PAKISTAN COTTON MARKET:
In the local cotton market, during the last week, moderate business was seen by mills, quality of Phutti as well as supply of the Phutti was affected due to the monsoon rains. Another reason of significant decline in the local cotton market is because downward trend was witnessed in the international market also. The prices of cotton in local market remained on same levels without any major changes The KCA dropped Rs. 50 and touched the level of Rs 8100 per maund. The price of New York cotton recovered in this week from 60 to 63 cents, due to the dollar fell to a fresh two year low and on concerns of crop damage due to Hurricane Hanna, which hit in the United States biggest growing region, Texas over the weekend.
The arrival of new cotton has started in Brazil and the rate of cotton is low there 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 stock. 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 Baluchistan 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 lakh bales will be produced in the country. According to the report of USD 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 8350 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 58~61 Lbs. (8000~8,350/ maund).
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 55.00 | 57.00 | -2.00 |
| Highest | 62.00 | 61.00 | 1.00 |
CRUDE OIL:
Crude Oil prices opened at USD 41.60 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 negative side at the end of week.
In last day of the week, Crude Oil price closed at USD 40.27 with decrease of USD 1.33 cents as of opening figure of week.
| Lowest | Highest | Change | |
| Price | 41.60 | 40.27 | 1.33 |
EXCHANGE RATE:
In last week values of Pak rupee appreciated 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 1.18 and British Pound also closed on positive note with figure 1.31 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 dropped in next session, later marched upward and closed on positive side by the end of week.
At last day of the week, OCT 2020 closed at 62.30 with upward of 161 point.
At last day of the week, DEC 2020 closed at 62.66 with rose of 150 point.
At last day of the week, MAR 2021 closed at 63.25 with increase of 140 points
PAKISTAN YARN MARKET:
Local yarn market remained firm in term of asking prices and reasonable activity was made in last week ended. Most of customer were busy in lifting of their ready goods and was also keep eye on future order booking to cover yarn accordingly. There was no mill carrying stock and all count including coarse was selling start from last two weeks.
PSF prices were 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 stable and average activity reported for last week ended. 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 | 830 – 890 |
| 80/1 CM | 1095 – 1195 |
EXPORT YARN MARKET:
Market remained under firm and stable note with good business activity throughout the week. Customers floated handsome numbers of enquiries against which order confirmation was also good. Suppliers were discussing each and every enquiry seriously and confirmed order as per their sales position. Over all there has been improvement in business activity from Europe and China which is good sign for suppliers. All suppliers are under comfortable zone as they are getting positive feedback from their customers.
So, we might see firm and stable sentiment with good business activity in days to come. There is handsome demand from domestic market as well which is sign to keep prices firm and stable. Chinese customers remained under reasonable trading activity and placed orders with selected suppliers.
European customers remained very active this week and floated very good numbers of enquiries. Orders are also confirmed and some are under discussion which are expected to be confirmed in next 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:
In current week under review slow activity was reported and resultant limited business observed in the market for both narrow and wider width fabric markets with dyeing units. Local brands for lawn remained slow due to upcoming Eid festival holidays. Buyers floated limited numbers of inquiries and also confirmed limited orders after tough negotiations at slightly improved inflows owing to increase in yarn prices. Still weavers are pushing their counterparts for confirmed inquiries / orders.
Weavers are still carrying old stocks of their buyers which is causing big financial burden for already facing liquidity crunch weavers.
In narrow width loom weavers are booked till early September’20 whereas wider width looms till Mid~3rd week September’20 and offering onward deliveries.
Moving forward we expect the market to remain slow with limited trading activity for both narrow and wider width looms for coming weeks.
Local fabric prices of regular items are as follows.
| Construction | Price US$/YD Ex Mill |
| 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:
Due to upcoming Eid festival holidays towards end of last week, suppliers were on holiday mood after mid of week. Improved business activity was seen during the week especially from Korea, Japan and Chinese customers. Korean customers were looking for urgent deliveries which were managed and offered by the suppliers so hopefully customers will place orders during next 1~2 days. Chinese and Japanese customers have exchanged good number of inquiries for which orders are under discussion to place.
Asking prices were stable and firm due to firmness in yarn prices. Although the cotton prices were soft but yarn prices are still firm by the suppliers due to good sales coverage. Covid-19 situation in Pakistan is getting better hence Government has lifted the lock down in most parts of the country which is good sign. Hopefully the business activity will further improve in days to come.Currently good suppliers are booked till mid of Sep and offering end Sep onward deliveries whereas average suppliers are offering mid Sep deliveries. Limited inquiries were received from European and USA buyers due to less demand and summer holidays.
Some of the European customers were looking for ready goods in T-180 ~ T250 for which orders are pending to place.
Wider width suppliers have good sales coverage as most of them have sold their production till October. Prices for wider width remains stable and firm due to stable raw material prices.
Following were the closing rates based on CNF Far Eastern ports, LC at sight:
| 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’s industry has been performing really well in terms of order occupancy rate and the deliverance rate. The raw material prices have been similar to that of the previous week, whereas the deliveries are stretching to 95 to 120 days.
The prices have 5% dropped in comparison to the previous year adjusted to 5% increase in commodity rates but balanced out by the currency advantage.
GARMENTS:
The global apparel supply chain is in need of a complete reset if it is to survive Covid-19 after math. This means changing to the demand driven patterns embracing “smartification” and distributing margins differently. The UK government has been called upon to roll out support measures for the fashion industry as this sector could hit twice compared with others. Besides, things are getting back to normalize and customers have started sharing new inquiries and placing orders.
Factories in Pakistan are in comfortable phase overall in terms of orders in hand as they have booking till end oct and partially November deliveries. For the new inquiries they are offering November onward deliveries as per garment type and order size. In addition to basic and some fashion articles, personal protective equipment (PPE) clothes from foreign customers have also given a support to fill their production capacities.
The global apparel and textile supply chain is in need of a complete reset if it is to survive Covid-19 aftermath. Garment factories in Pakistan are offering November onward deliveries.
GOING FORWARD:
Moderate business activity was seen last week for local yarn, due to the damage of phutti due to rains. It seems that activity will remain on slow pace, only needy buyers will take interest for their immediate requirement only. Prices are also not being expected to increase. Local yarn is expected to remain stable and firm. Business activity was good during the week with firm price note.
Local fabric market will remain slow with limited trading activity for both narrow and wider width looms for coming weeks.
Market remained under stable prices with good business activity for export yarn. Business activity will pick up further in days to come.
For export fabric, good trading activity was seen from Far Eastern sectors however suppliers are expecting to get orders during next couple of days. Limited buying was observed from European and USA buyers due to slow demand and summer holidays. Prices were stable and firm due to firmness in yarn prices.
The global apparel and textile supply chain is in need of a complete reset if it is to survive Covid-19 aftermath. Garment factories in Pakistan are offering November onward deliveries.
Bedding & Towels industry has been busy last week exiting orders before Eid closures, things will normalize going forward in terms of delivery outputs.
