Pakistan Cotton Market:
During the last week, In the domestic cotton market cotton prices remained soft with slow business volume. The textile products business is not increasing that is why mills are also in trouble and unable to understand the future market position. Textile spinners continued cautious buying although cotton stocks are going to finish. Import of cotton is still a major problem due to stuck up the shipments at ports because of the dollar shortages.
Local cotton prices were soft to downward due to the deprecation of US$. The rate of cotton was Rs 17,000 to Rs 20,000 per maund. The price of Phutti is in between Rs 7,000 and 9,000 per 40 kg. KCA was the same at the level of PKR 19,800 per maund. PSF was the same at the level of 345 pkr/kgs.
Net sales of 425,300 RB for 2022/2023–a marketing-year high–were up 96 percent from the previous week and 97 percent from the prior 4-week average. Increases primarily for Vietnam (131,200 RB, including 1,900 RB switched from South Korea and 1,200 RB switched from Japan), Pakistan (95,600 RB), Turkey (79,600 RB, including decreases of 6,800 RB), China (46,200 RB, including decreases of 18,100 RB), and Indonesia (19,200 RB, including 1,300 RB switched from China and 500 RB switched from Japan), were offset by reductions primarily for Colombia (1,300 RB).
Net sales of 11,900 RB for 2023/2024 were reported for Turkey (6,600 RB), Thailand (4,000 RB), and Colombia (1,300 RB). Exports of 193,600 RB were up 4 percent from the previous week, but down 1 percent from the prior 4-week average. The destinations were primarily to Pakistan (54,300 RB), China (44,000 RB), Vietnam (28,200 RB), Mexico (17,100 RB), and Turkey (15,700 RB).
China’s apparel exports to the US continued to grow in 2022 after a sharp recovery in 2021. However, the growth rate could not be maintained in the last quarter. The two largest economies of the world are involved in a number of geopolitical disputes and also trade wars. But they also know the mutual economic value, and trade mutually for their own benefit.
China’s apparel exports reached at $36.547 billion in 2022 from $34.772 billion of 2021 when there was a sharp recovery after the COVID-19 disruption. The outbound shipment witnessed a sharp fall in 2020 to $25.369 billion from $32.046 billion in 2019. The trade stood at $34.735 billion in 2018 and $32.352 billion in 2017.
It is interesting to note that cotton exports from the US to China have increased last year despite the former banning the import of cotton and cotton products originating from the Xinjiang region of China. Cotton exports from the US to China jumped to $2.902 billion in 2022 from $1.330 billion in 2021.
The rate of cotton in Sindh is in between Rs 17,000 to Rs 19,500 per maund. The rate of Phutti as per quality is in between Rs 7,000 to Rs 8,000 per 40 kg. In Punjab province, the price of cotton was Rs 17,500 to Rs 20,000 per maund, and the price of Phutti was Rs 7,500 to Rs, 8,500 per 40 kg.
The price of Phutti was in the range of USC 0.81~0.93 Lbs. (17,000~20,000/ maund).
|Opening Of the Week||Closing Of the Week||Change|
Crude Oil prices opened at USD 76.16 with a lower level as compared to last week’s closing figures.
In this week, crude oil prices dropped in next day, later showed upward sentiment till closing and closed on upper side by the end of week.
In last day of the week, Crude Oil prices closed at USD 76.32 with increase of USD 1.60 cents as of opening figure of week.
|Opening of Week||Closing Of Week||Change|
In last week the value of Pak rupee showed appreciation against US Dollar, and other significant currencies showed mix trend in both interbank and open markets.
At the end of the week, Euro closed on a negative note with the figure of 1.06 and the British Pound closed on a negative note with a figure 1.19 against USD.
|LC 120 Days||248.49||248.44|
New York Cotton Future:
New York Cotton futures opened higher on Monday than the previous week’s closing figures.
NYCF showed an upward trend during the week and closed on the higher side by the end of the week.
On the last day of the week, MAR 2023 closed at 85.13 with a hike of 421 points.
On the last day of the week, MAY 2023 closed at 84.90 with an increase of 337 points.
On the last day of the week, JUL 2023 closed at 85.08 with a surge up of 271 points.
On the last day of the week, OCT 2023 closed at 84.47 with an rise of 237 points.
Liver Pool Indices:
Liverpool Index A was remained closed whole the week.
|Opening of the Week||Closing of the Week||Change|
Pakistan Yarn Market:
The Local yarn market continued unhurried slow in demand & stable in prices by the start of the week following NYCF and the local cotton market. The restricted business was seen with a limited flow of inquiry due to an increase in the cost of electricity & other overheads. Whereas buyers are in peculiar positions & the raw cotton prices in the Global market are followed by NYCF
PSF prices stayed stable in the domestic market during the last week ended. PTA and MEG prices remain indulgent in the international market plus the settling of the US $ parity effect in Pak rupees on importing fiber. At the same time, crude oil prices continued to be inflexible by the end of this week. For next week, PSF prices are expected to increase.
Faisalabad’s trading market was slothful and usual business was seen in 100% cotton yarn whereas it had no substantial sales of PV and Viscose yarns. The cash flow system remains thoughtful. At the same time, Traders were embraced with their stocks.
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||3600 – 3650||555 – 565|
|20/1 Carded Weaving||3600 – 3750||555 – 580|
|30/1 Carded Weaving||3800 – 4000||585 – 615|
|30/1 PC Carded Weaving 52:48||3000 – 3150||465 – 485|
|40/1 Combed Compact Weaving||4450 – 4600||685 – 710|
|60/1 Combed Compact Weaving||6150 – 6250||950 – 965|
|80/1 Combed Compact Weaving||8150 – 8450||1255 – 1305|
|40/1 CVC Carded Weaving 60:40||3650 – 3800||565 – 585|
Export Yarn Market:
Export yarn market remained under normal business activity.
Cotton prices showed soft sentiment in Pakistan due to devaluation of PKR against USD and good demand from local spinners. At the moment, prices of imported cotton are on the rise and it is expected that suppliers will prefer to buy cotton from domestic market due to severe fluctuation in USD.
Yarn prices also remained firm and stable and it is expected that prices will remain in same range in days to come as they are forced to book very expensive cotton form local market. Even cotton shipments which are coming in the import are of very high prices which is causing heavy losses to spinners.
On the other side, customers remained in market and kept on checking prices with firm bids as well. Hence, we might see good business activity in days to come.
Chinese customers remained active after coming form holidays and floated handsome numbers of enquiries. Business materialization was also good as customers confirmed orders with all suppliers at improved prices. This has made suppliers firm and comfortable.
European customers were also active and floated decent numbers of inquiries. However, order confirmations remained limited as they are slowly gradually accepting the increase in prices. So, we might see orders to be confirmed during next week.
|Count||USD / Bale|
|16/1 Carded Weaving||565 – 575|
|20/1 Carded Weaving||575 – 580|
|20/1 CM||610 – 615|
|16/1 CM||605 – 610|
|20/2 CD||595 – 600|
|24/2 CD||620 – 625|
|10/1 CARDED SIRO YARN WEAVING||475 – 495|
Pakistan Fabric Market:
Another week closed with slow activity as buyers did not show interest in buying at current level for both narrow and wider width fabrics.
Local finishers shared limited inquiries in current week but those were also for price checking and resultantly week closed with dull activity for both narrow and wider width fabrics in the local fabric market.
Currently, weavers are booked in narrow width till mid-March’23 and have booked their wider width looms till End March’23 and offer onward deliveries. Weavers have also coverage of their special looms till end Mar’23 / early April’23.
|Construction||Price US$/YD Ex Mill|
|16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN||1.40 – 1.42|
|20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN||1.20 – 1.22|
|20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN||1.04 – 1.06|
Export Fabric Market:
Export fabric business remained nominal during the week as limited sale was observed.
Customers are sharing very less target prices which is hard to achieve. Most of the customers are still keeping stock of high price due to which they are trying to get lower price for new orders to somehow compensate their old purchases.
Prices remained stable during the week due to stable raw material prices.
Supplies are booked for next 2~3 weeks and offering onward deliveries.
European and USA buyers have exchanged limited number of inquiries and some deals were reported from the European customers mainly.
Prices for wider width were almost same as of last week.
Suppliers are booked till end of march for wider width and offering early ~ mid April onward deliveries.
Following were the closing rates based on CNF Far Eastern ports.
|Construction||Price US$/YD CNF Far East|
|16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN||1.48 – 1.50|
|20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN||1.34 – 1.36|
|20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN||1.10 – 1.12|
Bed Linen & Towels:
Home Textiles overall business activity is slow and new business are very limited in recent weeks. We are forecasting that this trend will continue till mid this year but it is expected that business activity will slightly improve in March / April but overall situation will remain on slower side.
Overall demand is on slower side around the globe which is affecting business volume in Pakistan and as well as other regions.
Raw material prices are also on higher side, and factories are getting tough time in running the factories.
Pakistan’s garment industry, which continues the same downturn, is struggling as its production capacity is not fully met due to a lack of orders from foreign customers. General world inflation has prevented buyers from placing bulk orders. However, there is a ray of hope that is generating positive sentiment in the market, where some retailers and brands have started placing orders. But this is only the beginning and you will have to wait for the effect. The factories are booked until April-23 and offering delivery afterward.
They find it difficult to predict future demand and are therefore reluctant to place large volumes. At the same time, factories in Pakistan are also struggling to cover fixed costs as the production facilities are not fully operational.
About the upcoming market, it is assessed that mandate from customers leads to local yarn prices with controlled activity. Further price tendency will be according to the market and end customer requirements leading to the price level.
Local cotton trading remained dull. Ginners were interested to sell but buyers were not interested due to the less demand of textile goods. Sindh lower area farmers are preparing for the new year crop sowing by the end of the Feb seems that prices will remain on existing levels in coming days.
For coming weeks, we may expect slow sentiments of local fabric due to expected 26 months high interest rates in upcoming monetary policy to curb inflation.
Export yarn market remained firm and stable with good business activity. There has been good demand from customers against which suppliers kept on quoting prices. Bids are present and it seems that market will receive good orders.
The garment industry is struggling with orders and there is a ray of hope generating, The situation will clear in 2nd quarter of 2023.
For home textile, stocks are still not utilized for all the customers and this is the reason demand is on slower side and demand can only be determined after all stocks are utilized. It is expected that this trend will be continued till Quarter 1 of 2023.