Pakistan Cotton Market:
During the last week, activity remained dull. buyers were still away from buying due to the less interest. Spinners are not buying cotton as they are short in yarn orders. On the other hand ginners were interested to sell to minimize their stocks which are around 4 lakh bales.
Local cotton prices remained soft due to silence in market and buyers were not interested in buying.
Price 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 18,700 per maund. PSF remained frim at the level of 355 Pkr/kgs.
There are chances that cotton business might be sluggish during the coming year because of the imposition of taxes by the government, and increase in interest rate. Due to increase in rate of doing business it will be difficult to keep stock of cotton as the cost increases.
The mills will also not stock much and the ginners will also avoid keeping stocks due to which the season will last longer.
On the one hand, L/C problems is there and refunds of billions of rupees are stuck with the government, which is adding to the already existing financial crisis, and on the other hand the complaints of the textile sector are not being heard by the government and the problems of the industry are increasing day by day.
In order to protect the support price of phutti 8500/ maund, if the price in the market falls below the support price, there should be an arrangement of purchasing it as support by govt. So, it should announce purchasing of 5 lac bales through TCP at the beginning of the season in order to stock ginned cotton and to boost farmers’ confidence.
First, there was a crisis in the world markets due to Russia and Ukraine war, now there are reports of the bankruptcy of many American banks and the interest rate is increasing by European banks, due to which the recession is increasing at the global level.
The rate of cotton in Sindh is in between Rs 17,000 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 17,500 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 0.75~0.88 Lbs. (17,000~20,500/ maund).
| Opening Of the Week | Closing Of the Week | Change | |
| Lowest | 75.00 | 75.00 | 0.00 |
| Highest | 88.00 | 88.00 | 0.00 |
Crude Oil:
Crude Oil prices opened at USD 67.64 a higher level than last week’s closing figures.
In this week, crude oil prices showed an upward trend this week and closed with the hike at the end of the week.
On the last day of the week, Crude Oil price closed at USD 69.26 with an increase of USD 1.62 cents as of the opening figure of the week.
| Opening of Week | Closing Of Week | Change | |
| Price | 67.64 | 69.26 | 1.62 |
Exchange Rate:
In the last week values of the Pak, and rupee deprecated against US Dollar, and other major currencies showed mix trend in both interbank and open markets.
At the end of the week, Euro closed on a positive note with a figure of 1.08 and the British Pound also closed on a positive note with a figure 1.22 against USD.
| Selling | Buying | |
| LC Sight | 282.68 | 282.63 |
| LC 120 Days | 270.78 | 270.73 |
| Open Market | 287.19 | 281.01 |
New York Cotton Future:
New York Cotton futures opened lower on Monday than the previous week’s closing figures.
NYCF showed a downward trend during the week and closed with weak note at the end of the week.
On the last day of the week, MAY 2023 closed at 76.54 with a drop of 68 points.
On the last day of the week, JUL 2023 closed at 77.17 with a fall of 53 points.
On the last day of the week, OCT 2023 closed at 78.52 with a loss of 33 points.
On the last day of the week, DEC 2023 closed at 78.40 with reduction of 41 points.
Liver Pool Indices:
Liverpool Index A opened at 93.55 the same level as the previous week’s closing figure.
Index “A” showed a soft trend this week and closed on the lower side.
On the last day of the week, LPI “A” closed at 92.80 with a decrease of 75 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 93.55 | 92.80 | -0.75 |
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. The limited activity was seen with a partial stream of inquiries. Mills have stocks with sale pressure. Customers were in a perceiving state & the raw cotton prices in the Global market are followed by NYCF
PSF prices remained stable in the domestic market during the last week completed. PTA and MEG prices remain tolerant in the international market plus 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 slightly up.
Faisalabad’s trading market has partial sales of PV and Viscose yarns. No demand in PC/CVC has been seen and financial crisis and cash liquidity issues remain. Traders were momentous 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 | 3400 – 3500 | 480 – 495 |
| 20/1 Carded Weaving | 3450 – 3600 | 490 – 510 |
| 30/1 Carded Weaving | 3750 – 3875 | 530 – 550 |
| 30/1 PC Carded Weaving 52:48 | 2940 – 3080 | 415 – 435 |
| 40/1 Combed Compact Weaving | 4125 – 4250 | 585 – 600 |
| 60/1 Combed Compact Weaving | 5900 – 6000 | 835 – 850 |
| 80/1 Combed Compact Weaving | 8000 – 8200 | 1130 – 1160 |
| 40/1 CVC Carded Weaving 60:40 | 3700 – 3840 | 525 – 545 |
Export Yarn Market:
Export yarn market showed good business activity as customers floated handosome numbers of inquiries.
Suppliers showed flexible tone and offered attractive prices to catch orders.
Although Local cotton prices remained firm and stable throughout the week, while international market remained soft.
Yarn prices also continued the sentiment of International market as suppliers want to get orders despite of high cost of productions. Reason being, they are trying to survive despite tough market conditions and trying their best to drag their losses till maximum time.
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.
Chinese customers were the key player during the week as they have again supported market and placed handsome quantity orders. Prices levels are more or less same as last week.
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 finalized.
| Count | USD / Bale |
| 16/1 Carded Weaving | 550 – 555 |
| 20/1 Carded Weaving | 560 – 565 |
| 20/1 CM | 595 – 600 |
| 16/1 CM | 590 – 595 |
| 20/2 CD | 580 – 585 |
| 24/2 CD | 605 – 610 |
| 10/1 CARDED SIRO YARN WEAVING | 450 – 480 |
Pakistan Fabric Market:
In current week under review the local fabric market remained slow and dull activity reported for both narrow and wider width fabrics.
Local fabric market remained stagnant as buyers are not in mood to buy at current level and expecting further downward trend in coming days, Towards the end of the week market closed with limited trading activity for both narrow and wider width fabrics. Fabric prices slightly eased down further due to soft yarn prices in current week.
Currently, weaving mills have booking in narrow width till Mid-April’2023 whereas they have coverage of their wider width looms till 3rd week-April’23 and offer onward deliveries. Dobby looms are covered till end-April ~ mid May.
| Construction | Price US$/YD ExMill |
| 16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN | 1.38 – 1.40 |
| 20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN | 1.24 – 1.26 |
| 20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN | 1.02 – 1.04 |
Export Fabric Market:
Another week went well in term of business activity.
Suppliers have received decent quantity of orders from Korea, China and Japan during the week.
Fabric prices dropped down about 6~8% during last couple of weeks due to soft yarn prices and less business activity in general.
It seems that the current prices are matching with the customer physiological level hence they are placing orders partially.
Few good suppliers have covered their sales till end of April however most of the suppliers have booking only for a week or two thus they are struggling more.
European and USA buyers were active during the week as good number of inquiries were received both in narrow and wider width.
Some tender business are under negotiation with the European customers which expected to finalize in next 1~2 weeks
Wider width prices were remain same as of last week however suppliers are ready to negotiate any reasonable target prices to extend their sales as long as possible
Suppliers for wider with 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 | 1.36 – 1.38 |
| 20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN | 1.22 – 1.24 |
| 20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN | 1.00 – 1.02 |
Bed Linen & Towels:
Home Textiles overall business activity remain slow this week and new business activity is very limited.
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.
There was some new order confirmed during NY Market week meetings but still business situation is on lower side.
Raw material and energy prices are also on higher side, and factories are getting tough time in running the factories.
Garments:
Continuing the same recessionary phase Pakistan’s garment industry is facing a tough time as their production capacities are not fully covered due to a lack of orders from foreign customers. But in the recent past, we have observed that customers have started placing fewer orders along with some future projections, that kept the factories busy in the next quarter. On the other hand, dyeing units were facing a crunch in getting orders but now there is a ray of hope that has arisen.
At the same time, factories in Pakistan are also finding it difficult to meet their fixed costs as units are not fully operational. With all these squeezed demand phases there are few customers who have placed orders for the FW23 season. At the same time, new developments for SS24 are also in discussion. Factories have space to offer deliveries from June 2023 onward for the new inquiries coming in.
Going Forward:
About the upcoming market, it is projected that demand from patrons leads to local yarn prices with unhurried activity. Further price fondness will be according to the demand and supply without considering raw material prices as suppliers are eager to catch orders.
In the domestic cotton market, cotton prices showed an overall firm trend during past week. Spinners showed less interest in buying cotton while ginners continued to try to sell cotton, which led to a drop in cotton prices further.
Yarn market is also under pressure but support form export orders form China and Europe has put spinners in slight comfortable zone. Prices levels are matching customers desired levels and we might decent placements in market in days to come.
For coming week, we expect slow sentiments in Fabric market due to unavailability of bulk orders for both narrow and wider width looms.
Fabric market showed decent booking in Far Eastern, Europe and USA. The current prices are matching physiological level of the buyers and expected that customers will keep on placing orders partially. The prices may remain in same range as it seems that it have touched the bottom level.
Pakistan’s garment industry facing a tough time in 1st quarter of 2023, but as per the current sentiments, there is a ray of hope that customers will start placing decent placements in 2nd quarter of 2023.
Overall situation is tough for Home Textile business and this trend seems to extend till June 2023.
