PAKISTAN COTTON MARKET:
In the local cotton market during the last week buying by mills continued as well as the arrival of Phutti was also continue due to which the trading volume increased little bit. During the last days of the week; the quality of new cotton was affected as the Phutti was affected by rain. Although the ginners took interest in buying according to their needs. According to the reports the sowing of cotton has completed in the country. The sowing of cotton in Punjab is 2.5 percent less while in Sindh sowing was 2.7 percent more. The prices of cotton in local market witnessed a significant decline of Rs 200 to Rs 250 per maund as downward trend in the prices of cotton was seen in international markets. The KCA dropped Rs. 50 and touched the level of Rs 8300 per maund.
The price of New York cotton fell from 63 American cents to 60 cents. There are two reasons of decreasing the rates of New York Cotton firstly according to the weekly report of USDA the export of cotton decreased by 13 percent although according to the report China was the biggest importer. Secondly as a result of the increasing tension between China and America if China suspend its imports of cotton from America or decrease the imports it will have a negative impact on the Rate of New York Cotton because America and China are reducing their diplomatic ties.
The arrival of new cotton has started in Brazil and the rate of cotton is low, while Argentina is also selling cotton on low rate. The bearish trend continues in rate of cotton in India. The Cotton Corporation of India has started selling cotton to textile mills from their stock due to which ginners were facing difficulties in selling their stocks. According to the reports monsoon rains in India will be twenty five percent more due to which there will increase in the production of cotton. Due to high cotton production, cotton prices in India will continue to be under pressure next season.
According to the estimates of agriculture, 75 lac bales will be produced in Punjab. According to experts of Sindh 35 lac bales will be produced in Sindh while one lac bales will be produced in Balochistan and Khyber Pakhtunkhwa. According to the unofficial estimates eleven million bales will be produced in the country. However, according to estimates of private experts Eighty seven Lac bales will be produced in the country. According to the report of USDA sixty five lac bales will be produced of 480 pounds which is 90 lac bales of 150 kg in Pakistan. However, it is premature to estimate cotton production at this time because the cotton plant is fragile and weather conditions affect it more.
The rate of cotton in Sindh is in between Rs 8150 to Rs 8300 per maund. The rate of Phutti in Sindh is in between Rs 3200 to Rs 3600 per 40 kg. The rate of cotton in Punjab is in between Rs 8000 to Rs 8500 per maund.the rate of Phutti in Punjab is in between Rs 3200 to 3800 per 40 kgs. Overall prices of new cotton were in the range of USC 58~62 Lbs. (8000~8,500/ maund).
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 54.00 | 54.00 | 0.00 |
| Highest | 63.00 | 63.00 | 0.00 |
CRUDE OIL:
Crude Oil prices opened at USD 40.81 with slightly higher level as compared to last week closing figures.
In this week, crude oil price showed mix trend with minor fluctuation, hence closed on positive side at the end of week.
In last day of the week, Crude Oil price closed at USD 41.29 with increase of USD 0.48 cents as of opening figure of week.
| Lowest | Highest | Change | |
| Price | 40.81 | 41.29 | -0.48 |
EXCHANGE RATE:
In last week values of Pak rupee appreciated against US Dollar’s, other major currencies showed mix trend in both Inter bank and open markets.
At the end of week, Euro closed on a positive note with figure of 1.17 and British Pound also closed on positive note with figure 1.28 against USD.
| Selling | Buying | |
| LC Sight | 167.76 | 167.71 |
| LC 120 Days | 167.12 | 167.07 |
| Open Market | 169.93 | 166.07 |
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 and closed on negative side by the end of week.
At last day of the week, JULY 2020 closed at 59.96 with decrease of 303 points.
At last day of the week, OCT 2020 closed at 60.10 with downward of 278 point.
At last day of the week, DEC 2020 closed at 60.82 with drop of 279 point.
PAKISTAN YARN MARKET:
Local yarn market remained firm and good sale was made before EID festival holidays. Most of mills were interested to sell the yarn for the factor of closing NYCF which give them thought to sell max yarn on the existing prices. On the other hand, weavers were booking yarn based on import as well as from domestic market as per their sale position to keep running looms in continuity.
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 also active by start of this week with stable prices. Demand for 31/1pc and 30/1cd was regular in market, and fine counts 52/1, 60/1 was also active and good trade was made in this week.
About future market it is expected that domestic yarn market will be remained stable and firm according to buyer as per need.
Following are current asking prices of yarn in local market based on ex mills:
| Count | Price US$/Bale |
| 16/1 CD | 380 – 395 |
| 20/1 CD | 405 – 420 |
| 30/1 CD | 485 – 500 |
| 20/1 CM | 480 – 495 |
| 30/1 PC 52:48 | 390 – 405 |
| 40/1 CM | 580 – 600 |
| 60/1 CM | 820 – 860 |
| 80/1 CM | 1090 – 1195 |
EXPORT YARN MARKET:
Market remained under slight fluctuation after USA and China started the new phase of conflicts. Cotton prices showed decline mid-week onwards which put slight pressure on yarn prices. However, despite of that, customer kept on placing orders for the required quantities and good numbers of deals were materialized. Customers floated very good numbers of enquiries against which order placements were also witnessed.
We might see good business activity in days to come as business situation is getting better.
Suppliers are under comfortable sales situation as most of the suppliers have sold August and offering September shipments.
Hence, there is not much pressure on suppliers and it is expected that price will remain firm and stable with minor fluctuation on both side.
There is handsome demand from domestic market as well which is sign to keep prices firm and stable.
Chinese customers remained under good trading activity and placed orders with selected suppliers. Good sign is that L/C’s are also opening with time to time. European customers remained very active this week and floated very good numbers of enquiries. 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 | 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:
The local fabric market once again showed slow and sluggish trend throughout the week and resultantly negligible business was reported in the market for both narrow and wider width fabric with dyeing units. Decent quantities were booked by local brands which supported the weaving unit a much. These quantities were booked both for men’s and women’s wear.
Flow of inquiries slowed down considerably and local dyeing units confirmed orders after hard negotiations at lower price parity due to price pressure. Still weavers are chasing buyers and agents for confirmed bids. Currently weavers are booked in narrow width loom till end August’’2020 whereas wider width looms are covered till early ~ mid-September’20 and offering onward deliveries
Local fabric market may 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 | 0.98 – 1.00 |
| 16X12/108X56 63″ 3/1 | 1.06 – 1.08 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.82 – 0.84 |
EXPORT FABRIC MARKET:
Improved trading activity was observed from Far Eastern and Asian customers during the week. Korean customers have booked decent quantities mainly in sheeting fabric with air jet suppliers. Average business was also witnessed from China, Japan and Indonesia. No considerable business was reported from Bangladesh and Thailand. Suppliers have increased their prices about 3~4% due to increase in raw material prices however suppliers were eager to work out reasonable target prices. Good suppliers are booked till end of Aug and offering early ~ mid Sep onward deliveries. Average suppliers are still offering end Aug deliveries. 1/1 plain item booking is good hence most of the suppliers are offering end Sep onward deliveries for 1/1 qualities.
Some of the suppliers are expecting some price correction in coming days especially for the fabric items made with 30/1 yarn counts Average business activity was seen from European customers as most of the customers are on their summer vacations. Suppliers have received limited orders both in narrow and wider width from Germany, Portugal, Italy and Spain.
Price for wider width remained almost stable due to stable yarn prices in fine counts which are 40/1 and above yarn counts, USA market was slow during the week as no considerable buying was witnessed. Wider width suppliers are booked till mid of Oct and offering end Oct onward deliveries.
It is foretasted that average business activity will remain both in Far Eastern and European sectors.
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 | 1.00 – 1.02 |
| 16X12/108X56 63″ 3/1 | 1.08 – 1.10 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.84 – 0.86 |
BED LINEN & TOWELS:
Bedding & Towel manufacturers have remained at healthy in terms of order placements rolled down from previous months, but are slightly affected with the higher end prices for future orders, which the industry is settling to, going forward. The latest delivery dates for new orders is at 95 to 100 days, and fabric in-stock they stand at 55 to 60 days depending on confirmation of all accessories and packaging artworks and samples from the customer end.
The manufacturers are willing to add on to digital printing due to changing trends of meeting eCommerce based demand of clients. But the investment is still at par in meeting the printing cost to the quantities getting received. Generally the Bedding & Towels industry is doing pretty well, with printing of finished fabric in delay. But the future weeks will define the future of the orders.
GARMENTS:
Aftermaths of Covid-19 scenario observe a shift of sourcing from China to other Asian countries including Pakistan. The supply chain land scape is expected to remain turbulent until the pandemic is fully contained. While sourcing diversification remains a trend amongst the buyers from EU and USA. A survey showed that almost 95% US buyers have plans to change their sourcing for apparel while on the other hand EU buyers showed almost no immediate plan to change their sourcing in near future.
The production of personal protective equipment (PPE) has supported to apparel industry of Pakistan during the Covid-19 scenario to an extent. At the moment factories in Pakistan have orders in hand to fill their production lines and offering November onward deliveries according to types and size of the orders. Further more buyers from EU and USA are also doing initial trials and developments for Autumn Winter 21 season with factories.
GOING FORWARD:
Improved activity was seen last week for local yarn, buyers showed interested and tried to cover stocks. Needy buyers were trying to cover their immediate requirements. in next week buying will be slow due to upcoming holidays in accordance of EID UL ADHA. Local yarn market is expected to remain stable and firm according to buyer’s need.
Export yarn market showed slight fluctuation in price but with good business activity. Hence, we might see another phase of buying form different markets in days to come.
Local fabric market may follow last week trend for both narrow and wider width looms for coming weeks.
Export fabric market was mixed during the week as some of the areas were active and some of them were slow. It is forecasted that average business activity will remain for both in Far Eastern and European sectors for coming days.
For the garment sector, Aftermaths of Covid-19 scenario observe a shift of sourcing from China to other Asian countries including Pakistan. Buyers from EU and USA are doing initial trials and developments for Autumn Winter 21 season with factories in Pakistan showing a healthy sign for upcoming seasons.
The Bedding & Towels industry is doing pretty well, with printing of finished fabric in delay. But the future weeks will define the future of the orders.
