Pakistan Local Cotton Market:
Previous week saw an overall stability in the rate of cotton. Business volume; however, remained extremely low. Positive measures are needed to increase cotton cultivation; however, at present the situation of cotton sowing is satisfactory. International cotton and other commodities showed upward trend after announcements of FED and bank news.
1- Lack luster business activity was seen throughout the week, prices remained stagnant without changes. Buyers are waiting for new cotton crop in expectation that price may reduce. Cotton from lower Sindh side arrival has been started partially.
2- In Cotton producing areas, currently the cotton sowing is said to be satisfactory. if the weather conditions remained favorable, the cotton production is expected to increase. cotton has so far been cultivated on more than 3.663 million acres which is 80 percent of the target set at five million acres in last year.
3- Last week, cotton prices in Punjab and Sindh held steady at Rs 18,000 to Rs 21,000 per maund(0.77~0.90 Cents) while Phutti prices ranged from Rs 8,500 to Rs 9,000 per 40kg. KCA remained at Rs 20,000 per maund and PSF remained the same at 375 pkr/kgs.
4- India is experiencing sluggish demand in its cotton yarn market, which could lead to a reduction in production by mills to prevent stock accumulation. Despite stable prices, market sentiments remain weak due to tepid demand from the weaving and garment industry.
5- China’s manufacturing output has seen a significant surge, increasing by 6.5 per cent year-on-year (YoY) in April 2023, according to the National Bureau of Statistics (NBS). Additionally, the value-added industrial output, a key economic metric, rose by 5.6 per cent during the same period, marking a growth rate 1.7 percentage points higher than March’s figure.
Local Yarn Market:
Local yarn market remained stable and expected to remain stable in terms of prices with limited inquiries.
1- The local yarn market remained stable in asking prices.
2- Most mills have immediate delivery, and some specific counts can begin within a week.
3- PSF prices continued stable in the domestic market and are expected to remain stable.
4- The trading market in Faisalabad experiences mediocre cotton counts of demand and good PV counts of demand.
5- The market is expected to remain the same in terms of prices with limited inquiry.
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||3450 – 3600||485 – 505|
|20/1 Carded Weaving||3550 – 3700||500 – 520|
|30/1 Carded Weaving||3800 – 4000||535 – 560|
|30/1 PC Carded Weaving 52:48||3050 – 3200||430 – 450|
|40/1 Combed Compact Weaving||4350 – 4500||610 – 630|
|60/1 Combed Compact Weaving||5900 – 6200||825 – 870|
|80/1 Combed Compact Weaving||8000 – 8250||1120 – 1155|
|40/1 CVC Carded Weaving 60:40||3720 – 3950||520 – 555|
Export Yarn Market:
Export Yarn market remained under lackluster business activity. customers remained on side line and kept on watching market. Supplier remained firm and stable due to good booking position and upward cotton prices.
1- The export yarn market showed nominal business activity as customers remained in market with limited demand.
2- Customers have floated handsome numbers of enquiries against which order materialization was slow.
3- Cotton prices showed upward sentiment during the week in both USA and CHINA. This has given boost to the prices of yarn and all suppliers have increased their prices.
4- However, as customers have booked handsome quantities in last couple of weeks, so, customers showed intrest in buying on only last booked prices.
5- Sales position of suppliers is good. Good quality suppliers are sold till mid July and offering onward deliveries whereas average quality suppliers have sold June and offering July shipments.
6- It is expected that market will remain firm and stable with good business activity.
|Export Yarn Prices|
Local Fabric Market:
For coming weeks, we may expect slight improved activity for both narrow & wider-width fabrics in domestic market.
1- The local fabric market remained dull throughout the week with firm price trend for both narrow and wider-width fabrics.
2- Local finishers shared most of the inquiries for price checking however limited business activity was seen towards end of the week.
3- Fabric prices either remained firm or slightly increased depending on quality and yarn counts
4- Currently major weaving mills are booked in narrow width till Mid-June~20th June’2023 and they have coverage of their wider width looms till End-June ~ early July’2023 and offer onward deliveries.
5- For coming weeks, we may expect slight improved activity for both narrow & wider-width fabrics.
Export Fabric Market:
Export fabric for narrow width remained in active during last couple of weeks. Wider width business was good and suppliers have extended their deliveries till end of July.
1- Export fabric for narrow width is going through in difficult situation. Customers from Asia, Far East are not taking into fresh buying.
2- Suppliers are chasing their customers but no positive response due to slow demand in general.
3- Asking prices were stable without any major change.
4- Suppliers are booked till mid of June and offering onward deliveries.
5- Wider with suppliers have somehow managed to get orders from their USA and European buyers.
6- Suppliers have further extended their sales till mid of July ~ end of July and offering onward deliveries.
Following are the closing rates based on CNF Far Easter ports:
|Local and Export Fabric Prices|
Bed Linen and Towel:
Home textile business activity is on the slower side due to low activity worldwide. It seems this trend will continue till June/July. European customers have placed orders in Institutional textiles.
1- Business activity is on the slower side due to low activity worldwide. It seems this trend will continue till June/July.
2- There are some orders placed from Europe in Institutional Textiles but on the other side, raw material prices were unstable due to the recent political situation in the country.
3- Overall factories are running 50-60% on average as some have a higher or lower business than this average.
4- Due to slow lifting of ready goods and slow business activity, there is a financial crunch in the market due to which payments of vendors raw material are struck.
Pakistan’s garment sector is facing a difficult scenario due to a lack of orders. Increasing cost of production is putting industry into more difficult position.
1- Overall, Pakistan’s garment sector is expected to continue to play a vital part in the country’s economy, despite some obstacles as it adapts to changing global market conditions.
2- Rising costs, competition from other regions, and changing consumer preferences have all posed obstacles to Pakistan’s garment industry. However, the industry has made considerable advances in modernization, quality enhancement, and sustainability.
3- For new orders, factories are offering Mid-July 23 onwards deliveries.
1- Crude oil prices opened at usd 71.11, higher than last week’s closing figures.
2- This week, crude oil prices showed mix trend and closed on the upper side by the end of the week.
3- On the last day of the week, crude oil prices closed at usd 71.55 with an increase of usd 0.44 cents as of the opening figure of the week.
|Opening of Week||Closing Of Week||Change|
1- Last week values of the pak rupee deprecated against us dollar, and other significant currencies showed mix trend in both interbank and open markets.
2- At the end of the week, euro closed on a negative note with a figure of 1.09; the british pound also closed on a negative note with a figure of 1.25 against usd.
|LC 120 Days||275.34||275.29|
New York Cotton Future:
1- New York Cotton futures opened at a higher level on Monday as compared to the previous week’s closing figures.
2- NYCF showed an upward trend this week and closed on the positive side by the end of the week.
3- On the last day of the week, JUL 2023 closed at 86.72 with an increase of 435 points.
4- On the last day of the week, OCT 2023 closed at 84.83 with an upward of 230 points.
5- On the last day of the week, DEC 2023 closed at 83.89 with a higher of 211 points.
Liver Pool Indices:
1- Liverpool Index A opened at 91.85 on the lower side of the previous week of closing figure.
2- In this week Index “A” showed an upward tendency and closed on the positive side by the end of the week.
3- At the last day of the week, LPI “A” closed at 97.50 with an increase of 565 points..
|Opening of the Week||Closing of the Week||Change|