Pakistan Cotton Market:
During the last week, activity remained dull buyers were still away from buying. Textile mills were not seen interested in buying cotton during the week, while business remained sluggish despite efforts by ginners to sell their cotton stocks which are around 300k bales.
Local cotton prices remained soft to firm because of slow business activity. 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 increased rs. 600 and reached at the level of rs 19,600 per maund. PSF increased rs.15 in this week and reached at the level of 373 pkr/kgs.
PCGA showed data till March 31, 2023 that Pakistan produced 4,912,069 bales of cotton against 7,441,833 in the 2021-22 season, a year-on-year decline of 2,528,764 bales or 34pc loss. Province-wise, Punjab registered over 32pc year-on-year decline in output as it produced 3,033,050 bales this season against 3,928,690 bales last season. Sindh reported over 46pc year-on-year loss in yield as the lint production in the province this year stood at 1,879,019 bales against 3,513,143 bales last year.
Cotton futures hovered around the 80 cents per pound mark at the beginning of April, not far from an over four-month low of 76.3 cents hit on March 24th as investors weighed relatively stronger US export sales against expectations of demand slowdown due to tighter financial conditions. According to the USDA, global ending stocks in 2022/23 are forecast to rise by more than 2.0 million bales to 91.1 million, mostly due to changes in China. Meanwhile, production over the same period is seen growing to 115.1 million bales from the previous month, attributed to higher output in China, Australia, and Uzbekistan. At the same time, consumption is projected to go down more than 500,000 bales from the previous month on lower demand from major garment producers Pakistan, Turkey, Bangladesh, and Indonesia.
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 17,000 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 0.74~0.85 Lbs. (17,000~20,000/ maund).
|Opening Of the Week||Closing Of the Week||Change|
Crude Oil prices opened at USD 80.42 higher than last week’s closing figures.
This week, crude oil prices showed more or less the same levels with minor fluctuation, on last session closed on the lower side by the end of the week.
On the last day of the week, Crude Oil prices closed at USD 76.16 with a decrease of USD 4.26 cents as of the opening figure of the week.
|Opening of Week||Closing Of Week||Change|
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 1.10 and the British Pound also closed on a positive note with a figure of 1.24 against USD.
|LC 120 Days||273.57||273.52|
New York Cotton Future:
New York Cotton futures opened at a lower level on Monday compared to the previous week’s closing figures.
NYCF showed a downward trend, while it rose in the last session and closed on the upper side by the end of the week.
On the last day of the week, MAY 2023 closed at 83.20 with an increase of 82 points.
On the last day of the week, JUL 2023 closed at 83.47 with an upward of 83 points.
On the last day of the week, OCT 2023 closed at 83.60 with a higher of 62 points.
On the last day of the week, DEC 2023 closed at 83.24 with a surge of 32 points.
Liver Pool Indices:
Liverpool Index A opened at 97.55 a higher level than the previous week’s closing figure.
Index “A” showed a steep fall this week and closed on the lower side by the end of the week.
On the last day of the week, LPI “A” closed at 94.85, decreasing 270 points.
|Opening of the Week||Closing of the Week||Change|
Pakistan Yarn Market:
The local yarn market maintained consistent asking prices and a leisurely business hum towards the conclusion of this week following NYCF and the local cotton market. A sparse set of queries was used to observe the restricted activity. Stocks in mills are under pressure to sell. The customers were in a condition of perception, and the NYCF was monitoring the pricing of raw cotton on the international market.
PSF prices were raised twice this week by IFL in the domestic market, by Rs. 5/kg on April 3 and Rs. 10/kg on April 4. In addition to the impact of US$ parity in Pakistani rupees on fiber imports, PTA and MEG prices continue to be tolerable on the global market. By the end of this week, the price of crude oil was lower. Prices for PSF are anticipated to stay steady or rise slightly the following week.
PV and viscose yarn sales on the trading market in Faisalabad are rare. Business activity in PC/CVC has been measured, and the cash shortfalls and economic depression are still there. Traders were prudent with their holdings, and loom owners were inflexible in their administration of the yarn.
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||3325 – 3480||470 – 490|
|20/1 Carded Weaving||3425 – 3550||485 – 500|
|30/1 Carded Weaving||3700 – 3850||520 – 545|
|30/1 PC Carded Weaving 52:48||2920 – 3100||410 – 435|
|40/1 Combed Compact Weaving||4125 – 4250||580 – 600|
|60/1 Combed Compact Weaving||5900 – 6000||830 – 845|
|80/1 Combed Compact Weaving||8000 – 8200||1130 – 1155|
|40/1 CVC Carded Weaving 60:40||3650 – 3830||515 – 540|
Export Yarn Market:
Export yarn market showed improved business activity as customers floated handsome numbers of inquiries against which order materialization was decent as well. Suppliers kept on offering prices and were showing good interest with flexible tone in presence of firm bids. Generally, prices remained firm and stable in asking but upon receipt of firm bids, supplier showed flexibility to catch orders. On the other hand, buyers were also in active mode and have placed/confirmed good orders with their selected suppliers where they achieved their target prices.
As we have been focusing previously that cost of production has increased huge, another movement from Govt was to increase the labor wages which is another addition in cost of production with immediate effect.
At the moment, suppliers are trying to survive despite tough market conditions and trying their best to drag their losses till maximum time.
Although suppliers are selling on loss and losing hefty amounts but they are forced to place order in export just to secure their imports.
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 under reasonably improved business activity and floated handsome numbers of enquiries against which order materialization was also decent.
European customers showed improved activity this week and good numbers of orders have been placed. Customers floated inquiries for both normal and specialized yarns against which reasonable deals were finalized.
|Count||USD / Bale|
|16/1 Carded Weaving||500 – 505|
|20/1 Carded Weaving||510 – 515|
|20/1 CM||530 – 535|
|16/1 CM||515 – 520|
|20/2 CD||535 – 540|
|24/2 CD||545 – 550|
|10/1 CARDED SIRO YARN WEAVING||450 – 475|
Pakistan Fabric Market:
For another week, the local fabric market remained lackluster and continued its dull trend for both narrow and wider-width fabrics.
Major finishing units and other players remained sideline throughout the week therefore resultantly, limited activity was reported in the market whereas prices remained stable for the narrow and wider width fabrics.
Finishing units continued their policy of placing their maximum orders to their own weaving units.
Currently, weaving mills have booked in narrow width till 3rd week-April’2023 whereas they have coverage of their wider width looms till End-April’2023 and offer onward deliveries.
Dobby looms are covered till 3rd week of May’2023.
|Construction||Price US$/YD Ex Mill|
|16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN||1.34 – 1.36|
|20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN||1.20 – 1.22|
|20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN||1.00 – 1.02|
Export Fabric Market:
Average kind of activity was seen from Far Eastern markets. Suppliers have booked some quantities in China and Bangladesh during the week. Other markets remained almost quiet.
Asking prices were same as of last week.
Suppliers are booked only for next 2~3 weeks and offering onward deliveries.
European and USA buyers have exchanged good number of inquiries however only limited buying was noticed due to slow demand.
Wider width fabric prices remained stable during the week.
Tender business from European customer are still under discussion.
Suppliers for wider width are booked for next 3~4 weeks and offering onward deliveries however dobby looms have good coverage for next two months.
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||1.35 – 1.37|
|20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN||1.21 – 1.23|
|20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN||0.99 – 1.01|
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/May but overall situation will remain on slower side.
Raw material and energy prices are also on higher side, and factories are getting tough time in running the factories.
Overall, the garment industry in Pakistan is likely to continue to play an important role in the country’s economy in the 2nd quarter of 2023, although the industry may face some challenges as it adapts to changing global market conditions. Pakistan’s garment industry has faced a number of challenges, including rising costs, competition from other countries, and changing consumer preferences. However, the industry has also made significant strides in terms of modernization, quality improvement, and sustainability
For new orders factories are offering June onwards deliveries, and also factories are going through a tough phase as they are unable to mange their fix expenses.
Sustainability is crucial in the garment industry to reduce its environmental impact, improve working conditions, meet consumer demand, increase resource efficiency, and future-proof the industry.
According to predictions for the market, local yarn prices are driven by consumer demand and leisurely activities. Following market developments and consumer requests, which will decide the price level, more price adjustments will be made.
Export yarn market remained under decent business activity as customers form all regions remained active and placed handsome quantity orders.
The local cotton market under the influence of international cotton was a bit stable, but the purchase was quite low, due to which there was panic among the ginners. The business has already been slow due to the holy month of Ramadan. Moreover, there is recession in the international market.
For the coming week, we expect slow trend to continue without any major change in local fabric market.
For export fabric, average kind of business was witnessed from Far Eastern, USA and European customers.
The demand is still slow from all sectors. Price were stable and expected to remain same in coming days as well.
Pakistan’s 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.
Overall situation is tough for Home Textile business and this trend seems to extend till June 2023.