Market Report- Pakistan 5 June 2023

Pakistan Market Report:

Pakistan Local Cotton Market:
(In the local cotton market, the price of cotton remained stable. Business volume was very low. There are reports that one ginning factory in Punjab has started its operation. In Sindh province also, one ginning factory in Sanghar has started operations partially)

1- Local cotton market showed a little bit of activity after the partial arrival of the new cotton crop however rainy weather kept buyers away from buying as picking of cotton got hurt. It seems that activity will improve in the days to come after the arrival of handsome quantities.
2- Last week, cotton prices in Punjab and Sindh held steady at Rs 18,000 to Rs 21,500 per maund (0.76~0.89 Cents) while Phutti prices ranged from Rs 9,500 to Rs 10,500 per 40kg. KCA remained at Rs 20,000 per maund and PSF down rs. 10 and came at the level of 365 pkr/kgs.
3- As per the details, the situation of cotton crops in Sindh and Punjab is satisfactory. According to the experts, if the weather conditions remain favorable it is expected that cotton production will be around one Crore bales, though, the government had set the target of production of one Crore twenty-seven lac and seventy thousand bales.
4- In the Indian market, trends for polyester, cotton, and viscose yarn are mixed. PC yarn prices have decreased, while polyester spun yarn prices have risen. The cotton trade volume is reduced due to poor weather conditions. Buyers remain cautious due to uncertain market conditions. Industry experts predict a prolonged slowdown in the textile value chain, given that retail garment demand is unlikely to see an increase this year.
5- USA cotton increased by mid of a week, aimed at the passage of the debt ceiling legislation and the start of a new month. Of late, the cotton market has seen a change in dynamics as the managed-money funds have moved from being net short to a net long position. As much as anything, their alternation is being driven by spot July impending options expiration as well as the rapidly closing old crop Season. The one-to-five-day forecast calls for heavy rains across Texas Put pressure on prices.

Local Yarn Market:
(The local yarn market remained stable and firm in asking prices. PSF prices decreased Rs. 10/Kg. It is projected that local yarn market will remain same with limited demand)

1- The local yarn market continued to be stable & firm in asking prices.
2- Most mills have ready deliveries in stretch & course counts, Fine counts available with 10~15 days delivery time. Further, the Gas shutdown in KHI/Sindh is causing a temporary shortage of yarn.
3- PSF prices were decreased by Rs.10/kg dated 29th May 2023 by IFL. For next week it is expected to further decrease slightly.
4- The trading market in Faisalabad is slow in PC/CVC counts and short in viscose yarn whereas PV is good in demand.
5- The market is projected to remain the same & unchanged in terms of prices with limited demand.

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 3500 – 3600 490 – 505
20/1 Carded Weaving 3560 – 3700 500 – 520
30/1 Carded Weaving 3825 – 4000 535 – 560
30/1 PC Carded Weaving 52:48 3000 – 3150 420 – 440
40/1 Combed Compact Weaving 4400 – 4550 620 – 640
60/1 Combed Compact Weaving 6000 – 6200 840 – 870
80/1 Combed Compact Weaving 8100 – 8250 1135 – 1160
40/1 CVC Carded Weaving 60:40 3650 – 3850 510 – 540

Export Yarn Market:
(The export yarn market remained firm and stable with limited business activity. customers showed active stance and shared good numbers of enquiries against which orders materialization was witnessed)

1- The export yarn market showed good business activity as decent numbers of inquiries were received.
2- Customers remained active throughout the week and kept ton checking prices for their required items. They have also furnished bids against which orders were materialized as well.
3- Cotton prices showed upward stability with tendency to increase during the week in both USA and China. This has given support to suppliers and they have also kept their prices firm and stable.
4- It is expected that market will remain firm and stable with good business activity.
5- Good suppliers are booked till end July and offering onward deliveries whereas average suppliers are sold till end June and offering July deliveries.

Export Yarn Prices
Count USD / Bale
16/1 Carded Weaving 525 – 530
20/1 Carded Weaving 435 – 540
20/1 CM 560 – 565
16/1 CM 540 – 545
20/2 CD 560 – 565
24/2 CD 585 – 590

Local Fabric Market:
(Improved business activity was observed in local fabric. Prices slighted increased about 2%. The market will remain same as of current week in demand)

1- The improved activity was witnessed in the local fabric market for both narrow and wider-width fabrics.
2- Local finishing mills started sharing bulk inquiries and also booked orders after tough negotiations therefore week closed with improved trading activity.
3- Fabric prices slightly increased depending on quality and yarn counts
4- Major weaving mills have coverage in narrow width till early July ~ Mid July’2023 whereas, they have booked their wider width looms till the 3rd week of July’2023 ~ End July’2023 and offer onward deliveries.
5- For the coming weeks, we may foresee improved activity for both narrow & wider-width fabrics.

Export Fabric Market:
(Export fabric business was good during the week from Far Eastern markets however European and USA markets were slow)

1- The week started with slow pace of business however it improved towards end of the week. Customers from Korea, China, Japan and Bangladesh have placed decent orders.
2- Asking prices increased about 2% due to increase in yarn prices.
3- Currently suppliers are booked till mid of July and offering onward deliveries.
4- Limited business activity was seen from European and USA buyers during the week both for narrow and wider width.
5- Wider width suppliers have sales coverage till end of July and offering early ~ mid Aug onward deliveries.

Following are the closing rates based on CNF Far Eastern ports.

Local and Export Fabric Prices
Construction Price US$/YD Ex Mill Price US$/YD CNF Far East
16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN 1.31 – 1.33 1.33 – 1.35
20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN 1.19 – 1.21 1.21 – 1.23
20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN 0.96 – 0.98 0.99 – 1.01

Bed Linen and Towel:
(There was less to the medium business activity in Home textile sector. Suppliers are concentrating to European markets as business is improving from Eu. Most of the suppliers are still running 50~60 of their capacity)

1- There was less to the medium business activity we can see and most of it is concentrated in Europe. This improvement in business creates hope for Pakistan textile manufacturers.
2- While certain factories may perform better or worse than this, the average factory is running at between 50 and 60 percent of its capacity.
3- There is a financial crisis in the market that still prevails as a result of poor lifting and business activity, which causes payments to raw material suppliers to be delayed.

(Garment demand is shrinking and it is difficult to meet factory capacity based on the current order intake. Suppliers are very aggressive to catch orders and discussing every single possibility to confirm)

1- Pakistan’s garment industry is going through a difficult period. Many factories have reduced their production capacity in the 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.
2- In general, it has been observed that many major retailers and brands have not participated in building large placements like in previous seasons.
3- On the other hand, factories have started receiving bulk orders for SS24 from different brands and are busy in their execution, and going forward, they have received FW24 Development for next season, which bodes well for Pakistan’s textile industry. The factories are booked until End July and offering delivery afterward.

Crude Oil:

1- Crude Oil prices opened at USD 72.67 the same level as last week’s closing figures.
2- This week, crude oil prices dropped in the subsequent two sessions, later showing an upward trend till closing but closing on the lower side.
3- On the last day of the week, Crude Oil price closed at USD 71.74 with a decrease of USD 0.93 cents as of the opening figure of the week

Opening of Week Closing Of Week Change
Price 72.67 71.74 -0.93

Exchange Rate:

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 the figure of 1.07 and the British pound also closed on a negative note with a figure of 1.24 against USD.

Selling Buying
LC Sight 284.93 284.88
LC 120 Days 274.82 274.77
Open Market 288.61 282.40

New York Cotton Future:

1- New York Cotton futures opened at a lower level on Monday as compared to the previous week’s closing figures.
2- NYCF showed a downward trend this week, hence took a jump in 2nd last session and closed on the positive side.
3- On the last day of the week, JUL 2023 closed at 86.05 with an increase of 206 points.
4- On the last day of the week, OCT 2023 closed at 82.82 with an upward of 191 points.
5- On the last day of the week, DEC 2023 closed at 81.85 with a higher of 164 points.

Liver Pool Indices:

1- Liverpool Index A was opened at 90.65 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- On the last day of the week, LPI “A” closed at 96.65 with an increase of 600 points.

Opening of the Week Closing of the Week Change
Index A 90.65 93.75 3.10


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