PAKISTAN COTTON MARKET:
In the local cotton market, mills took interest in cotton buying as per their need, although, the quality of cotton is not good enough. In fear of increase in prices , buyers booked cotton from local market in handsome quantity. As per information big textile groups are signing import agreements of cotton and up till now agreements for the import of 15 lac bales are signed. It is expected that 45 lac bales of cotton will be imported.
As a result of buying of good quality cotton by textile and spinning mills and due to the increase in the arrival of Phutti the rate of cotton increased by Rs 200 per maund. Cotton prices continue to rise due to reports of significant decline in the crop. The rate of cotton reached at Rs 9200 per maund which is at the highest level of the season. KCA also increased rs.150 and touched the level of rs. 8850/maund. It seems that prices may increase further in coming days due to said reasons.
According to the estimates of Pakistan Cotton Ginners Association in its report till September 15; 8 lac bales (44 %) less will be produced as compared to last year due to which bullish trend was witnessed in the market. The rate of cotton reached at Rs 9200 per maund which is at highest level in the season. The rains caused significant damage to the cotton crop, especially in Sindh province due to which quality and quantity both were affected. Although the quality of cotton was also affected in Punjab and Sindh due to which the increasing trend in the prices of Phutti and cotton continued.
Mixed trend was witnessed in international cotton market. Fluctuation was seen in the Rate of New York Cotton under the influence of fluctuation in the rate of dollar. Moreover, due to USA-China trade conflict and due to weekly USDA export report, which show a significant decrease of 82% compared to the previous week affected the rate of New York Cotton. The rate of cotton remained stable in China, Brazil and Argentina. A little bit increase was witnessed in the rate of cotton in India.
Moreover, Economic Co-ordination Committee of the cabinet approves abolition of regulatory duty and additional customs duty on 164 items related to textile sector. The local textile sector is relatively improving. The demand and price of cotton yarn and textile products are stable, although it is becoming difficult to pay.
The rate of cotton in Sindh is in between Rs 8250 to Rs 8900 per maund. The rate of Phutti in Sindh is in between Rs 3600 to Rs 4100 per 40 kg. The rate of cotton in Punjab is in between Rs 8700 to Rs 9200 per maund. the rate of Phutti in Punjab is in between Rs 3700 to 4500 per 40 kgs. The rate of Phutti in Balochistan is in between Rs 4300 to Rs 5000 per maund. Overall prices of new cotton were in the range of USC 60~67 Lbs. (8200~9200/ maund).
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 60.00 | 60.00 | 0.00 |
| Highest | 66.00 | 67.00 | -1.00 |
CRUDE OIL:
Crude Oil prices opened at USD 39.31 with low level as compared to last week closing figures.
In this week, crude oil prices showed upward trend and closed on positive side at the end of week.
In last day of the week, Crude Oil price closed at USD 40.25 with increase of USD 0.94 cents as of opening figure of week.
| Lowest | Highest | Change | |
| Price | 39.31 | 40.25 | -0.94 |
EXCHANGE RATE:
In last week values of Pak rupee slightly 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 negative note with figure of 1.16 and British Pound closed on negative note with figure 1.28 against USD.
| Selling | Buying | |
| LC Sight | 165.88 | 165.83 |
| LC 120 Days | 165.51 | 165.46 |
| Open Market | 168.01 | 164.19 |
NEW YORK COTTON FUTURE:
New York Cotton futures opened on lower levels on Monday as compare to previous week’s closing figures.
NYCF showed upward trend in this week, only dropped in mid of week, hence closed on positive side by the end of week.
At last day of the week, DEC 2020 closed at 65.95 with increase of 71 point.
At last day of the week, MAR 2021 closed at 66.66 with upward of 42 points.
At last day of the week, MAY 2021 closed at 67.35 with rose of 27 point.
PAKISTAN YARN MARKET:
Local yarn market remained firm during this week ended. Prices in asking were stable and mills sold some order against firm orders. No mill is carrying stock and have getting day to day forward sales as well. All counts were easily selling in local market now a days and weavers also getting yarn against sold fabric orders.
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 active in cotton yarn counts, and trade was made in 40/1, 52/1 and 60/1 counts. Pc and pv yarn were in average demand and there was no change in prices. Staple season going end and limited demand for forward delivery was notice.
About future market it is expected that domestic yarn market will be remained dependent on raw cotton prices for next few weeks and prices will be according to demand and supply in each count of yarn.
Following are current asking prices of yarn in local market based on ex mills:
| Count | Price US$/Bale |
| 16/1 CD | 405 – 420 |
| 20/1 CD | 430 – 445 |
| 30/1 CD | 485 – 500 |
| 20/1 CM | 500 – 510 |
| 30/1 PC 52:48 | 390 – 405 |
| 40/1 CM | 600 – 625 |
| 60/1 CM | 840 – 880 |
| 80/1 CM | 1105 – 1205 |
EXPORT YARN MARKET:
Market remained firm and stable with upward trend in price. Suppliers are sold well due to which they have increased their price continuously.
If we look at the current sales position of all suppliers, we can see that all suppliers are comfortably booked till end October and offering November shipments. This booking has been placed by customer in domestic as well as export markets.
It is expected that prices will remain firm and stable with further tendency to increase further. Moreover, demand from customer is still good and they are placing orders of yarn for forward deliveries as well. Chinese customers have placed bulk quantity orders in recent past due to which coarse counts is bullish. We might see further rise in prices the way orders have been placed and demand is increasing.
European customers also remained active and kept on floating bulk enquiries. However, order confirmations remained slow due to high asking prices.
| Count | Korea | Hong Kong | Taiwan | Japan |
| 16/1 CD | 415 – 425 | 415 – 425 | 415 – 425 | 415 – 425 |
| 20/1 CD | 425 – 435 | 425 – 435 | 425 – 435 | 425 – 435 |
| 20/1 CM | 495 – 505 | 495 – 505 | 495 – 505 | 495 – 505 |
| 30/1 CD | – | – | – | – |
| 32/1 CD HOS UNWAXED 100% COT. | – | – | – | – |
| 30/1 CM | 520 – 530 | 520 – 530 | 520 – 530 | 520 – 530 |
| 32/1 CM | 530 – 540 | 530 – 540 | 530 – 540 | 530 – 540 |
| 24/2 CD | 485 – 495 | 485 – 495 | 485 – 495 | – |
PAKISTAN FABRIC MARKET:
The local fabric market remained volatile but overall firm trend observed throughout the week for both narrow and wider width fabric.
Flow of inquiries improved a bit from unconventional buyers as compared to last week but orders confirmation remained limited and suppliers booked orders at improved inflows for both narrow and wider width fabrics because they have comfortable booking in hand.
In narrow width weavers are booked till end October / early November’20 and booked their wider width looms till 3rd week November ~end November and offering onward deliveries. Further it’s also worth mentioning that major weavers have covered their special looms till end December.
Local fabric prices of regular items are as follows:
| Construction | Price US$/YD Ex Mill |
| 20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN | 1.03 – 1.05 |
| 16X12/108X56 63″ 3/1 | 1.11 – 1.13 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.87 – 0.89 |
EXPORT FABRIC MARKET:
Export fabric far eastern markets are slow since last couple of weeks. Customers have the orders in hand but reluctant to place on existing high price level. Suppliers are trying to convince their customers that prices will not reduce in coming days due to firm sentiment of raw material and short cotton supply this year but customers are still hesitating to place orders.
Limited number of inquiries were exchanged from China, Korea, Japan and Bangladesh markets but no bulk buying was witnessed as just limited booking was reported at existing price levels. Asking prices remained stable and firm like last week without any change. Currently good suppliers are booked till mid of Nov and offering end Nov onward deliveries whereas average suppliers are booked till end of Oct and offering early Nov ~ mid Nov onward deliveries.
European customers have fully resumed their work hence limited business activity was noticed during the week.
Some of the European customers are discussing bulk orders which may be finalized in coming few days for Dec onward deliveries.
USA market is still quite without any considerable business activity Wider width suppliers are comfortably booked till end of Nov and offering end Dec onward deliveries.
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 | 1.04 – 1.06 |
| 16X12/108X56 63″ 3/1 | 1.12 – 1.14 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.88 – 0.90 |
BED LINEN & TOWELS:
Bedding industry is immensely hit with non-availability of looms. The orders bookings are all time high but the leads times are stretching from 90 to 120 days for new orders and for repeat 60 to 75 days.
The prices are being managed despite raw material being on the higher side. The government has made a significant move by announcing to remove regulatory duties on synthetic fibers and other textiles raw material which are used in home textile products. In the coming days this will help to reduce prices and enable the exporters to become more competitive in terms of price offerings.
GARMENTS:
Pakistan’s apparel industry have received very healthy number of inquiries in recent past. Garment units have also finalized orders after a little bit negotiation. Prices are firm as yarn prices are not showing any flexibility due to good demand in domestic market. Overall garment industry is filled with orders and working hard to meet the agreed shipment dates. . It was observed that demand for knitwear – including cotton T-shirts, knitted shirts and sweatshirts have increased as comfort becomes king. In the recent past it was also observed that foreign buyers shifted orders from neighboring countries i.e Bangladesh and India to Pakistan as Corona situation is still not properly under control in these countries. Deliveries for new inquiries of garments are being offered from end December and onward.
GOING FORWARD:
In the local cotton market, improved business was seen, buyers took interest in local cotton buying, despite of lower quality of cotton. Prices were increased and expected more in coming days. Big buyers will focus on import of cotton.
Local yarn market is expected to remain dependent on raw cotton prices for next few weeks and prices will be according to demand and supply in each count of yarn.
Local fabric market remain firm and have tendency to move upward for coming weeks.
Export yarn market remained firm and stable with handsome business activity. It is expected that business activity will remain good in days to come as demand is increasing but suppliers are showing resistance against customer low target prices.
Export fabric business activity will remain mixed for Far Eastern markets however European business activity will improve both in narrow and wider width fabric. Prices are expected to remain strong with upward tendency.
Pakistan’s apparel industry have received a healthy number of orders in recent past and working hard to meet the agreed shipment dates with required quality parameters.
Bedding industry needs additional availability of looms to process running good quantity of orders otherwise, the deadlines will be badly disturbed.
