome demand from domestic market as well which is pushing price upward
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 very active this week and floated very good numbers of inquiries. Orders are yet to be placed but it is expected that placements will be done in coming week.
| Count | Korea | HongKong | Taiwan | Japan |
| 16/1 CD | 400 – 410 | 400 – 410 | 400 – 410 | 400 – 410 |
| 20/1 CD | 410 – 420 | 410 – 420 | 410 – 420 | 410 – 420 |
| 20/1 CM | 480 – 490 | 480 – 490 | 480 – 490 | 480 – 490 |
| 30/1 CD | – | – | – | – |
| 32/1 CD HOS UNWAXED 100% COT. | – | – | – | – |
| 30/1 CM | 505 – 515 | 505 – 515 | 505 – 515 | 505 – 515 |
| 32/1 CM | 515 – 525 | 515 – 525 | 515 – 525 | 515 – 525 |
| 24/2 CD | 470 – 480 | 470 – 480 | 470 – 480 | – |
PAKISTAN FABRIC MARKET:
In current week under review the local fabric market once again closed with slow and sluggish trend and limited business reported in the market for both narrow and wider width fabric markets. Limited number of inquiries shared by the buyers and also buyers confirmed orders after hard negotiations at their desired price level. Still weavers are following buyers and agents for any confirmed order.
Local brands were active in the market who have supported weaving units with good quantity order placement in the market.
Currently weavers are booked in narrow width loom till 20th August’’2020 whereas wider width looms till end 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 – 0.93 |
| 16X12/108X56 63″ 3/1 | 1.02 – 1.04 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.77 – 0.79 |
EXPORT FABRIC MARKET:
Export fabric Far Wastern markets remained quite however bulk order inquiry was witnessed in the market towards end of the week. Limited quantity was booked and bulk orders are still under discussions. Overall Far Eastern and Asian markets remained slow with limited business activity from China, Japan and Bangladesh. Asking prices were increased about 2% due to increase of raw material prices.
Currently good suppliers are booked till mid of Aug and struggling to fill their production capacity till end of Aug. Average suppliers are booked till early of Aug and offering mid Aug onward deliveries. Good number of inquiries were received from Italy, Germany and Portugal from limited customers. Most of the customers went on their summer holidays. USA buyers were silent as no major business activity was reported.
Wider width suppliers get good orders from local brands whereas export market remained slow during the week
Suppliers are booked till end of Aug ~ mid of Sep and offering end Sep onward deliveries for wider width.
Following were the closing rates based on CNF Far Eastern markets:
| 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 | 1.05 – 1.07 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.79 – 0.81 |
BED LINEN & TOWELS:
It has been a sold out for the bedding market in the last week as ample of order confirmations has been received due to the increase in demand because of the spill over affect of closure of business in the neighboring countries.
The raw material prices have tripled because of less supply but gradually will drop in the coming days as the supply gets stable. The delivery dates have stretched from 90 to 100 days at minimum of a 20ft container of Duvet sets as an example.
Whereas similar is the case with the towel’s industry, but mostly for the healthcare and retail. But for hospitality the demand is zero at the moment.
GARMENTS:
Pakistan’s apparel industry is gradually getting out of COVID-19 scenario. Major products exported from Pakistan include apparels (HS 61 and 62) and other made-up textile articles (HS 63) such as towels and bed sheets. Western countries import approximately 50pc of global trade in apparels and other made-up textile articles. Most of the factories in Pakistan have resumed their operations and running in full capacities by now after customers have started placing new orders along with resuming held orders.
The fashion industry faces certain degree of risks. Indeed, in times of COVID-19, as consumers around the world remained in lock down, they no longer need new products. This industry is characterized by a highly integrated global supply chain. By now this scenario is also getting clearer as most of the Western countries have opened their trade. Factories in Pakistan are offering eighty to ninety days lead time for the new inquiries depending upon the order size and category of the product.
GOING FORWARD:
Activity improved last week, buyers showed interested and tried to cover stocks. It seems that buyers will keep continue to buy a cotton.
About future market of local yarn, it is expected that domestic yarn market will be remained stable and firm according to buyer as per need.
Fabric market for local market may tend to follow last week trend for both narrow and wider width looms for coming weeks however local brand business will remain active.
Far Eastern fabric markets remained mixed with limited business activity and expected to remain slow in coming days. European customers were active however will remain slow in coming weeks due to their holidays. USA buyers were aside of buying at the moment.
Market remained under handsome business activity for export yarn and customers have placed quite a good numbers of order. We might see further improvement in market in days to come.
Bedding & Towels industry is booked as of last week and prices will remain stable or higher for the coming days until the supply of raw material levels up.
Pakistan’s apparel industry has evolved to a great extent after COVID-19 phase as factories have received new orders along with resuming held orders. At the same time the fashion industry faces certain degree of risks according to prevailing situation.
