Pakistan Cotton Market:
During the last week, cotton prices were overall bearish during the last week. Spinners are buying cotton very cautiously due to the upheaval in the textile sector while ginners are interested in selling. Business volume was very limited.
Local cotton prices remained soft due to the silence in market and buyers were not interested in buying . 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.300 and reached at the level of rs 19,500 per maund. PSF remained frim at the level of 355 pkr/kgs.
Decline in cotton prices particularly in international cotton market resulted in a significant decline in cotton prices locally. Recession in textile sector is increasing day by day coupled with a continued declining trend in exports of textile products. In the domestic cotton market, cotton prices were overall bearish. Spinners are buying cotton very cautiously due to the upheaval in the textile sector while ginners are interested in selling. Business volume was very limited. The ginners have stock of about four lac bales of cotton but they are worried due to less buying. The cost of stock is increasing and if the heat intensity increases, the weight will also start coming down whereas business activity would further slow down in the month of Ramadan. 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.
Prime Minister Shehbaz Sharif has accorded in-principle approval to set the price of cotton at 8500 rupees per 40 kilogram for this year. The approval was granted during a review meeting of the Agricultural Task Force that was held in Lahore on Monday with Prime Minister Muhammad Shehbaz Sharif in the chair.
Textile industry of Pakistan is facing decrease in exports for the fifth consecutive month because of the effects of the domestic economic crisis, as well as, the global economic slowdown. 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 had been the lowest since May 2021, when overseas shipments came in at $1.05 billion.
The latest U.S. Department of Agriculture (USDA) cotton projections for 2022/23 (August–July) indicate a 5-million-bale (6 percent) increase in global ending stocks—compared with 2021/22—as mill use falls below production. World cotton stocks are projected at 91.1 million bales, the second highest since 2015/16 (figure 1). Stocks are forecast larger in most of the major producing countries, with Pakistan and Australia the exceptions. China—the largest stockholder—is forecast to account for 39.4 million bales, or 43 percent of the 2022/23 total, while Brazil and India contribute a combined 27 percent. Global cotton production is forecast slightly lower at 115.1 million bales in 2022/23, the result of decreased harvested area. World cotton mill use is projected 6.2 million bales (5.3 percent) lower at
110.1 million bales, as high clothing inventories depress importers’ orders. World cotton trade is forecast at 39.6 million bales, the lowest since 2016/17.
Two of the top three exporters, the United States and India, account for most of the decline. Meanwhile, cotton prices are forecast to decline from the remarkably elevated levels of 2021/22, as the stocks-to-use ratio climbs to its highest level (83 percent) in 3 years.
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|
Crude Oil prices opened at USD 74.80 a lower note than last week’s closing figures.
in this week, crude oil price showed a downward trend in this week and closed on lower side by the end of week.
On the last day of the week, Crude Oil price closed at USD 66.74 with a decrease of USD 8.06 cents as of the opening figure of week.
|Opening of Week||Closing Of Week||Change|
New York Cotton futures opened higher on Monday than the previous week’s closing figures.
Afterwards, NYCF showed a downward trend during the week and closed on the weak side by the end of the week.
On the last day of the week, MAY 2023 closed at 77.83, showing drop of 335 points.
JUL 2023 closed at 78.44 with a downward of 321 points.
OCT 2023 closed at 79.56 with a lower note of 248 points.
On the last day of the week, DEC 2023 closed at 79.51 with reduce of 275 points.
Liver Pool Indices:
Liverpool Index A opened at 96.55 the same level as the previous week’s closing figure.
Index “A” showed a downward trend in this week and closed with decline by the end of the week.
At the last day of the week, LPI “A” closed at 93.55 with a decrease of 300 points.
|Opening of the Week||Closing of the Week||Change|
Pakistan Yarn Market:
The Local yarn market continued unhurried slow in demand & soft 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 productions & other overheads. Mills have stocks with sale pressure. Buyers were in a perceiving 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 compassionate in the international market plus the increase of the US $ parity effect in Pak rupees on importing fiber. At the same time, crude oil prices are upward by the end of this week. For next week, PSF prices are expected to remain stable.
The Faisalabad trading market was slothful and inadequate 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 considerate. 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||3550 – 3600||505 – 510|
|20/1 Carded Weaving||3600 – 3700||510 – 525|
|30/1 Carded Weaving||3775 – 3900||535 – 555|
|30/1 PC Carded Weaving 52:48||2950 – 3100||420 – 440|
|40/1 Combed Compact Weaving||4250 – 4350||605 – 620|
|60/1 Combed Compact Weaving||5900 – 6000||840 – 855|
|80/1 Combed Compact Weaving||8000 – 8200||1140 – 1165|
|40/1 CVC Carded Weaving 60:40||3720 – 3850||530 – 550|
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 remained soft and suppliers were willing to grab order in presence of firm buds.
Appreciation of USD against PKR was another motivation for suppliers to place orders in export. Although suppliers are selling on loss and losing hefty amounts but they are forced to place order in export just to secure their imports.
Import of cotton still not feasible, importers are facing huge loss in imported cotton due to depreciation of Pak Rupee and soft market sentiment.
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 showed improved activity this week and good numbers of orders have been placed. Customers floated enquiries for both normal and specialized yarns against which reasonable deals were closed
|Count||USD / Bale|
|16/1 Carded Weaving||555 – 560|
|20/1 Carded Weaving||565 – 570|
|20/1 CM||600 – 605|
|16/1 CM||595 – 600|
|20/2 CD||585 – 590|
|24/2 CD||610 – 615|
|10/1 CARDED SIRO YARN WEAVING||455 – 480|
Pakistan Fabric Market:
The local fabric market showed slow and dull activity for both narrow and wider width fabrics in current week under review.
Local buyers and finishers are not showing interest in buying at current level and expecting further downward trend in coming days, resultantly current week closed with limited trading activity for both narrow and wider width fabrics. Fabric prices are eased down in current week by approx. 1~2% due to downward trend in yarn market.
Currently, major weavers are booked in narrow width till early April’23~ Mid-April’2023 whereas they have coverage of their wider width looms till Md-April’23 and offer onward deliveries. Whereas weavers have coverage of their special looms till 3rd week-April’23.
|Construction||Price US$/YD Ex Mill|
|16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN||1.45 – 1.47|
|20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN||1.31 – 1.33|
|20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN||1.05 – 1.07|
Export Fabric Market:
This week an improved business activity was seen from Far Eastern customers.
Suppliers have received good number of inquiries resultant bulk order placements with selected suppliers.
The asking prices were soft due to soft raw material prices as well slow business since last couple of months.
The prices were reduced about 3~4% during the week which customers took advantage.
Good suppliers are booked for next 30~40 days whereas average suppliers have booking for next two weeks hence they are struggling more to get orders
Healthy business was noticed from European and USA buyers as customers have placed decent quantities both in narrow and wider width
Prices remained soft for wider width due to soft yarn prices.
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||1.46 – 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|
Bed Linen & Towels:
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 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 around the globe which supply Home Textile products.
Raw material and energy prices are also on higher side, and factories are getting tough time in running the factories.
Overall Pakistan’s garment industry is facing uneven business activity, where factories are not getting enough orders to fill their 100% production capacities. Due to inflation, it has been observed many retailers and brands have reduced their demands. Some orders were placed by buyers but with small quantities instead of bulk buying as they did previously.
However, the good part is customers keep placing new developments of SS24 that raise a ray of rope in future business. For new inquiries, factories are offering End May 23 and onward deliveries. Fluctuation of raw material prices is constant that effect apparel prices
Dullness prevailed in the local cotton market , prices were remained soft as buyers were away from buying. Ginners are in panic to release their stocks available with them. It seems that prices will remained soft due to the less business activity. As textile goods demand is not increasing worldwide.
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.
For coming week, In the absence of bulk inquiries of fabric in domestic market, we expect slow and dull sentiments for both narrow and wider width looms
For export fabric, order placements were good from Far East, Europe and USA both in narrow and wider width. Prices were soft about 3~4% during the week. Improved business activity is expected in coming days as well.
Having fewer orders from global customers put Pakistan’s garment factories under pressure.
As past 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 2 of 2023.