Pakistan Cotton Market:
During the last week, In the domestic cotton market prices remained soft and business activity remained dull. Drastic devaluation of pkr against vs USD imbalanced the market situation. Everyone is confused in confront of the economy situation.
Local cotton prices were soft. The rate of cotton was Rs 18,000 to Rs 20,500 per maund. The price of Phutti is in between Rs 7,000 and 9,000 per 40 kg. KCA up rs. 200 and reached at the level of rs 20,000 per maund. PSF also increased 10 rs per kgs and came at the level of 355 pkr/kgs.
The cotton market saw low business volume previous week. The crisis in the textile sector is getting worse. Sowing of new cotton crop has partially been started. The delay in setting the intervention cotton support price by the government is affecting the crop. In the domestic cotton market, cotton prices continued to fall during the past week due to demand for cotton yarn and sluggish prices. Spinners are cautiously buying cotton while panicked ginners are trying to sell cotton at lower prices
The crisis like situation of the textile industry increased after the government removed the energy incentives of the export-oriented industries including the textile sector. Government has increased the interest rate to 20 percent with 300 points, on the other hand an increased price of electricity, gas is also putting severe uncertainty among the textile sector. In such a case it will become difficult if not impossible to run the industries.
U.S. Export showed data of week, Net sales of 170,600 RB for 2022/2023 were down 60 percent from the previous week and 37 percent from the prior 4-week average. Increases primarily for China (81,600 RB), Vietnam (78,900 RB, including 900 RB switched from China and 100 RB switched from Japan), India (18,400 RB), Turkey (15,200 RB), and South Korea (7,900 RB), were offset by reductions for Pakistan (48,000 RB) and Thailand (6,300 RB).
Net sales of 97,200 RB for 2023/2024 were reported for Pakistan (88,000 RB), Thailand (7,000 RB), and Indonesia (2,200 RB).
Exports of 207,700 RB were up 7 percent from the previous week and 4 percent from the prior 4-week average. The destinations were primarily to Vietnam (50,300 RB), Pakistan (40,900 RB), China (23,200 RB), Turkey (17,600 RB), and Mexico (13,000 RB).
The rate of cotton in Sindh is in between Rs 18,000 to Rs 20,000 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 18,500 to Rs 20,500 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 0.79~0.88 Lbs. (18,000~20,500/ maund).
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 87.00 | 79.00 | -8.00 |
| Highest | 97.00 | 88.00 | -9.00 |
Crude Oil:
Crude Oil prices opened at USD 75.68 with lower level as compared to last week closing figures.
In this week, crude oil price showed upward trend and closed on upper side by the end of week.
In last day of the week, Crude Oil price closed at USD 79.68 with increase of USD 4.00 cents as of opening figure of week.
| Opening of Week | Closing Of Week | Change | |
| Price | 75.68 | 79.68 | 4.00 |
Exchange Rate:
In last week values of Pak rupee depreciated drastically 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 1.06 and British Pound closed on positive note with figure 1.20 against USD.
| Selling | Buying | |
| LC Sight | 283.01 | 282.96 |
| LC 120 Days | 270.39 | 270.34 |
| Open Market | 288.46 | 282.25 |
New York Cotton Future:
New York Cotton futures opened with higher level on Monday as compare to previous week’s closing figures.
NYCF showed mix trend during the week and closed on lower side by the end of week.
On the last day of the week, MAY 2023 closed at 84.17 with drop of 63 points.
On the last day of the week, JUL 2023 closed at 84.79 with slide of 28 points.
On the last day of the week, OCT 2023 closed at 84.42 with decline of 4 points.
On the last day of the week, DEC 2023 closed at 84.26 with no change.
Liver Pool Indices:
Liverpool Index A was opened at 97.35 with higher level of previous week closing figure.
In this week Index “A” showed mix trend in this week and closed on upper side by end of week.
At last day of the week, LPI “A” closed at 100.10 with increase of 275 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 97.35 | 100.10 | 2.75 |
Pakistan Yarn Market:
The Local yarn market was measured and stable in prices with slow activity by the start of the week. At the end of the week yarn market stroll up & yarn prices wheeled up by 7~10% nearly due to the US dollar hike and its parity effect in Pak rupees cautious activity was seen and buyers hold up further bookings whereas the same sellers not offering prices for as electricity tariffs and bank markups increased causing an increase in the cost of production. Buyers were in an observing state & the raw cotton prices in the Global market are followed by NYCF.
PSF prices were increased by Rs.10/kg dated 2nd Mar 2023 by IFL in the domestic market. 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 now depend on further US dollar where it sets.
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.
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3750 – 3850 | 530 – 545 |
| 20/1 Carded Weaving | 3850 – 3950 | 545 – 560 |
| 30/1 Carded Weaving | 4000 – 4200 | 565 – 595 |
| 30/1 PC Carded Weaving 52:48 | 3120 – 3250 | 440 – 460 |
| 40/1 Combed Compact Weaving | 4600 – 4850 | 650 – 685 |
| 60/1 Combed Compact Weaving | 6200 – 6400 | 875 – 905 |
| 80/1 Combed Compact Weaving | 8300 – 8500 | 1175 – 1200 |
| 40/1 CVC Carded Weaving 60:40 | 3900 – 4000 | 550 – 565 |
Export Yarn Market:
Export yarn market remained under slow business activity. Cotton prices remained firm and stable throughout the week.
Yarn prices behaved otherwise and prices showed increase in domestic market. Export yarn market prices remained firm and stable.
Major reason is appreciation of USD against PKR. This has put prices on higher side and we might see firm prices in same range with minor fluctuations.
Even cotton shipments which are coming in import are of very high prices now after depreciation of PKR against USD 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.
European customers were also active and floated decent numbers of enquiries. However, order confirmations remained limited as they are slowly 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 | 560 – 570 |
| 20/1 Carded Weaving | 570 – 575 |
| 20/1 CM | 605 – 610 |
| 16/1 CM | 600 – 605 |
| 20/2 CD | 590 – 595 |
| 24/2 CD | 615 – 620 |
| 10/1 CARDED SIRO YARN WEAVING | 470 – 495 |
Pakistan Fabric Market:
Current week under review closed with dull & slow activity as limited business reported for both narrow and wider width fabrics.
Local finishers failed to share bulk inquiries in current week for both narrow and wider width fabrics therefore resultantly week closed with dull activity for both narrow and wider width fabrics in the local fabric market. Towards the end of the week weavers stopped their offers due to sudden rise in US dollar rate which created high uncertainty and panic like situation in the market
Currently, weavers are booked in arrow width till 3rd week March’23 and have booked their wider width looms till End March’23 and offer onward deliveries. Whereas weavers have coverage of their special looms till early April’23.
| Construction | Price US$/YD Ex Mill |
| 16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN | 1.50 – 1.52 |
| 20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN | 1.35 – 1.37 |
| 20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN | 1.10 – 1.12 |
Export Fabric Market:
Some of the inquiries were exchanged by Far Eastern customers resultant decent quantities were placed with selected suppliers. The target prices were lower about 6~8% however suppliers managed to accept to extend their sales position.
Asking prices were stable during the week however it went up abnormally towards end of the week when the PKR depreciated about 10% in just two days against USD.
Suppliers held their offers for couple of days due to very uncertain market situation. They may start offering prices from early of week however the PKR against USD is not getting stable.
The weaving units are still going through the tough situation and chasing each and every order.
Suppliers are booked for next 2~3 weeks only and offering onward deliveries.
Flow of inquiries were improved from USA and European markets as good number of inquires are under discussion both in narrow and wider width.
Asking prices were stable during the week however it went up towards end of the week following by PKR against USD depreciation.
European customers are discussing finished fabric inquiries mostly compared to the grey fabric business.
Suppliers are hopeful to get some value added business in days to come.
Wider width suppliers are booked for next 30~40 days and offering onward deliveries.
| 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 | 1.08 – 1.10 |
Bed Linen & Towels:
Home textile business is on slower side due to low activity from worldwide, it is expected that this trend will remain till Mid this year. Overall demand around the globe is on slower side which is affecting business volume in Pakistan and as well as other regions worldwide.
Raw material prices are also increasing due to depreciation of Pakistan Rupee, factories are getting tough time in running factories due to low business volumes.
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. From various sources, we have come to know that there is a spark 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 May 2023 for new incoming requests.
Going Forward:
It is estimated that yarn prices and further business activity were cleared by the upcoming week. Further price fondness will be according to the market and source of distinct yarn counts, leading to the price level.
For coming week, we expect dull activity due to low demand for both narrow & wider width fabrics in local market
Export yarn market remained under nominal business activity with stable price trends. There has been good numbers of enquiries from all regions however, order materialization remained slow.
For export fabric, average business activity was seen during the week. Customers target prices were lower about 6~8% which somehow was managed by the suppliers. Slow demand is expected in days to come as customers are still holding stock.
Garment industry of Pakistan facing challenging situation in term of not getting enough orders to fill the factories capacities.
It is expected that activity in Home textile will remain slow in next quarter of the year, and might improve after June/July 2023.
