PAKISTAN COTTON MARKET
During the last week in the local cotton market, trading persisted to quiet, and volume remained very low. Ginners and international trading companies have limited stocks with them. Buyers are focusing on import and materializing contracts.
New crop arrival may start by end of May and expected that in new season production will increase due to better profit margins, as compared to the last season’s price levels.
The future trading of Phutti for the next year is going on. The Putti was sold between Rs 7400 to Rs 8400 per 40 kg for delivery between May 15 and June 15 to June 20. The sowing of cotton has
started in some areas of lower Sindh and hopefully, the arrival of Phutti will soon be started.
In the local cotton market, prices were remained firm this week due to the fewer stocks behind with ginners. KCA was the same at the level of Rs.20000 per maund. The local cotton market prices were
between Rs 18800 ~20,800 per maund.
Overall bullish trends prevail in international cotton markets. On Friday the Rate of Future Trading of New York Cotton after increasing by 4.5 American cents reached the highest level of 126 American cents. According, to the weekly USDA export and sales, report 371,400 bales were sold while 325,500 bales were exported. A bullish trend prevails in the cotton markets of Brazil, Central Asia, Africa, and India.
The cotton market continues to follow its fundamentals, despite the mixed bag of economic news portrayed by the Russian war and the severe inflation woes facing the U.S. economy. Cotton demand continues strong, as exhibited by export sales for both old crops and new crops. Demand carried the May contract to an all-time high this week. The market will get its next look at the supply side of the price equation with the release of USDA’s March planting intentions, March 31, less than two weeks away. With futures prices above the dollar level, some are suggesting that demand will slow, and excessive supply will overtake the market’s bullish attitude.
The price of cotton was between Rs 18,800 to Rs 20,800 per maund while Phutti is almost finished. The price of Phutti was in the range of USC 1.27~1.41 Lbs. (18,800~20,800/ maund).
Conclusion: Considering the futures trading in the international markets, the price of cotton in the coming season will also be higher than that of other crops. It seems that the market will remain firm to upward due to the international demand for cotton all over.
|Opening Of The Week||Closing Off the Week||Change|
Crude Oil prices opened at USD 103.01 on an extraordinary dropped as compared to last week’s closing figures.
In this week, crude oil dropped in the next two sessions, later showed an upward trend till closing, and closed on the positive side by the end of the week.
On the last day of the week, Crude Oil prices closed at USD 104.72 with an increase of 1.71 cents as of the opening figure of the week.
|Opening of Week||Closing Of Week||Change|
Last week values of the Pak rupee depreciated against US Dollar, other major currencies showed mix trend in both Interbank and open markets.
At the end of the week, Euro closed on a positive note with a figure of 1.10 and British Pound also closed on a positive note with a figure of 1.32 against USD.
|LC 120 Days||178.77||178.72|
NEW YORK COTTON FUTURE
New York Cotton futures opened on lower levels on Monday as compared to the previous week’s closing figures.
NYCF overall showed an upward trend in a whole week and closed on positive by the end of the week.
On the last day of the week, MAY 2022 closed at 126.86 with upward of 809 points.
On the last day of the week, JULY 2022 closed at 123.03 with a rose of 791 points.
On the last day of the week, OCT 2022 closed at 110.33 with an increase 402 of points.
LIVER POOL INDICES
Liverpool Index A was opened at 133.45 with a lower level of the previous week’s closing figure.
In this week’s Index, “A” rose extraordinary by the next day and later dropped in the next two sessions, hence recovered again on closing and closed on the positive side by the end of the week.
On the last day of the week, LPI “A” closed at 136.45 with an increase of 300 points.
|Opening of the Week||Closing of the Week||Change|
PAKISTAN YARN MARKET
The local yarn market continued stable in asking prices with peddling inquiry in the general market. Sellers were captivated in selling the yarn whereas buyers hold booking further yarn and limited activity was done. The raw cotton prices in the Global market followed by NYCF. On another side presently the acute pressure of sales in the challenging market is anxiously expected if NYCF’s inclination is downward.
PSF prices were amplified by Rs.5/kg dated 14th March 2022 IFL in the domestic market. PTA, MEG prices were firm in the international market and crude oil prices also continued invariable by end of this week. For next week, prices are anticipated to remain firm or stable. & yarn rates are projected to remain strong as well.
Faisalabad trading market was again gentle and limited activity was seen. Traders were in selling their stocks and loom holders were at a tough theme in yarn buying due to upwelling in electricity and other outflows. Fine counts demand was the usual and reserved sale of PV/Viscose reported instead of increased raw fiber prices.
About the prospect market, it is foreseen that yarn prices will be conversing to local cotton prices and
international trends of NYCF, the raw material aspect will control the yarn price consequently. Further prices trend will be according to the demand and supply of different yarn counts which will lead to the price level.
Followings are recent querying prices of yarn in local market based on ex mills:
|Count||Price in Pak Rupees / 10 LBS||Price US$/Bale|
|16/1 CD||3128 – 3240||695 – 720|
|20/1 CD||3173 – 3353||705 – 745|
|30/1 CD||3443 – 3600||765 – 800|
|20/1 CM||3758 – 3870||835 – 860|
|30/1 PC 52:48||2655 – 3060||590 – 680|
|40/1 CM||4365 – 4500||970 – 1000|
|60/1 CM||5828 – 6165||1295 – 1370|
|80/1 CM||8595 – 8910||1910 – 1980|
EXPORT YARN MARKET
Export yarn market showed slightly improved business activity.
Customers have floated good numbers of inquiries against which some deals were matured as well.
Suppliers were actively offering prices and followed the inquiries to get orders.
It has been noticed that cotton prices are becoming bullish again which is putting note able impact on prices.
However, customers are still very cautious buying for the reason of slow orders from their end customers. Most of the customers are still indecisive whether they should place an order at current prices or should wait for some time to get a better deal.
If we overall analyze the market conditions, despite the upward trend of cotton, yarn prices are still slow and not showing any upcharge as demand is very dull. We might see limited business activity in days to come with customer desired price levels.
Chinese customers floated good numbers of inquiries against which order materialization was quite slow. Customers remained in the market and placed orders only where they received desired price levels. Covid has once again hit Chinese provinces which is another factor of business slowing down.
European customers remained on the sideline. Very limited numbers of inquiries were floated against which business activity was almost nil. They are still expecting a decline in prices which was the reason for slow business activity.
Conclusion: The export yarn market showed lackluster business activity despite the presence of a good number of inquiries. Suppliers are in flexible mode and but customers are still indecisive and not showing any response on high prices. however, a good number of inquiries are under discussion and we might see business confirmations in days to come.
|Count||USD / Bale|
|16/1 CD||670 – 675|
|20/1 CD||680 – 690|
|20/1 CM||760 – 770|
|16/1 CM||750 – 760|
|20/2 CD||725 – 735|
|24/2 CD||790 – 800|
|10/1 CD SIRO YARN FOR WEAVING||620 – 640|
PAKISTAN FABRIC MARKET
In the current week under review, the local fabric market remained dull, therefore thin trading was reported throughout the week for both narrow and wider width fabrics.
Local finishers remained sidelined and did not share bulk inquiries owing to the prevailing soft trend in
international and local cotton markets. As a result, negligible business materialization was reported in the market.
Buyers believe that due to the absence of firm inquiries the market may ease down considerably in the
coming weeks so they are waiting for the right time for their fresh buying and also to average out their last high-level buying.
Weavers remained soft in their asking prices as compared to last week due to a soft trend in yarn prices but ready to negotiate further against any firm bid.
Currently, weavers are booked in narrow width looms till the end of April’22 and also have coverage of their wider width looms till early May’22 ~mid-May’22 and offering onward deliveries.
Going forward, we foresee the same trend with slight trading fluctuations due to the prevailing current
|Construction||Price US$/YD Ex Mill|
|20CDX16CD/128X60 – 63″ 3/1 ”S” TWILL PAK CTN||1.63 – 1.65|
|16X12/108X56 63″ 3/1||1.78 – 1.80|
|20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN||1.33 – 1.35|
EXPORT FABRIC MARKET
Far Eastern markets are quite slow for the last couple of weeks. Customers are booking only their urgent orders. They are not deciding on bulk orders due to slow demand.
Asking prices were softened during the week due to slow market sentiments and less demand. Suppliers
reduced about 2% of their prices however it got firm towards the end of the week due to a hike in NYCF.
Suppliers held their offers for some time to understand the market trend.
Currently, suppliers are booked till the end of April and offering early ~ mid-May onward deliveries. Some of the suppliers are still offering end April deliveries as they have production space.
Another week went slow for European and USA customers as they are not taking interest in fresh buying due to slow demand and unstable market situation.
Wider width suppliers could not extend their deliveries hence they are offering May deliveries nowadays. It stretch to 60 days while it was 80~90 days some time back.
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||1.62 – 1.64|
|16X12/108X56 63″ 3/1||1.78 – 1.80|
|20CDX20CD/108X58 63″ 3/1 ”S” TWILL PAK CTN||1.32 – 1.34|
BED LINEN & TOWELS
Home Textiles inquiry flow was slow this week as customers are expecting a decrease in prices. Due to
uncertain political situations, worldwide customers are reluctant to purchase as all customers are
reviewing the situation. US Market Week is starting from 21-Mar-22 and there is a hope of new order
confirmation during the upcoming week.
The manufacturers are concerned due to low business in hand as factories are running at 50-60%
capacities. There is also a financial crunch developing throughout the textile industry due to vessel
congestion and change of payment mode of factories.
Pakistan’s garment industry has shown immense growth in recent months. Factories have received
enough amount of orders to fill their factories. However, on the other side, dyeing units are fully
booked and extended their deliveries due to overselling till June. As per the current status, due to inflation and the Russian war, customers are quite nervous as the market situation is quite uncertain in the EU. Yarn prices in Pakistan are also getting bearish and orders with knitwear companies are dropping. Some leading manufacturers in Faisalabad and Karachi have started offering their dyeing capacity to garment producers without in-house dyeing.
This is evidenced by customers now showing interest in sustainability products as well as specialty fibers such as Tencel, Modal, Viscose, Lyocell, and others. Already, customers are also demanding accessories made from recycled material, which we usually use in garments, care labels, hangtags, etc.
Turkish Textile Manufacturers Feel Russia-Ukraine Pain: More than $1 billion in Turkey’s textile trade may be at risk if Russia’s war on Ukraine continues unleashing chaos in Eastern Europe.
Maersk Continues Distancing from Russia: Ocean liner A.P. Moller-Maersk continues to distance itself from business in Russia, but not first without recovering its containers. CEO Soren Skou told Reuters Tuesday it is still calling at Russian ports to pick up some 50,000 cargo containers stuck in the country.
Australia keen to develop manufacturing hub in Bangladesh: Australia has reportedly expressed interest to develop a manufacturing hub in Bangladesh and buyback goods to be produced there or exported to European and other countries. Australian businesses will provide inputs like wool, cotton, timber, meat, hides, and grains to Bangladeshi industrialists, who will produce goods and re-export them to Australia or Europe.
About the prospect market, it is foreseen that local yarn prices will be conversing to local cotton prices and international trends of NYCF, the raw material aspect will control the yarn price consequently. Further prices trend will be according to the demand and supply of different yarn counts which will lead to the price level.
Considering the futures trading in the international markets, the price of local cotton in the coming season will also be higher than that of other crops. It seems that the market will remain firm to upward due to the international demand for cotton all over.
The export yarn market showed lackluster business activity despite the presence of a good number of inquiries. Suppliers are in flexible mode and but customers are still indecisive and not showing any response on high prices. however, a good number of inquiries are under discussion and we might see business confirmations in days to come.
The export fabric market remained slow during the week due to less demand and no customer interest in fresh buying. It is expected that business may remain slow in the coming week as well however prices will react with the international and NYCF despite less demand.
The home textile manufacturers are concerned due to low business in hand as factories are running at 50-60% capacities. There is also a financial crunch developing throughout the textile industry due to vessel congestion and change of payment mode of factories.
The garment industry situation is quite anxious due to the Russian war and inflation. However, the situation will become clearer in the coming weeks