PAKISTAN COTTON MARKET:
In the local cotton market during the last week the trading volume increased due to the increase in buying by the textile and spinning sector and due to increase in supply of Phutti. The rate of cotton increased by Rs. 200 per maund. The rate of good quality cotton has reached Rs 9300 which is highest in the season. The rate of cotton of Balochistan also reached at Rs 9500 to Rs 9700 which is at highest level. KCA also increased rs.100 and touched the level of Rs. 9000/maund.
Cotton productions drop alarmingly by 10 lac bales. Annual production of cotton is estimated to be 86 lac bales. Up till now agreements for import of 17 lac bales have been signed. Around 45 lac bales will be imported. Some ginners had not started ginning because the rates of Phutti are not competitive. This year less number of ginning factories has started ginning as compared to last years season.
PCGA has issued the statistics of cotton production till October 1, according to which 19 lac and seven thousand bales were produced in the country which was 10 lac twenty six thousand bales (34.98) less as compared to last year production of 29 lac and thirty three bales. There is 4% decline in cotton area, resultantly pest complex has changed. In case of cotton, loss is observed in Multan division. Comparatively Bahawalpur and DG Khan is doing better. Punjab assessed production target between 5.30mn bales. Sindh also mentioned that due to heavy rains cotton crop is facing lots of issues. Mirpur Khas and Sanghar have faced crop damage. Sindh gave target of 3mn bales. KPK gave target of 0.065mn bales and Baluchistan gave target of 0.291mn bales. The total estimated production of the country will be 8.597mn bales.
Mixed trend was seen in international cotton market. The rate of New York Cotton was reminded under the influence of fluctuation in the rate of dollar. The fluctuation was observed in the Rate of NYCF. The reason behind fluctuation is America and China trade conflict.
In the weekly USDA export report there is a slight decrease was witnessed in the export as compared to last week. The rate of cotton remained stable in India. The Cotton Corporation of India has started devising a strategy for the buying of new cotton crop from October 1. CCI is selling cotton to Bangladesh and local mills which was purchased by Corporation last year. India’s cotton-growing areas, especially Gujarat, are expected to have ample cotton sowing this year. The rate of cotton in Sindh is in between Rs 8200 to Rs 9100 per maund. The rate of Phutti in Sindh is in between Rs 3800 to Rs 4300 per 40 kg. The rate of cotton in Punjab is in between Rs 8800 to Rs 9300 per maund. the rate of Phutti in Punjab is in between Rs 3800 to 4600 per 40 kgs. The rate of Phutti in Balochistan is in between Rs 4400 to Rs 5200 per maund. Overall prices of new cotton were in the range of USC 60~68 Lbs. (8200~9300/ maund).
|Opening Of the Week||Closing Of the Week||Change|
Crude Oil prices opened at USD 40.60 with high level as compared to last week closing figures.
In this week, crude oil prices showed downward trend, except of one session and closed on negative side at the end of week.
In last day of the week, Crude Oil price closed at USD 37.05 with decrease of USD 3.55 cents as of opening figure of week.
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 positive note with figure of 1.17 and British Pound closed on positive note with figure 1.29 against USD.
|LC 120 Days||164.63||164.58|
NEW YORK COTTON FUTURE:
New York Cotton futures opened on lower levels on Monday as compare to previous week’s closing figures.
NYCF showed mix trend in this week, hence closed on slight positive side by the end of week.
At last day of the week, DEC 2020 closed at 65.82 with increase of 13 point.
At last day of the week, MAR 2021 closed at 66.63 with upward of 25 points.
At last day of the week, MAY 2021 closed at 67.27 with rose of 18 point.
PAKISTAN YARN MARKET:
Local yarn market remained firm during another week in a row. Prices in asking were firm and mills sold some order quantity with increased rates in this week again. 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 after good export demand in coarse counts.
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 good trade was made in 40/1, 52/1 and 60/1 counts. Staple season going end and now pc/pv demand again picked up little and prices were remains stable with average business activity.
Following are current asking prices of yarn in local market based on ex mills:
|16/1 CD||415 – 430|
|20/1 CD||440 – 460|
|30/1 CD||495 – 510|
|20/1 CM||505 – 520|
|30/1 PC 52:48||395 – 405|
|40/1 CM||620 – 635|
|60/1 CM||870 – 895|
|80/1 CM||1125 – 1225|
EXPORT YARN MARKET:
Market remained under good business activity as customers from all regions remained busy in buying. Major chunk of buying was witnessed from Chinese market as customers have booked handsome quantities despite of increase in prices. Suppliers have sold good quantities in coarse counts which is the reason of firm sentiment in market.
Moreover, after the news of short crop in Pakistan, cotton prices took a jump and prices are now increased by supplier for almost 3-5%.
Chinese customers remained in market and kept on placing orders at every price level. European customers also showed improved activity in terms of enquiry but order placements is slight slow as they are still hesitating against high asking prices.
It seems that in coming day, prices may show further incline of 3-5% as now suppliers are hesitating to confirm orders at prevailing rates and increased their prices due to good demand. It is expected that prices will show firmness for the whole season as there has been shortage in cotton in PAKISTAN as well as worldwide. So, market will remain under same price tone with minor fluctuations.
|16/1 CD||425 – 435||425 – 435||425 – 435||425 – 435|
|20/1 CD||435 – 445||435 – 445||435 – 445||435 – 445|
|20/1 CM||505 – 515||505 – 515||505 – 515||505 – 515|
|32/1 CD HOS UNWAXED 100% COT.||–||–||–||–|
|30/1 CM||530 – 540||530 – 540||530 – 540||530 – 540|
|32/1 CM||540 – 550||540 – 550||540 – 550||540 – 550|
|24/2 CD||495 – 505||495 – 505||495 – 505||–|
PAKISTAN FABRIC MARKET:
In current week under review the local fabric market showed firm and upward trend throughout the week for both narrow and wider width fabrics.
Buyers enhanced their flow of inquiries as compared to last few weeks however buyers resisted the increase in the asking prices from weavers. Some of the orders confirmed after tough negotiation but at slightly increased price level from last week for both narrow and wider width fabrics.
Almost 1~2% price increment reported in local fabric market for both narrow and wider width fabrics Weavers are comfortably booked in narrow width till 3rd week November end November’20 but in wider width weavers are comfortably booked till end December and offering onward deliveries.
Local fabric prices of regular items are as follows:
|Construction||Price US$/YD Ex Mill|
|20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN||1.04 – 1.06|
|16X12/108X56 63″ 3/1||1.12 – 1.14|
|20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN||0.88 – 0.90|
EXPORT FABRIC MARKET:
Export fabric business is not picking up due to slow demand from various origins of the globe especially for narrow width fabric. Since there was holidays in many far Eastern countries hence no considerable business was reported. Suppliers have further increased their prices due to further increase in yarn prices. They are offering prices with no price validity due to uncertain market situation.
Currently good suppliers are booked till end of mid of Nov and offering end Nov onward deliveries whereas average suppliers are booked till end of Oct and offering early ~ mid Nov onward deliveries however 1/1 plain fabric deliveries are available from end Dec onward. European customers were active during the week and exchanged good number of inquiries mainly for wider width fabric. Home textile units are fully engaged which leads to less availability of required deliveries by the customers.|
Suppliers have sold out Dec production and now offering Jan and Feb onward deliveries for wider width fabric due to good sales coverage.
Due to good demand in wider width fabric, suppliers are offering strong prices.
Following were the closing rates based on CNF Far Eastern ports:
|Construction||Price US$/YD CNF Far East|
|20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN||1.06 – 1.08|
|16X12/108X56 63″ 3/1||1.14 – 1.16|
|20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN||0.90 – 0.92|
BED LINEN & TOWELS:
Due to the surge in the number of orders placed within Pakistan and the continuity of the inquiries from mainly from the European and the North American Market the prices are riding high of raw materials as the supply-side is not able to fulfill the massive demand of the factories. This in turn is effecting the overall lead times which are stretching from 90 to 120 days at minimum and for repeat they are stretching from 60 to 70 days.
After a healthy response from foreign customers, Pakistan apparel industry has met its production capacities and striving to hit the agreed shipment dates. Some of the garment units have found to be over booked as they did not want to refuse their buyers. Now this situation might end up airing the goods as those factories would find it difficult to manage the agreed sea shipment dates. For the new inquiries suppliers are offering January onward deliveries.
On the global front, the recent pandemic has changed the shopping patterns. In the age of at-home retail, digital is more effective. With high demand of athleisure wear during lock down brands like Nike took a direct-to-consumer approach using their web sites and apps without visiting retail outlets. Brands who have understood digital have been able to increase their customer base during pandemic. This shift to on line sales could be a permanent feature as Nike reported 82% increase in digital sales during first quarter of the fiscal year. On the sustainability end, Amazon has launched a “Climate Pledge Friendly” program to help customers explore more environmental friendly products. With all these changes Pakistani garment units are equipped to meet the customers’ requirements.
In the local cotton market, improved business was seen, buyers took interest in local cotton buying, quality of local cotton is also improving. Prices touched highest level, it seems that prices will remain on same levels, otherwise buyers may shift for import of cotton.
Domestic yarn market is expected to remain firm with tendency to move upward due to increase of cotton price.
Local fabric market activity was improved during the week. suppliers increased their prices by 1~2% due to hike in raw material prices however limited orders were booked. It is expected that fabric prices will remain firm in coming days.
Export fabric business remain slow due to holidays in far eastern countries however wider width business is good hence deliveries are from Jan onward. Business for far eastern and Europe is expected to improve in coming days.
Market showed very good business activity as customers have booked handsome quantity orders in export yarn. it is expected that business activity will remain good in days to come as demand is increasing but suppliers are showing resistance against customer target prices.
Improved business activity was seen in local fabric sales. Suppliers have increased 1~2% prices due to hike in yarn prices and customers also booked some orders with increased prices. It is expected that business activity will remain good in coming days.
Garment factories in Pakistan have good number of orders in hand rather some factories have over booking. Deliveries for new inquiries are being offered now from January onward.
For bedding and Towels market the new cotton can benefit in bringing down the prices otherwise the parity between supply and demand will keep the prices up as order bookings are all time high.