Pakistan Local Cotton Market:
(Local cotton market remained good, buyers are showing interest in buying in the expectation that import will not be viable so far due to unstable local currency)
1- Local cotton market showed good activity, buyers were interested in buying of the new crop. The supply of Phuti is increasing day by day, as the cotton crop is satisfactory. It seems that activity will improve in the days to come after the arrival of handsome quantities. Import seems difficult to buyers due to multiple issues. Therefore, they will prefer to buy local cotton.
2- Last week, cotton prices in Punjab and Sindh showed slight soft, the range was in between Rs 19,500 to Rs 20,500 per maund (0.83~0.87 Cents) while Phutti prices ranged from Rs 9,500 to Rs 10,500 per 40kg. KCA dropped Rs. 600 to down at Rs 19,900 per maund and PSF remained the same at the level of 355 pkr/kgs.
3- Import contracts of 60 lac bales of cotton worth 2 billion dollars have already been made. If the average price of imported cotton is calculated at 95 US cents, the total value is about two billion US dollars. The worth of cotton imported from the USA is more than one billion US dollars. Funds of only Rs 147 million have been allocated in the budget for better production of cotton.
4- Meanwhile, at present cotton sowing in the country has been completed on 2.588 million hectares against the target of 2.767 million hectares for the crop season 2023-24 to meet the industrial and commercial needs of the industry, as well as, for exports.
5- USDA reporting has just recently begun. The condition of the crop seemingly has improved. Areas of the Southwest have gotten rainfall. For the week ending June 4, the U.S. crop was 51% good to excellent – up slightly from the prior week. If the U.S. crop shows potential to get larger, that may not have a negative impact on price as long as signals on the demand side continue to improve. The 2023 U.S. crop was increased 1 million bales due to improved conditions and less abandonment likely.
Local Yarn Market:
(The local yarn market is expected to remain the same and unchanged in terms of prices with limited demand and a high reliance on the US dollar)
1- The local yarn market remained constant and robust in terms of asking prices, with good business activity.
2- Most mills provide ready supply prior to Eid, and specific counts may begin within a week.
3- PSF prices remained stable on the domestic market and for next week it is expected to remain constant.
4- The Faisalabad market is slow in demand with limited business activity and the financial crunch remains considerate
5- The market is expected to remain the same and unchanged in terms of prices. With limited demand and a high reliance on the US dollar.
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 – 3575 | 485 – 500 |
| 20/1 Carded Weaving | 3500 – 3650 | 490 – 510 |
| 30/1 Carded Weaving | 3750 – 4000 | 525 – 560 |
| 30/1 PC Carded Weaving 52:48 | 2900 – 3080 | 405 – 430 |
| 40/1 Combed Compact Weaving | 4425 – 4550 | 620 – 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 – 515 |
Export Yarn Market:
(The export yarn market remained firm and stable note with good business activity. customers remained in the market and kept on floating handsome inquiries. Order materialization was also good)
1- The export yarn market remained firm and stable with improved business activity. customers floated handsome numbers of inquiries against which order confirmation was good as well.
2- We might see orders placements in days to come as market is improving and business is getting betters.
3- Cotton prices showed soft sentiment but it didn’t put any major impact on prices. Suppliers are already touching their break even level and didn’t show any interest to drop their prices.
4- Good suppliers are booked till Early August and offering onward deliveries whereas average suppliers are sold till Mid July and offering onward deliveries..
| Count | USD / Bale |
| 16/1 Carded Weaving | 520 – 530 |
| 20/1 Carded Weaving | 530 – 540 |
| 20/1 CM | 555 – 560 |
| 16/1 CM | 535 – 540 |
| 20/2 CD | 555 – 560 |
| 24/2 CD | 580 – 585 |
| 10/1 CARDED SIRO YARN WEAVING | 455 – 480 |
Local Fabric Market:
(For local fabric, we do not foresee any major change in current sentiments for both narrow & wider-width fabrics for next couple of weeks)
1- The local fabric market remained slow for another week for both narrow and wider-width fabrics.
2- Local buyers shared limited inquiries throughout the week and the week closed with limited order confirmation for both narrow and wider-width fabrics.
3- Fabric prices remained firm despite availability of limited orders.
4- Weavers covered their narrow width till 3rd week July’2023 whereas, they have coverage of their wider width looms till End July’2023/ early August’2023 and offer onward deliveries.
Export Fabric Market:
(Improved business activity was seen from Far Eastern markets however USA and European markets were slow. Prices are same as of last week due to stable raw material prices)
1- Export fabric market showed improvement in business activity.
2- Far Eastern customers have exchanged good number of inquiries which are expected to finalize during next week.
3- Asking prices were stable however customers are targeting 4~5% from the asking prices.
4- Suppliers are booked till 3rd week of July and offering end July onward deliveries.
5- USA and European customers remained slow during the week with limited business activity
6- Wider width prices were also stable and firm due to stable raw material prices.
7- Suppliers are booked till mid of Aug and offering end Aug onward deliveries for wider width fabric.
Following are the closing rates based on CNF Far Eastern ports.
| Local and Export Fabric Prices | ||||||||||||
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Bed Linen and Towel:
(There was less business activity since last month. The Asian manufacturers are diverting their attention to domestic home textile products.. The factories are running 50 % and 60 percent of their capacity)
1- There was less business activity since last month. The Asian manufacturers are diverting their attention to domestic home textile products.
2- The European, UK, and USA markets are nearly quite the whole weak and very low flow of inquiries. It is expected that before the holidays in July, there will be some placement of orders from European region.
3- The factories are running between 50 % and 60 percent of their capacity.
4- There is a financial crisis in the market that still prevails as a result of poor lifting and less business activity which causes payments to raw material suppliers to be delayed.
Garments:
(Pakistan’s garment industry facing a tough time in 2nd quarter of 2023, but as per the current sentiments, there is a ray of hope that customers will start placing decent quantity of orders at the end of 2nd quarter or early in 3rd quarter of 2023)
1- Overall Pakistan’s garment industry is facing uneven business activity, where factories are not getting enough orders to fill their 100% production capacities. Due to inflation, it has been observed that many retailers and brands have reduced their buying.
2- However, the good part is customers keep placing new developments of FW24 that raise a ray of rope in future business.
3- For new inquiries, factories are offering End Aug and onward deliveries.
Crude Oil:
1- Crude Oil prices opened at USD 67.12 with lower level as compared to last week closing figures.
2- In this week, crude oil price showed mix trend and closed on the higher side.
3- On the last day of the week, Crude Oil prices closed at USD 71.78 with an increase of USD 4.66 cents as of the opening figure of week.
| Opening of Week | Closing Of Week | Change | |
| Price | 67.12 | 71.78 | 4.66 |
Exchange Rate:
1- In last week values of Pak rupee deprecated against US Dollar’s, other major currencies showed mix trend in both interbank and open markets.
2- At the end of week, Euro closed on a negative note with figure of 1.09 and British Pound closed on positive note with figure 1.28 against USD.
| Selling | Buying | |
| LC Sight | 286.06 | 286.01 |
| LC 120 Days | 274.64 | 274.59 |
| Open Market | 290.63 | 284.38 |
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 slightly recovered but closed on the opposing side.
3- On the last day of the week, JUL 2023 closed at 81.46 with a decrease of 203 points.
4- On the last day of the week, OCT 2023 closed at 82.05 with a downward of 159 points.
5- On the last day of the week, DEC 2023 closed at 80.10 with a lower of 122 points.
Liver Pool Indices:
1- Liverpool Index A opened at 94.15 on the same level as of last week’s closing figure.
2- This week Index “A” showed a downward tendency and was close to the opposing side.
3- LPI “A” closed at 90.90 on the last day of the week with a decrease of 325 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 94.15 | 90.90 | -3.25 |
