PAKISTAN COTTON MARKET:
Small business activity was observed by mills and buyers. Buyers were not taking interest as monsoon rains effected the Phutti quality. Prices of cotton was remained on same level and didn’t show any major changes. The KCA spot rate was same at the levels of Rs 8300 per maund. According to the monthly report of WASDE there will be increase in the production of cotton while demand of cotton will be decreased. The report sees decrease in the rate of cotton as a result of increase in the stock of cotton. Moreover, USDA weekly report the exports decreased by twenty percent. over all fluctuation was witnessed in the rate of cotton worldwide.
Moreover, the monthly report of WASDE regarding world production and demand came positive against the expectations. As per report the world production of cotton increased by 1.10 percent while the demand witnessed an unprecedented decrease by 1.08 percent while low trading volume of cotton witnessed world wide. Decrease was witnessed in the opening stock.
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 3800 per 40 kg. The rate of cotton in Punjab is in between Rs 8150 to Rs 8650 per maund. the rate of Phutti in Punjab is in between Rs 3600 to 4000 per 40 kgs. Overall prices of new cotton were in the range of USC 59~63 Lbs. (8150~8,650/ maund).
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 56.00 | 56.00 | 0.00 |
| Highest | 62.00 | 62.00 | 0.00 |
CRUDE OIL:
Crude Oil prices opened at USD 41.94 with 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 42.01 with increase of USD 0.07 cents as of opening figure of week
| Lowest | Highest | Change | |
| Price | 41.94 | 42.01 | -0.07 |
EXCHANGE RATE:
In last week values of Pak rupee appreciated slightly 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 | 168.07 | 168.02 |
| LC 120 Days | 167.59 | 167.54 |
| Open Market | 170.29 | 166.32 |
NEW YORK COTTON FUTURE:
New York Cotton futures opened on higher levels on Monday as compare to previous week’s closing figures.
NYCF showed mix trend in this week and closed also with mix sentiment by the end of week.
At last day of the week, OCT 2020 closed at 62.29 with drop of 05 point.
At last day of the week, DEC 2020 closed at 62.85 with rose of 05 point.
At last day of the week, MAR 2021 closed at 63.76 with increase of 16 points.
PAKISTAN YARN MARKET:
Local yarn market remained firm in asking prices with limited sale activity in these prices. Mills were interested in further sales and they got opportunity to sale further on their desired price to manage customers given delivery. Activity in all yarn counts in domestic market is good and no count, no mill has stocks/sale pressures now a days.
PSF prices remained stable. During the last week, PTA, MEG prices were soft after stable prices of oil in international market and same followed by International polyester fiber. For next week, prices are expected to drop little in local market. Faisalabad trading market was slow and limited activity was reported for last week ended. slow demand was observed in staple fiber as well as in 30/1cd ,31/1pc yarn after Eid Holidays.
About future market it is expected that domestic yarn market will remain same for next week and prices will be according to demand and supply in each count.
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 | 405 – 420 |
| 30/1 CD | 475 – 490 |
| 20/1 CM | 470 – 485 |
| 30/1 PC 52:48 | 385 – 395 |
| 40/1 CM | 575 – 595 |
| 60/1 CM | 820 – 880 |
| 80/1 CM | 1080 – 1180 |
EXPORT YARN MARKET:
Market remained firm and stable with good business activity throughout the week. Customers have been floating good numbers of enquiries against which order materialization has been witnessed as well. We might see handsome demand from customers side in days to come.
Overall prices are firm and stable with upward trend as all suppliers are comfortably booked due to good orders placements by buyers in last couple of weeks. So, we might see firm and stable sentiment with good business activity in days to come. There is reasonable demand from domestic market as well which is sign to keep prices firm and stable. Chinese customers remained under bullish sentiment and placed orders with selected suppliers.
European customers are partially on holidays but despite of that, there has been good activity in the market.
| Count | Korea | Hong Kong | Taiwan | Japan |
| 16/1 CD | 410 – 420 | 410 – 420 | 410 – 420 | 410 – 420 |
| 20/1 CD | 420 – 430 | 420 – 430 | 420 – 430 | 420 – 430 |
| 20/1 CM | 490 – 500 | 490 – 500 | 490 – 500 | 490 – 500 |
| 30/1 CD | – | – | – | – |
| 32/1 CD HOS UNWAXED 100% COT. | – | – | – | – |
| 30/1 CM | 515 – 525 | 515 – 525 | 515 – 525 | 515 – 525 |
| 32/1 CM | 525 – 535 | 525 – 535 | 525 – 535 | 525 – 535 |
| 24/2 CD | 480 – 490 | 480 – 490 | 480 – 490 | 480 – 490 |
PAKISTAN FABRIC MARKET:
In current week under review the local fabric market remained range bound however upside faces resistance from buyers for both narrow and wider width fabric. Buyers floated limited inquiries throughout the week and resultantly limited order confirmation reported in the market. Still corona-virus outbreak gripping market sentiments all over the world and Buyers are very reluctant to place new orders. Weavers are pushing their buyers to lift their produced stocks.
In narrow width weavers are booked till end of Sep whereas wider width looms till 3rd week of Oct~ end Oct and offering onward deliveries
Moving forward we expect the market to remain volatile with intraday corrections 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 ExMill |
| 20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN | 0.99 – 1.01 |
| 16X12/108X56 63″ 3/1 | 1.07 – 1.09 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.82 – 0.84 |
EXPORT FABRIC MARKET:
Export fabric Far Eastern markets was active during first half of the week as customers were discussing decent quantity of orders however no bulk buying was witnessed due to lower target prices from the customers. The activity was halt by end of the week due to slow demand worldwide. Limited inquiries were received from Korea, China, Japan and Bangladesh whereas other markets were almost quite. Asking prices were stable with firm tone due to firmness in yarn prices.
Currently good suppliers are booked till end of Sep and offering early ~ mid Oct onward deliveries. Average suppliers are offering some partial quantities from end Sep onward. 1/1 plain quality bulk orders were placed with the suppliers during last couple of weeks hence 1/1 plain deliveries are offering by end Oct onward from all suppliers.
Following were the closing rates based on CNF Far Eastern ports.
Since most of the customers from Europe are on holidays hence limited number of inquiries were discussed mainly from Germany and Portugal resultant limited buying mainly in wider width items. Narrow width orders are very limited because end customers have no fashion articles demand in hand thus the narrow width suppliers are struggling hard to get orders.
Wider width suppliers have good booking till end of Oct and offering Nov onward deliveries. No considerable buying was witnessed from USA buyers due to slow demand both in narrow and wider width. It is expected that narrow width business may remain slow by next couple of days however wider width business will pick up from end of this month when the European customers are back from their holidays.
| 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 and Towel manufacturers are awaiting for correction in yarn prices, in order to hedge towards upcoming orders of winter season in the western markets and spring summer in the eastern markets. The deliveries are expected to come through within 90 days. Bedding and Towels industry is performing really well and demand is all strong despite of Corona Factor.
GARMENTS:
Despite the disruption in the global corona-virus crisis, the future looks bright for the Pakistan’s garment factories with European brands are seen seeking vertically integrated units with sustainability options. Amidst rebuilding post pandemic supply chains by the brands and retailers, it is time to reconsider how they can ensure sustainability, development and distribution in their decisions. The latest World Trade Statistical Review 2020 released by WTO highlights an insights into fashion companies how their production and sourcing strategies are changing. Garment factories in Pakistan have comfortable positions as for orders in hand and now have space to offer deliveries from end November onwards.
GOING FORWARD:
Slow business activity was seen in domestic cotton market. Rains have affected the quality of cotton as well as trading. It seems that most of the buyers will focus on import of cotton due to the low quality of local cotton.
Good business activity was observed in local yarn market and expected to remain same for next week as well. Prices will be according to demand and supply in each count.
Moving forward we expect that the Local fabric market to remain volatile with intraday corrections with limited trading activity for both narrow and wider width looms for coming weeks.
Market showed good demand for yarn in export markets. Customers are placing good quantity of orders. There is good business activity expected in days to come as well.
It is expected that narrow width business may remain slow by next couple of days however wider width business will pick up from end of this month when the European customers are back from their holidays.
Despite the disruption in the global corona virus crisis the future looks bright for the Pakistan’s garment factories with European brands are seen seeking vertically integrated units with sustainability options.
Bedding and Towels industry is performing really well and demand is all strong despite of Corona Factor.
