In Last week, buyers and spinners showed cautious buying because the price of phutti and cotton increased considerably. All the big groups of textiles are importing while some mills are buying cotton from the local market.
Stable and firm price trend was witnessed in the prices in this week. The price of good quality cotton was in range of rs. 9000~10500 which is highest in ten years. KCA also increased rs.300 and touched the level of rs. 10100/maund.
The price of cotton is increasing as compared to dollar. This will have bad impact on the export of textile products. On the other hand, cotton will be imported on fewer prices as compared to local cotton.
Overall bullish trend was witnessed in the international cotton markets.
The price of New York Cotton market after increasing reached at the highest level of 70 cent to 71 cent. According to the weekly USDA export report increase of 130 percent was witnessed. Pakistan was the biggest importer after importing 93000 bales. The price of cotton remained stable in Argentina and Sudan while the increasing trend was witnessed in the price of cotton in India. There are chances of increase in the price of local cotton market due to the increase in the price however there are no chances of decrease in the price of cotton in near future.
The government has formed a task force headed by group leader All Pakistan Textile Mills Association Gohar Ijaz. The objective of forming the task force is to improve cotton production. The government has inducted five textile mill owners in this task force who played their role for increasing the cotton production in the country.
The price of cotton in Sindh is in between Rs 8800 to Rs 10200 per maund. The price of Phutti in Sindh is in between Rs 4500 to Rs 5200 per 40 kg. The price of cotton in Punjab is in between Rs 9800 to Rs 10,500 per maund. the price of Phutti in Punjab is in between Rs 4700 to 5500 per 40 kgs. The price of Phutti in Overall prices of cotton were in the range of USC 66~79 Lbs. (8800~10,500/ maund).
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 67.00 | 68.00 | 1.00 |
| Highest | 77.00 | 78.00 | 1.00 |
CRUDE OIL:
Crude Oil prices opened at USD 40.83 with low level as compared to last week closing figures.
In this week, crude oil prices showed mix trend and closed on negative side at the end of week.
In last day of the week, Crude Oil price closed at USD 39.85 with decrease of USD 0.98 cents as of opening figure of week.
|
|
Opening of Week |
Closing Of Week |
Change |
|
Price |
40.83 |
39.85 |
-0.98 |
EXCHANGE RATE:
In last week values of Pak rupee apricated 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 | 161.67 | 161.62 |
| LC 120 Days | 160.83 | 160.78 |
| Open Market | 163.77 | 160.03 |
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 showed upward trend and dropped on closing, hence closed on positive side by the end of week.
At last day of the week, DEC 2020 closed at 71.29 with increase of 13 point.
At last day of the week, MAR 2021 closed at 71.87 with upward of 04 points.
At last day of the week, MAY 2021 closed at 72.45 with rose of 04 point.
PAKISTAN YARN MARKET:
Local yarn market remained firm due to firm prices in raw material. This was first week where prices went stable and activity was made on current market prices. Due to shortage of delivery most of weavers were asking for ready delivery but no mill was offering any counts. Mills are sold for one month forward and offering onward deliveries.
PSF prices was increased by Rs.3/kg by IFL in domestic market dated 19th Oct 2020. PTA, MEG prices were increased after firm prices of oil in international market. Import polyester prices also increased in International polyester fiber. For next week, prices are expected to increase by Rs.2~3/kg.
Faisalabad trading market was active in buying and good trade was made in all counts of cotton yarn. Blended yarn was also in good demand, due to anticipation of increase in polyester there was good business activity.
Following are current asking prices of yarn in local market based on ex mills:
| Count | Price US$/Bale |
| 16/1 CD | 470 – 485 |
| 20/1 CD | 495 – 510 |
| 30/1 CD | 560 – 575 |
| 20/1 CM | 560 – 575 |
| 30/1 PC 52:48 | 425 – 445 |
| 40/1 CM | 690 – 700 |
| 60/1 CM | 925 – 950 |
| 80/1 CM | 1200 – 1290 |
EXPORT YARN MARKET:
Customers from all regions were in market and kept on floating enquiries.
Orders confirmation was slight slow as compared to last couple of weeks but still, good numbers of placements were witnessed.
Export market is very active and prices are better than sale price of domestic market. So, suppliers are showing their interest to sell maximum quantities in export markets.
As per current scenario, it is expected that price of yarn will remain firm and stable with tendency to increase furthers as demand is handsome from all markets.
Chinese customers booked heavy quantities in last couple of weeks and they are still in market for new buying. So, it is expected that good business activity will be witnessed in days to come as well.
European customers are also sharing their firm requirements and business has been concluded for specialized yarn as well as regular items. Hence, we might see more orders placements in days to come
Following were the yarn prices for international markets:
| Count | Korea | Hong Kong | Taiwan | Japan |
| 16/1 CD | 465 – 475 | 465 – 475 | 465 – 475 | 465 – 475 |
| 20/1 CD | 480 – 490 | 480 – 490 | 480 – 490 | 480 – 490 |
| 20/1 CM | 540 – 550 | 540 – 550 | 540 – 550 | 540 – 550 |
| 30/1 CD | – | – | – | – |
| 32/1 CD HOS UNWAXED 100% COT. | – | – | – | – |
| 30/1 CM | 560 – 570 | 560 – 570 | 560 – 570 | 560 – 570 |
| 32/1 CM | 580 – 590 | 580 – 590 | 580 – 590 | 580 – 590 |
| 24/2 CD | 550 – 560 | 550 – 560 | 550 – 560 | 550 – 560 |
PAKISTAN FABRIC MARKET:
The local fabric market showed firm activity and prices kept on rising throughout the week for both narrow and wider width fabrics.
Buyers started floated inquiries in the market as yarn and fabric prices increasing sharply and some weavers were still hesitant to offer. However few weavers offered prices with increased inflows and with same day validity
Weavers orders with increased inflows as compared to last week level. Almost 2-3% price increment reported towards the end of the week. Weavers are comfortably booked in narrow width till early December’20 but in wider width weavers are comfortably booked till 3rd week January ~ End January’21 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 | 1.16 – 1.18 |
| 16X12/108X56 63″ 3/1 | 1.29 – 1.31 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.98 – 1.00 |
EXPORT FABRIC MARKET:
Improved trading activity was seen from Far Eastern markets during the week under review. Customers from Korea, China and Japan has discussed bulk orders quantities and placed the same with airjet suppliers. There was good inquiry from Bangladesh in bulk but no considerable buying was noticed due to too much difference between asking price and targets.
Suppliers kept their prices firm due to firmness in raw material prices and appreciation of our local currency against US. Dollar
Currently good suppliers are booked till mid of Dec and offering end Dec onward deliveries whereas average suppliers are booked till end of Nov and offering mid Dec onward deliveries.
Average business activity was noticed from European and USA markets. Suppliers have booked decent quantities with their European customers especially in Germany, Italy and Portugal.
Wider width suppliers have good sales position as they are booked till Jan and offering Feb onward deliveries. Also they are keeping their prices firm. Earlier they were importing 30/1 and 40/1 to accommodate their orders but now import yarn prices also increased hence suppliers are only working fabric based on local yarn prices.
Following were the closing rates based on CNF Far Eastern markets:
| Construction | Price US$/YD CNF Far East |
| 20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN | 1.15 – 1.17 |
| 16X12/108X56 63″ 3/1 | 1.26 – 1.28 |
| 20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN | 0.98 – 1.00 |
BED LINEN & TOWELS:
The sector of Bedding and Towels manufacturers in Pakistan has seen an exponential rise in the prices driven by strong raw material demand, which is in a difference of up to 17 percent YOY. This has led to made-ups prices increasing to over 6 to 12% in most cases. Suppliers are comfortable with order bookings until March 2020, hence they are not in a hurry to offer sharp prices which might put them in a lose if the raw material keeps on increasing, however they are in favor of re-negotiating prices by adjusting their profits for confirmed orders.
On the hand due to the higher prices, the customers are reluctant to confirm orders on current week’s prices, and due to the second wave of Corona and leading markets going into lockdown, customers are reluctant to take any decision over new placements within this month. This pattern will prevail in the upcoming weeks as well.
GARMENTS:
Pakistan’s garment industry is sailing through its healthy and fruitful journey. After a difficult quarter 2, trade activity in apparel industry bounced back by 14% in the third quarter according to an analysis of new order placed and invoices processed during the period. For the new inquiries factories have space to offer with a lead time ranging from ninety days to one hundred and twenty days.
Sustainability remains an important element as suppliers have realized the public anger at the lack of action on climate change in most foreign markets which could ultimately result in dropping down the sales. Factories are also investing in technology as they have observed that it is helping customers to get on board as collaborative partners to ensure that suppliers have a digital supply chain.
GOING FORWARD:
It is expected that domestic yarn market will remain dependent on raw material and domestic cotton prices for next weeks which are expected to remains firm due to shortage of quantity. Yarn prices will also remain firm due to good demand.
In the local cotton market, comparatively business was slow down due to rapid increase in prices. Buyers focused on import of cotton, deprecation of US$ against Pak currency also gave edge to buyers. It seems that prices will remain firm on this level.
For the Export yarn, market remained firm and stable with handsome business activity. Suppliers are under bullish sentiment and increasing prices in line of cotton prices. hence, we might see good business activity with increased prices in days to come.
Export fabric observed good sales during the current week and expected to remain good in coming days as well due to good demand from Far Easter sector however limited booking may observe for European and USA market due to second wave of Covid.
Garment industry is sailing through its healthy and fruitful journey. After a difficult Q2, trade activity in apparel industry bounced back. Factories have space to offer with a lead time ranging from ninety days to one hundred and twenty days.
Due to high demand of raw material, the prices will remain firm in the bedding and towel sector at their current higher levels, this will affect the order bookings going forward.
