Pakistan Local Cotton Market:
(Local cotton market remained good in term of activity , improved arrival of cotton caused the drop in prices. Cotton prices are showing softness from the last week. hence, buyers were remained busy in fear that import cotton will not be more feasible for them and will cost higher then the local cotton market. therefore they are continuous buying cotton from the local market)
1- In the domestic cotton market, the price of cotton showed a bearish trend during the last week as spinning mills showed interest in buying quality cotton while ginners also showed interest in selling cotton due to which business volume increased.
2- Fear of Pak rupee depreciation, pushing buyers away from import. The supply of Phuti is increasing day by day, seems that the cotton crop is satisfactory. Expected local market will remain active, because import seems difficult for buyers due to the multiple issues.
3- Separately, the crisis of the textile sector has intensified, as the government has neglected the textile and ginning sector in the federal budget, due to which there is a huge disappointment in these sectors. Demand and prices of cotton yarn are sluggish and there is a severe financial crisis in the market.
4- USA cotton market showed softness too, prices showed downward trend.
5- Last week, cotton prices in Punjab and Sindh showed significant drop due to the improved arrival of new crop, range was in between Rs 17,000 to Rs 19,000 per maund (0.77~0.83) Cents) while Phutti prices ranged from Rs 7,500 to Rs 9,500 per 40kg. in this week cotton prices dropped 1500~2000 /maund. KCA also dropped rs. 1400 to down at Rs 18,200 per maund and PSF was remain same at the level of 355 pkr/kgs.
Local Yarn Market:
(The Local yarn market remained stable and anticipated to persist the same, unchanged in terms of prices with partial demand and a high dependence on the US dollar)
1- The local yarn market remained stable and slow in terms of asking prices with virtuous business activity.
2- Prior to Eid, the majority of mills offer ready supplies, and specialized counts may start 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 average business activity and the financial crunch remains thoughtful
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 – 640 |
| 60/1 Combed Compact Weaving | 6000 – 6200 | 840 – 870 |
| 80/1 Combed Compact Weaving | 8100 – 8250 | 1135 – 1155 |
| 40/1 CVC Carded Weaving 60:40 | 3550 – 3700 | 500 – 520 |
Export Yarn Market:
(The export yarn market remained slow with very nominal business activity. customer floated good numbers of enquiries against which bids were furnished, we might see placements in next week)
1- The export yarn market remained slow with nominal business activity. customers have floated handsome numbers of enquiries against which order materialization was limited.
2- Suppliers remained firm in offering their prices however, they showed quite flexible attitude upon receipt of firm bids.
3- Heavy rains in Pakistan is once again hitting cotton belt and cotton arrivals are slow. So, we might see Pakistan cotton prices fir and stable.
4- Cotton prices showed soft sentiment internationally but it didn’t put any major impact on prices. Suppliers are already touching their breakeven level and didn’t show any interest to drop their prices.
5- Good suppliers are booked till Early August and offering onward deliveries whereas average suppliers are sold till Mid July and offering onward deliveries.
| Export Yarn Prices | ||||||||||||||||
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Local Fabric Market:
(Local fabric market was slow with limited business activity. Prices remained firm. We expect slow sentiments with limited trading activity for both narrow and wider-width fabrics in coming days as well)
1- Slow sentiments continued in the local fabric market throughout the week for both narrow and wider-width fabrics.
2- Finishers remained sideline, shared limited inquiries throughout the week, and resultantly closed the week with limited trading activity for both narrow and wider-width fabrics.
3- Fabric prices remained firm though the KCA spot rate dropped drastically.
4- Weavers covered their narrow-width looms till the 3rd week of July’2023 whereas, they have coverage of their wider-width looms till early August’2023 and offer onward deliveries.
Export Fabric Market:
(Export fabric business was in average both for narrow and wider width. Customers are not placing bulk orders at the moment. Prices remained stable)
1- Average kind of business activity was seen during the week. There was bulk orders under discussion from Korea, China and Bangladesh but customers have placed limited quantity.
2- Asking prices remained stable due to stable raw material prices.
3- Suppliers are booked till 3rd week of July and offering end July onward deliveries.
4- European and USA buyers have exchanged limited number of inquiries resultant limited business with selected suppliers.
5- Wider width fabric prices were stable
6- Suppliers for wider width are booked till mid of Aug and offering end Aug onward deliveries.
Following are the closing rates based on CNF Far Eastern ports.
| Local and Export Fabric Prices | ||||||||||||
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Bed Linen and Towel:
(Home textile business was better than last week. There was good flow of inquiries from Europe, UK and USA markets)
1- Round the globe the market is stagnant from last few months due to inflation and less demand from consumers.
2- This week in Home Textiles, the business activity is comparatively better than last week. The flow from inquiries from European, UK, and USA markets were seen in the market. It is expected that before the holidays in July, there will be some materialization of orders from the European region.
3- The factories are running at between 60-70% of their capacity.
4- There is a financial crisis that still prevails but is expected to be better in the coming months.
Garments:
(Pakistan’s garment sector is facing a difficult scenario due to a lack of orders. The increasing cost of production is putting the industry in a more difficult position)
1- Many countries have seen a drop in garment demand as people cut back on spending owing to economic uncertainties. Pakistan’s garment sector received very few orders from various customers around the globe.
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- Normally, factories receive projection-based orders from large retailers, but there has been a slow sentiment in the market at the end of the 2nd quarter of 2023, one of the reasons being global inflation.
4- For new orders, factories are offering from early September 23 onwards deliveries.
Crude Oil:
1- Crude Oil prices opened at USD 70.50 with lower level as compared to last week closing figures.
2- In this week, crude oil price rose in next day, later showed downward trend till closing and closed on lower side.
3- In last day of the week, Crude Oil price closed at USD 69.16 with decrease of USD 1.36 cents as of opening figure of week..
| Opening of Week | Closing Of Week | Change | |
| Price | 70.50 | 69.16 | -1.36 |
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 also closed on negative note with figure 1.27 against USD.
| Selling | Buying | |
| LC Sight | 285.32 | 285.27 |
| LC 120 Days | 273.49 | 273.44 |
| Open Market | 290.12 | 283.88 |
New York Cotton Future:
1- New York Cotton futures opened with lower level on Monday as compare to previous week’s closing figures.
2- NYCF showed downward trend in this week and closed on lower side.
3- On the last day of the week, JUL 2023 closed at 78.06 with decrease of 260 points.
4- On the last day of the week, OCT 2023 closed at 79.83 with downward of 291 points.
5- On the last day of the week, DEC 2023 closed at 78.67 with lower of 203 points.
Liver Pool Indices:
1- Liverpool Index A was opened at 91.65 on same level from the previous week of closing figure.
2- In this week Index “A” showed mix trend and close on positive side.
3- At last day of the week, LPI “A” closed at 92.00 with increase of 35 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 91.65 | 92.00 | 0.35 |
