Pakistan Cotton Market:
During the last week in local cotton, activity remained good buyers showed interest in buying due to the increase in prices and demand of the local yarn market. On the other hand, import is being difficult after every passing day as the currency hit the essence badly. The cost of import increased sufficiently and put all importers in difficulties.
Local cotton prices remained firm to upward due to the increase in demand for cotton. The rate of cotton was Rs 20,000 to Rs 23,000 per maund. The price of Phutti is between Rs 8,500 and 10,500 per 40 kg. KCA remained the same at the level of 22,000 per maund. PSF increased rs.10 this week and reached the level of 340 per/kgs.
An alarming reduction of 2.6 million bales in cotton production is estimated this season. The total production will be around 5 million bales and about 7 million bales of cotton will have to be imported. At present, the import contracts of about 5.6 million bales have already been signed.
In the domestic cotton market, cotton prices have continued to rise since last week. an increasing trend was witnessed in the rate of Phutti. Domestic cotton stocks are decreasing day by day. Letter of Credit issue is still going on due to the high rate of the dollar and as a result, textile mills have to buy local cotton at high prices despite its low quality. On the other hand, the ginners who had kept huge stocks started selling their cotton reasonably. It looks the bullish trend will continue in the coming days.
Local cotton farmers are preparing to start sowing cotton for the next season. At present, due to winter, the wheat harvest is delayed. However, the farmers of Lower Sindh believe that by the end of February partial sowing of cotton will be started.
According to USDA’s weekly export and sales report for the year 2022-23, 2 lac 71 thousand and 600 bales were sold. China was at the top by purchasing 87,000. Turkey bought 72,900 bales and came second. Vietnam bought 44,700 and ranked third. Pakistan took 18,200 bales.
The 2022/23 U.S. cotton supply and demand forecasts in a monthly report, show slightly lower mill use and higher ending stocks relative to last month while production and exports are unchanged. The mill use forecast is lowered by 100,000 bales to 2.1 million on recent lower rates of monthly utilization. The upland cotton marketing year average price received by producers is projected at 83 cents per pound, unchanged from January. World 2022/23 cotton ending stocks are 850,000 bales lower this month as expected output falls 1 million bales and consumption is projected 190,000 lower. India’s crop is reduced 1 million bales as a continued slow pace of market arrivals tempers previous optimism, and Franc Zone production is 600,000 bales lower this month due to insect damage this season. China’s crop is raised 500,000 bales on a record pace of Xinjiang inspections in January, and Pakistan’s is raised 200,000 bales on favorable arrivals data. World 2022/23 consumption is 200,000 bales lower this month as a 500,000-bale increase for China is more than offset by reduced expectations for Indonesia, Pakistan, the United States, and Vietnam. World trade is projected 1.3 million bales lower, with prospective imports lower for Pakistan, Indonesia, Egypt, and Bangladesh, and prospective exports lower for India, Brazil, Benin, and Egypt.
The rate of cotton in Sindh is in between Rs 20,000 to Rs 22,500 per maund. The rate of Phutti as per quality is in between Rs 8,500 to Rs 10,500 per 40 kg. In Punjab province, the price of cotton was Rs 20,500 to Rs 23,000 per maund, and the price of Phutti was Rs 8,500 to Rs, 11,000 per 40 kg.
The price of Phutti was in the range of USC 0.90~1.04 Lbs. (20,000~23,000/ maund).
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 89.00 | 90.00 | 1.00 |
| Highest | 102.00 | 104.00 | 2.00 |
Crude Oil:
Crude Oil prices opened at USD 74.11 a higher level as compared to
last week’s closing figures.
In this week, crude oil showed upward sentiment and closed on the higher side by the end of the week.
In the last day of the week, Crude Oil prices closed at USD 79.72 with an increase of USD 5.61 cents as of the opening figure of the week.
| Opening of Week | Closing Of Week | Change | |
| Price | 74.11 | 79.72 | 5.61 |
Exchange Rate:
Last week’s values of Pak rupee showed appreciation against US Dollar’s, and other major currencies showed a mixed trend in interbank and open markets.
At the end of the week, Euro closed on a negative note with a figure of 1.07 and the British Pound closed on a positive note with a figure 1.21 against USD.
| Selling | Buying | |
| LC Sight | 268.78 | 268.73 |
| LC 120 Days | 257.22 | 257.17 |
| Open Market | 273.61 | 267.70 |
New York Cotton Future:
New York Cotton futures opened at a lower level on Monday than the previous week’s closing figures.
NYCF showed an overall mix trend during the week and closed on the upper side by the end of the week.
On the last day of the week, DEC 2022 closed at 85.27 with an increase of 200 points.
On the last day of the week, MAR 2023 closed at 85.58 with a rose of 147 points.
On the last day of the week, MAY 2023 closed at 86.07 with an upward of 122 points.
On the last day of the week, JUL 2023 closed at 84.97 with a surge of 119 points.
Liver Pool Indices:
Liverpool Index A opened at 101.70 a higher level than the previous week’s closing figure.
This week Index “A” showed mix trend in this week and closed on the lower side by the end of the week.
On the last day of the week, LPI “A” closed at 100.75 with a decrease of 95 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 101.70 | 100.75 | -0.95 |
Pakistan Yarn Market:
The Local yarn market is steady and while soft by the start of the week following NYCF and the local cotton market. The deliberate activity was seen with a partial stream of inquiries only urgent essential yarn was booked. Customers were in a perceiving state & the raw cotton prices in the Global market are followed by NYCF
PSF prices were increased by Rs.10/kg dated 06th Feb 2023 by IFL in the domestic market. PTA and MEG prices remain tolerant in the international market plus the increase of the US $ parity effect in Pak rupees on importing fiber. While crude oil prices down by the end of this week. For next week, PSF prices are expected to remain stable or might be slightly up.
Faisalabad’s trading market has limited sales of PV and Viscose yarns. No demand in PC/CVC has been seen and financial crunch and cash liquidity issues remain. Traders were significant with their stocks and loom owners were in an unbending position in yarn managing.
The followings are the latest querying prices of yarn in the local market based on ex-mills:
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3650 – 3750 | 545 – 560 |
| 20/1 Carded Weaving | 3700 – 3850 | 550 – 575 |
| 30/1 Carded Weaving | 3900 – 4100 | 580 – 610 |
| 30/1 PC Carded Weaving 52:48 | 3050 – 3200 | 455 – 475 |
| 40/1 Combed Compact Weaving | 4500 – 4650 | 670 – 690 |
| 60/1 Combed Compact Weaving | 6200 – 6400 | 925 – 950 |
| 80/1 Combed Compact Weaving | 8200 – 8500 | 1220 – 1265 |
| 40/1 CVC Carded Weaving 60:40 | 3700 – 3850 | 550 – 575 |
Export Yarn Market:
Export yarn business market activity was moderate during the week.
Cotton prices showed a firm trend in Pakistan and good demand from local spinners was observed due to uncertainty caused by currency. At the moment, prices of imported cotton are on the rise and it is expected that suppliers will prefer to buy cotton from the domestic market due to severe fluctuation in USD.
Currency put a significant impact on yarn prices in the domestic market and all suppliers increased their prices in parity of strong USD against PKR. At the same time, the challenges of cotton shortage is becoming serious as spinners are not getting shipments of Imported cotton due to which they are forced to book very expensive cotton from the local market. Even cotton shipments that are coming in the import are of exceptionally high prices which are causing heavy losses to spinners
On the other side, customers also showed a slight improvement in their prices and book orders at increased levels. Spinners were interested to sell in export due to the currency edge.
It seems that business activity will remain good in the days to come.
Chinese customers remained active and floated handsome numbers of inquiries. Business materialization was moderate as customers confirmed orders with all suppliers at improved prices. This has made suppliers firm and comfortable.
European customers were also active and floated a decent number of inquiries. However, order confirmations remained limited as they are slowly and gradually accepting the increase in prices. So, we might see orders to be confirmed in the month of February.
| Count | USD / Bale |
| 16/1 Carded Weaving | 570 – 580 |
| 20/1 Carded Weaving | 580 – 590 |
| 20/1 CM | 615 – 620 |
| 16/1 CM | 610 – 615 |
| 20/2 CD | 600 – 605 |
| 24/2 CD | 625 – 630 |
| 10/1 CARDED SIRO YARN WEAVING | 480 – 500 |
Pakistan Fabric Market:
In current week under review the local fabric market remained slow and dull throughout the week due to the lack of orders for both narrow and wider width fabrics.
Local buyers remained sideline and did not share inquires due to confused market sentiments prevailing in the local fabric market. Towards the end of the week market closed with slow market sentiments and with limited order materialization for both narrow and wider width fabrics.
PC/CVC yarns remained hot commodities and spinners are not ready to book bulk quantities due to which weavers are facing hard time in offering fabric prices.
Currently, weavers are booked in narrow width till End February’23 and have booked their wider width looms till end of February/early March’23 and offer onward deliveries. Weavers have booked their special looms till 3rd week March ~ end Mar’23.
| Construction | Price US$/YD Ex Mill |
| 16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN | 1.41 – 1.43 |
| 20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN | 1.22 – 1.24 |
| 20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN | 1.06 – 1.08 |
Export Fabric Market:
Far Eastern customers has shown their interest and exchanged decent number of inquiries during the week however business materialization was slow as customers were looking lower prices about 6~8% compared with the offered prices.
Asking prices were same as of last week although the yarn prices were increased but USD compensated the prices in export business.
Currently good suppliers are booked till mid of March and offering End Mar onward deliveries whereas average suppliers are booked for next 2~3 weeks and offering onward deliveries.
European customers were attending TexWorld and Premier Vision held in France during the week.
Suppliers were happy as they have conducted good meetings with the customers however business deals were limited. Customers are still looking for lower prices whereas the offered prices are about 8~10% higher then their expectations / target prices.
Wider width suppliers are booked till end of March and offering onward deliveries.
| Construction | Price US$/YD CNF Far East |
| 16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN | 1.44 – 1.46 |
| 20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN | 1.26 – 1.28 |
| 20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN | 1.06 – 1.08 |
Bed Linen & Towels:
Home Textiles overall business activity is slow as new business placements are very limited, it seems this trend will continue till March 2023. Factories are getting hopeful of having some good placements in NY Market Week.
Current condition of Pakistan economy is also hurting badly the Industry as factories are facing challenges in import of raw materials, now things are being improved and hoping that this issue will also resolved.
Low demand around the globe and competitive prices from other regions are challenging for Pakistan in year 2023.
Garments:
Pakistan’s garment industry is going through a tough phase in terms of getting orders from its global customers. On the other hand factories’ capacities are not covered due to a lack of orders that disturbs their production processes. The reason for not placing orders is inflation which kept the buyer stop to placing big orders. From various sources, we have come to know that there is a ray of hope incurred in the market with positive sentiments. Also came to know that brands and retailers have started placing orders that can put a positive impact on the market but for that, we have to wait and see.
At the same time, new developments for SS24 will also be discussed. Factories have space to offer delivery from April 2023 for new incoming requests.
Sustainability remained an important element as most of the customers especially leading global brands required eco-friendly products. Pakistan garment factories have got all the necessary setup and compliance requirements to meet as required by customers. Along with sustainable products, customers have shown interest in Special fibers as well as textured fabrics garments
Going Forward:
About the upcoming market for local yarn, it is appraised that demand from patrons leads to local yarn prices with unhurried activity. Further price fondness will be according to the market and end customer requirements leading to the price level.
Local cotton market remained active and buyers took interest in buying due to the difficulty in import of cotton. In Pakistan gradually season is going to finish and new sowing is expected in Feb in the lower Sindh area. Overall textile demand is not increasing, hence uncertainty prevailed.
The local fabric market remained slow during the week. We expect slow sentiments with limited trading activity and slight downward correction in fabric prices in days to come.
The garment industry of Pakistan facing a tough phase, however, there is a ray of hope has been raised that brands have started placing orders, and will wait for the coming effects.
For home textile, low demand around the globe and competitive prices from other regions are challenging for Pakistan in year 2023.
