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. 700 to 800 per maund. The rate of good quality cotton has reached Rs 9800 which is highest in ten years. KCA also increased rs.450 and touched the level of rs. 9500/maund. Balochi cotton was sold at Rs 11000 per maund
Up till now agreements for the import of twenty lac bales of cotton from abroad were signed. It is expected that sixty lac bales will be imported. Active cotton seeds will not be imported from abroad. The support price of cotton will not be fixed. The panic like situation was seen among ginners, textile and spinning mills due to the increase in the prices of cotton. Big textile mills were taking interest in importing cotton from abroad because the rate of local cotton is approximately Rs 600 to Rs 800 more than the imported cotton.
Views of federal minister in seminar organized in connection with the World Cotton Day creates disappointment among stakeholders. If the situation is not changed, the cotton crisis will escalate in the coming years. According to statistics released by Pakistan Cotton Ginners Association till October 1 around twenty lac bales were produced which is ten lac bales less as compared to last year. if the situation remained like this then 60 lac will be imported from abroad. The burden of which will have to be borne by the already ailing economy.
Bullish trend was witnessed in the international cotton markets. The rate of New York Cotton market increased till Wednesday due to the fears of loss due to Delta hurricane but on Thursday after the release of USDA weekly export report which was unexpectedly negative New York’s cotton fell, later on increased on closing of week. The rate of cotton remained stable in Brazil, Argentina, and Sudan while bullish trend was witnessed in the rate of cotton in India.
The rate of cotton in Sindh is in between Rs 8500 to Rs 9400 per maund. The rate of Phutti in Sindh is in between Rs 4000 to Rs 4800 per 40 kg. The rate of cotton in Punjab is in between Rs 8900 to Rs 9800 per maund. the rate of Phutti in Punjab is in between Rs 3900 to 5100 per 40 kgs. The rate of Phutti in Overall prices of cotton were in the range of USC 63~73 Lbs. (8500~9800/ maund).
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 61.00 | 64.00 | +3.00 |
| Highest | 70.00 | 73.00 | +3.00 |
CRUDE OIL:
Crude Oil prices opened at USD 39.22 with high level as compared to last week closing figures.
In this week, crude oil prices showed mix trend and closed on positive side at the end of week.
In last day of the week, Crude Oil price closed at USD 40.60 with increase of USD 1.38 cents as of opening figure of week.
| Lowest | Highest | Change | |
| Price | 39.22 | 40.60 | +1.38 |
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 positive note with figure of 1.18 and British Pound also closed on positive note with figure 1.30 against USD.
| Selling | Buying | |
| LC Sight | 163.72 | 163.67 |
| LC 120 Days | 163.23 | 163.18 |
| Open Market | 165.84 | 162.06 |
NEW YORK COTTON FUTURE:
New York Cotton futures opened on higher levels on Monday as compare to previous week’s closing figures.
YCF showed upward trend in this week, except of one session and closed on positive side by the end of week.
At last day of the week, DEC 2020 closed at 67.64 with increase of 161 point.
At last day of the week, MAR 2021 closed at 68.42 with upward of 150 points.
At last day of the week, MAY 2021 closed at 69.12 with rose of 154 point.
PAKISTAN YARN MARKET:
Local yarn market jumped up followed by raw cotton prices. There was daily price increased and customer was panic in their buying against sold orders. Prices are increased Rs.10/lbs approx. as compare to last week. Every mill has sale for next 3~4 weeks and no one have ready delivery. Most counts shorts in delivery due to massive demand.
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 pc yarn prices will also increased.
Following are current asking prices of yarn in local market based on ex mills:
| Count | Price US$/Bale |
| 16/1 CD | 430 – 445 |
| 20/1 CD | 460 – 475 |
| 30/1 CD | 500 – 520 |
| 20/1 CM | 510 – 525 |
| 30/1 PC 52:48 | 400 – 410 |
| 40/1 CM | 630 – 650 |
| 60/1 CM | 885 – 910 |
| 80/1 CM | 1150 – 1240 |
EXPORT YARN MARKET:
Market showed bullish sentiment as prices increased sharply. Customers remained in market and kept on booking bulk quantities with the increase of 10% in just 1 week time. Suppliers are quite firm and not showing any flexibility in asking prices. at the same time, customers are also under bullish sentiment and buying at every prices which is offered by buyers.
We might see further increase of 5% in days to come. Major reason is shortage of cotton crop worldwide as well good placements of finished products orders. This has boost up the demand and prices are continuously on the rise. 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.
Chinese customers were continuously in the market and kept on placing orders at any prices, suppliers are booked till December and offering onward deliveries.
Since the market is very uncertain hence the yarn rates are not available.
PAKISTAN FABRIC MARKET:
The local fabric market extended further gain and kept its upward momentum throughout the week for both narrow and wider width fabrics.
Though weavers received inquiries with increased inflow but buyers could not book orders as much as they wish to do because yarn prices remained highly volatile and towards the end of the week majority of the weavers forced to either stop offering or withdraw their offered prices.
Towards the end of the week almost 5-6% price increase observed due to sudden rise in yarn prices. Limited orders confirmed in the market at increased price level as compared to last week level. Weavers are comfortably booked in narrow width till end November’20 but in wider width weavers are comfortably booked till early January and offering onward deliveries.
Local fabric prices of regular items are as follows:
| Construction | Price US$/YD ExMill |
| 20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN | 1.14 – 1.16 |
| 16X12/108X56 63″ 3/1 | 1.26 – 1.28 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.96 – 0.98 |
EXPORT FABRIC MARKET:
Improved business activity was seen during the week with limited business materialization. Limited order quantities were booked by China, Korea and Japan customers. There was good quantity of order inquiry from Bangladesh but customers did not place orders due to high prices offered by the suppliers. Supplier asking prices were firm throughout the week however further increase in prices was seen towards end of the week due to further increase of cotton and yarn prices.
Raw material prices were increased in other cotton growing areas other than Pakistan. Most of the suppliers held their offers by last working day due to very abnormal market situation.
Customers from exports are now holding their buying decision due to further 5~6% fabric price increase. Currently suppliers are booked till mid of Nov and offering end Nov onward deliveries for narrow width fabric however 1/1 order deliveries from Jan and Feb onward.
European customers remained mixed with limited business activity.
Narrow width buyers have less demand as they were only checking prices during the week however wider width customers booked good quantities with their selected suppliers mainly in percale 1/1 with Jan, Feb deliveries.
Home textile sector is very much active and suppliers are still offering good prices based on imported yarn from 30/1 onward because local yarn prices for 30 and above yarn counts are very higher.
| Construction | Price US$/YD CNF Far East |
| 20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN | 1.16 – 1.18 |
| 16X12/108X56 63″ 3/1 | 1.28 – 1.30 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.98 – 1.00 |
BED LINEN & TOWELS:
In bedding and towels supply side within Pakistan, order deliveries are stretching to over 90 days and for repeat 50 to 60 days.
Prices are firm to a month’s level.
GARMENTS:
Garment sector of Pakistan have observed a healthy demand of apparels from US and European market. Industry is fully operational with orders in hand and offering January onward deliveries for the new inquiries. Single-use protective items such as face masks and gowns have been in high demand. Also, the report examines a variety of innovations in materials for medical protective clothing, it analyses some of the latest antiviral finishes for medical protective clothing, and it provides an outlook for the future.
With all the negative and tragic parts of Covid-19 recently, it also has initiated a bit of positive change. Big brands such as Ralph Lauren, Kenneth Cole, Burberry, and Chanel, are pitching in to help with relief efforts. The fashion industry is heading towards an exciting time ahead. Though the world is facing unprecedented changes, it is still spinning and consumers are still buying. Due to recent upward and firm prices of yarns, apparel manufacturers are not showing any flexibility in garment prices.
GOING FORWARD:
Local yarn market is expected to remain volatile due to uncertain cotton prices. Prices will remain strong and firm with tendency upward until demands is slow.
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 since last 10 years, it seems that prices will remain on same levels, otherwise buyers may shift for import of cotton.
Local fabric demand was good in the market as dyeing units and local brands kept on buying their required quantities. Prices further increased around 5~6% towards end of the week. It is expected that fabric prices will remain upside due to hike in yarn prices.
Export yarn market showed bullish sentiment as customers have booked handsome quantity orders. it is expected that business activity will remain good in days to come.
Export fabric activity may remain slow due to too much increase in prices in narrow width however wider width business activity will remain good despite of increase in prices.
Bedding and towels market is going all strong with excellent order bookings, prices are to remain stable.
Pakistan’s garment industry is fully operational with orders in hand. Prices are quite firm due to upward trend of yarn prices
