Pakistan Cotton Market:
During the last week, In the domestic cotton market prices remained soft with dull business activity. Currency is not stabilizing due to that uncertainty in the market is prevailing. Spinners and buyers are still confused as have no direction of market. National and internationally circumstances are not in favor of the spinners.
Local cotton prices remained soft to firm . The rate of cotton was Rs 17,500 to Rs 20,500 per maund. The price of Phutti is in between Rs 7,000 and 9,000 per 40 kg. KCA dropped rs. 200 and reached at the level of rs 19,800 per maund. PSF remained frim at the level of 355 pkr/kgs.
An alarming drop of 2.5 million bales (34.39%) is expected in local production of cotton. However, the price of cotton remained stable under the influence of rising dollar. However, due to the extremely high rate of the dollar, the exports of textiles, etc., will increase, while on the other hand, the prices of imported raw materials, accessories, etc., and inputs will also increase enormously.
Cotton demand and prices are expected to rise in the domestic cotton market, but cotton stocks in the domestic market are very low while delivery of imported cotton is delayed due to L/C issues and due to sharp rise in dollar prices. Due to this, the value of imported cotton will increase.
The total production of cotton this year is expected to be around 50 lac bales which is twenty five lac sixty thousand and six hundred and eleven bales less than the production of seventy four lac and forty thousand and eight hundred and thirty three bales during the same period last year.
Pakistan’s textile industry has continued to suffer from the effects of domestic economic meltdown as well as global economic slowdown as its exports dropped for the fifth consecutive month. According to latest data, textile exports fell more than expected by 28.1% year-on- year (YoY) and 9.1% month-on-month, reaching $1.20 billion in February 2023.
Exports were the lowest since May 2021, when overseas shipments came in at $1.05 billion. Explaining the reasons, Abbas cited the restrictions on imports, high interest rates and an overall slowdown in the global economy. Although, this is not just happening in Pakistan, many other countries such as Bangladesh and Vietnam are also facing a similar situation. The Covid-19 pandemic has had a significant impact on global economies, and the textile industry is no exception and restrictions on imports also caused shortage of raw material, which affected production activities at the textile industry. Exporters have often complained about stiff competition from other countries, particularly Bangladesh and Vietnam, which have been able to win more orders owing to a relatively low cost of production and better infrastructure. Meanwhile, Pakistan’s cotton production dropped by 34.5% in February, which reflected the impact of last year’s floods. In this scenario, a threat is looming over the textile industry, which requires around 14 million cotton bales annually. Large-scale spinners had booked big orders when cotton prices were at peak, but prices dropped 20-25% by the time shipments arrived, coinciding with a deep recession in the global market. Exports have continued to fall for seven consecutive months from August 2022 to February 2023. Latest statistics showed that Pakistan’s exports fell by 18.67% YoY to $2.31 billion in February 2023.
The rate of cotton in Sindh is in between Rs 17,500 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 18,000 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 0.77~0.90 Lbs. (17,500~20,500/ maund).
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 75.00 | 77.00 | 2.00 |
| Highest | 90.00 | 90.00 | 0.00 |
Crude Oil:
Crude Oil prices opened at USD 80.46 with higher level as compared to last week closing figures.
In this week, crude oil price showed downward trend in this week and closed on lower side by the end of week.
In last day of the week, Crude Oil price closed at USD 76.68 with decrease of USD 3.78 cents as of opening figure of week.
| Opening of Week | Closing Of Week | Change | |
| Price | 80.46 | 76.68 | -3.78 |
Exchange Rate:
In last week values of Pak rupee fluctuated 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 negative note with figure 1.20 against USD.
| Selling | Buying | |
| LC Sight | 280.46 | 280.41 |
| LC 120 Days | 268.73 | 268.68 |
| Open Market | 285.27 | 279.13 |
New York Cotton Future:
New York Cotton futures opened with higher level on Monday as compare to previous week’s closing figures.
NYCF showed downward 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 78.18 with drop of 653 points.
On the last day of the week, JUL 2023 closed at 78.98 with slash of 646 points.
On the last day of the week, OCT 2023 closed at 81.34 with slide of 406 points.
On the last day of the week, DEC 2023 closed at 80.27 with reduce of 487 points.
Liver Pool Indices:
Liverpool Index A opened at 98.40 with a lower level of the previous week closing figure.
In this week Index “A” rose in next two sessions later dropped till closing in this week and closed on lower side by end of week.
At last day of the week, LPI “A” closed at 96.55 with a decrease of 185 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 98.40 | 96.95 | -1.45 |
Pakistan Yarn Market:
The local yarn market continued steadily in asking prices with slow business activity by the end of this week following NYCF and the local cotton market. Fractional inquiries were received from clientele with not as much of a yarn mandate. Spinning mills had nominal stocks with sale pressure as rates and bids were a major challenge for them due to the high cost of production and cash flow problems. Buyers were in a spotting state & the raw cotton prices in the Global market are followed by NYCF
PSF prices continued 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 remain stable.
The Faisalabad trading market was inactive and limited business was seen. The yarn was not as much in demand and had no extensive sales of PV and Viscose yarns. The cash flow system remains thoughtful. At the same time, Traders were embraced with their stocks.
It is appraised that mandate from end customers leads to local yarn prices in the future market. Further price liking will depend on the market and source of unrelated yarn counts, leading to the price level.
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 | 515 – 520 |
| 20/1 Carded Weaving | 3650 – 3750 | 520 – 535 |
| 30/1 Carded Weaving | 3800 – 4000 | 540 – 570 |
| 30/1 PC Carded Weaving 52:48 | 3000 – 3150 | 430 – 450 |
| 40/1 Combed Compact Weaving | 4450 – 4600 | 635 – 655 |
| 60/1 Combed Compact Weaving | 6000 – 6200 | 855 – 885 |
| 80/1 Combed Compact Weaving | 8100 – 8350 | 1155 – 1190 |
| 40/1 CVC Carded Weaving 60:40 | 3750 – 3950 | 535 – 565 |
Export Yarn Market:
Export yarn market couldn’t take momentum and remained under pressure , business activity remained dull.
Local cotton prices remained firm and stable throughout the week, while international market dropped a lot.
Yarn prices were soft in domestic market as well. Export yarn market prices also showed slight softness in presence of firm bids.
Appreciation of USD against PKR put the prices on higher side, while may be helpful for the export market. Exporters can take advantage but cost of production increased a much its also a big problem.
Import of cotton still not feasible, importers are facing lot of loss in imported cotton , depreciation of currency caused a heavy losses for 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.
European customers remained on sidelines, hence they kept checking the prices. However, order confirmations remained limited as they slowly gradually accepted the increase in prices. So, we might see orders to be confirmed in the month of March.
| Count | USD / Bale |
| 16/1 Carded Weaving | 560 – 565 |
| 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:
In current week under review the local fabric market once again remained dull & slow for both narrow and wider width fabrics.
Local buyers and finishers remained sideline and are not showing any interest in buying at current level for both narrow and wider width fabrics. Resultantly current week closed with dull activity for both narrow and wider width fabrics.
Currently, weavers are booked in narrow width till end March’23 and have booked their wider width looms till Early April’23 and offer onward deliveries. Whereas weavers have coverage of their special looms till mid-April’23.
| Construction | Price US$/YD Ex Mill |
| 16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN | 1.46 – 1.48 |
| 20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN | 1.32 – 1.34 |
| 20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN | 1.06 – 1.08 |
Export Fabric Market:
Far Eastern customers kept on checking prices during the week and booked small quantity of orders only.
Suppliers are chasing customers to get bulk orders but there is no such demand.
Asking prices remained same as of last week due to stable raw material prices.
Only few good suppliers are booked till end of April otherwise majority of the suppliers have booking in hand for next 2~3 weeks only and offering onward deliveries.
European and USA customers have exchanged both narrow and wider width inquiries resultant decent booking during the week.
There is no change in asking prices.
Suppliers are chasing each and every inquiry due to slow demand in general.
Wider width suppliers are booked till end of April and offering onward deliveries.
Following are 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 | 1.08 – 1.10 |
Bed Linen & Towels:
Home Textiles overall business activity is on slower side as there are new business placements in the market but volume is very low. It is projected that this trend will continue till June and expecting some improvement after June 2023.
Overall demand is on slower side around the globe which is affecting business volume in Pakistan and as well as other regions around the globe which supply Home Textile products.
There is a hope that factories will get some new placements during NY Market week.
Garments:
Pakistan’s garment industry is going through a difficult period, with many factories having reduced production capacity in absence of orders. Normally factories have future predictions but unfortunately in the current scenario things have changed and they don’t have many projections to fill the factory capacity
In general, it has been observed that many major retailers and brands have not participated in building large placements like in previous seasons, according to various sources, the only reason for this is global inflation and lack of demand. The prices for raw materials, dyes, and cotton fluctuate.
On the other hand, factories have already received bulk orders for FW23 from different brands and are busy in their execution, and going forward, they have received SS24 Development for next season, which bodes well for Pakistan’s textile industry. The factories are booked until May 23 and offering delivery afterward.
Going Forward:
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. It seems that prices will remain soft due to the less business activity. As textile goods demand is not increasing worldwide.
For coming weeks, we expect the local fabric market to remain slow with limited trading activity for both narrow and wider width fabrics.
Export yarn market remained under nominal business activity with soft price trends. There has been good numbers of enquiries from all regions however, order materialization remained slow.
Flow of inquiry improved in export fabric sector and business materialization was also observed during the week which is healthy sign however there are no bulk orders in the market at the moment. This situation may remain for next couple of weeks.
Overall garment industry going through tough phase but there is ray of hope incurred that can put good impact in end of 2nd quarter of 2023.
Home textile market is expected that this slow trend will be continued till Quarter 2 of 2023, and business activity will improve after June/July 2023.
