Pakistan Local Cotton Market:
(In the local cotton market, the price of cotton remained stable and business volume remained good. 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. it seems that activity will remain good)
1- Local cotton market showed good activity, buyers were interested in buying of the new crop. It seems that activity will improve in the days to come after arrival of handsome quantities.
2- Last week, cotton prices in Punjab and Sindh held steady at Rs 18,500 to Rs 21,200 per maund (0.79~0.89 Cents) while Phutti prices ranged from Rs 9,500 to Rs 10,500 per 40kg. KCA increased Rs 500 to up at Rs 20,500 per maund and PSF down Rs.10 and came at the level of 355 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 and 20 lakh bales, based on the sowing area in Pakistan.
4- The 2023/24 U.S. cotton projections, compared to last month, show lower beginning stocks but higher production, exports, and ending stocks. Projected abandonment in the Southwest has been reduced due to recent favorable rainfall, resulting in a production increase of 1.0 million bales to 16.5 million. Overall U.S. abandonment is now projected at 16%, which would be less than half its 2022/23 level and close to the long-run average. Exports are 500,000 bales higher, at 14.0 million, as both projected U.S. supplies and world trade are higher this month.
Local Yarn Market:
(The local yarn market continued to be stable & firm in asking prices. The market is expected to remain the same with limited demand)
1- The local yarn market continued to be stable & firm in asking prices.
2- Most mills offer stretch and course counts that are ready to go and delivery times of 10 to 15 days for fine-count orders. Further, the gas outage in KHI/Sindh has caused a temporary yarn scarcity.
3- PSF prices were decreased by Rs.10/kg dated 5th June 2023 by IFL. For next week it is expected to remain stable.
4- The Faisalabad market sees steady sales and slow demand.
5- The market is expected to remain the same and unchanged in terms of prices. With limited demand and vulnerable to the US Dollar and domestic budget.
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 | 3475 – 3550 | 485 – 495 |
| 20/1 Carded Weaving | 3500 – 3650 | 490 – 510 |
| 30/1 Carded Weaving | 3750 – 3950 | 525 – 555 |
| 30/1 PC Carded Weaving 52:48 | 2900 – 3080 | 405 – 430 |
| 40/1 Combed Compact Weaving | 4400 – 4550 | 615 – 635 |
| 60/1 Combed Compact Weaving | 6000 – 6200 | 840 – 865 |
| 80/1 Combed Compact Weaving | 8100 – 8250 | 1135 – 1155 |
| 40/1 CVC Carded Weaving 60:40 | 3550 – 3700 | 495 – 520 |
Export Yarn Market:
(The export yarn market remained stable with limited business activity. there has been decent number of enquiries form customer and orders are under negotiation. So, we might expect order placements in days to come)
1- The export yarn market remained firm and stable with limited business activity in terms of order confirmations. Customers are in active mode and floating good numbers of enquiries which is a good sign.
2- We might see handsome numbers of orders to be placed in coming couple of weeks. It is also expected that price will also show slight improvement in days to come .
3- Cotton prices showed 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- Good suppliers are booked till Early August and offering onward deliveries whereas average suppliers are sold till Mid July and offering onward deliveries.
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Local Fabric Market:
(Local fabric sentiments were slow. Major customers remained sideline. Prices remained firm for both narrow and wider width fabric)
1- Slow sentiment gripped the local fabric market in the current week under review for both narrow and wider-width fabrics.
2- Major local buyers remained sidelined throughout the week and shared limited inquiries resultantly market remained dull with limited orders confirmation for both narrow and wider-width fabrics.
3- Fabric prices remained firm owing to the unavailability of bulk orders.
4- Major suppliers covered their narrow width till Mid-July’2023 whereas, they have coverage of their wider width looms till End July’2023 and offer onward deliveries.
5- For the coming weeks, we may foresee slow sentiments for both narrow & wider-width fabrics.
Export Fabric Market:
(Limited business activity was witnessed from Far Eastern customers. Prices remained stable. European and USA buyers remained slow)
1- Limited business activity was witnessed from Far Eastern customers. Prices remained stable due to stable raw material prices.
2- Some suppliers have accepted low price orders from Bangladesh customers.
3- Suppliers are booked till mid of July and offering end July onward deliveries.
4- European customers have exchanged limited inquiries resultant limited order booking with selected suppliers both in narrow and wider width.
5- Wider width suppliers are in comfortable position and offering mid ~ end Aug deliveries.
6- USA market was also slow during the week.
| Local and Export Fabric Prices | ||||||||||||
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Bed Linen and Towel:
(Home Textile business was consistently less. The European and USA markets were quite. The factories are running about 50~60% of their capacity)
1- There was consistently less business in the market. The Asian manufacturers are diverting their attention to domestic home textile products. The European, UK, and USA markets are nearly quite the whole weak with very less flow of inquiries.
2- The factories are 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.
4- There are hopes that in July the some business activity will be seen from the European region before going on holidays.
Garments:
(Garment demand is declining, and meeting manufacturing capacity based on current order intake is problematic. Suppliers are aggressive in capturing orders and discussing every possible way to confirm)
1- Many countries have seen a drop in garment demand as people cut back on spending owing to economic uncertainties.
2- Pakistan’s garment sector received very few orders from international customers in terms of order placements.
3- Normally, factories receive projection-based orders from large retailers, but there has been a slow sentiment in the market in 2nd quarter of 2023, one of the reasons being global inflation.
4- At the same time, factories anticipate BULK ORDERS against the developments they made in 1st quarter of 2023. Factories are offering End Aug / early Sep.
5- In the garment industry, sustainability is critical for reducing environmental impact, improving working conditions, meeting customer demand, increasing resource efficiency, and future-proofing the industry.
Crude Oil:
1- Crude Oil prices opened at USD 72.15 a higher level than last week’s closing figures.
2- In this week, crude oil prices showed mix trend and closed on the lower side.
3- On the last day of the week, Crude Oil price closed at USD 70.17 with a decrease of USD 1.98 cents as of the opening figure of the week.
| Opening of Week | Closing Of Week | Change | |
| Price | 72.15 | 70.17 | -1.98 |
Exchange Rate:
1- In the last week values of the Pak rupee deprecated against US Dollar’s, other major 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 1.07 and the British Pound closed on a positive note with a figure 1.25 against USD,
| Selling | Buying | |
| LC Sight | 285.95 | 285.90 |
| LC 120 Days | 274.96 | 274.91 |
| Open Market | 290.22 | 283.98 |
New York Cotton Future:
1- New York Cotton futures opened with lower levels on Monday than last week’s closing figures.
2- NYCF showed mix trend this week and closed on the positive side.
3- On the last day of the week, JUL 2023 closed at 84.04 with a decrease of 75 points.
4- On the last day of the week, OCT 2023 closed at 83.85 with an upward of 143 points.
5- On the last day of the week, DEC 2023 closed at 81.82 with a higher of 40 points.
Liver Pool Indices:
1- Liverpool Index A opened at 96.65 on the same level as last week’s closing figure.
2- In this week Index “A” showed a downward tendency and was close to the opposing side.
3- On the last day of the week, LPI “A” closed at 94.15 with a decrease of 250 points..
| Opening of the Week | Closing of the Week | Change | |
| Index A | 96.65 | 94.15 | -2.50 |
