Pakistan Local Cotton Market:
(Local cotton market showed an active trend with an upward price trend. Seems that activity will remain good and prices may rise further. Import of cotton wouldn’t be feasible due to the devaluation of the PKR)
1- In the domestic cotton market, a bullish trend prevailed in terms of activity. Buyers remained active due to many reasons. Currency depreciation, the rainy season which may hurt cotton and the rising trend of international cotton pushed buyers to keep buying cotton on these levels.
2- Cotton prices also gear up due to the activity in the market and seems that prices will remain upward in the coming days.
3- Cotton arrivals in Pakistan have been reported in 15th July, reaching a total of 858,007 bales as of July 15, indicating a significant development in the country’s cotton industry. The cotton sowing target for the current season is approximately 2.764 million hectares, indicating the extent of cultivation dedicated to cotton production. In terms of cotton production, the target set for the current fiscal year is 12.7m bales. the previous year’s cotton output stood at approximately 4.9m bales.
4- Indian cotton prices continued to see an upward trend due to stronger ICE cotton, new crop worries in central Indian states, and buying of new crops by MNCs. ICE cotton had found support from hot weather in growing regions of the US. There were reports of resowing of cotton in some areas of Gujarat and other nearby states because the earlier sowed crop washed away due to heavy rains.
5- Last week, cotton prices in Punjab and Sindh showed an upward trend due to the handsome business activity, the price range was in between Rs 17,500 to Rs 18,500 per maund (0.75~0.80) Cents) while Phutti prices ranged from Rs 8,500 to Rs 9,000 per 40kg. The rate of cotton in Sindh is in between Rs 17,500 to Rs 18,000 per maund. The rate of cotton in Punjab is in between Rs 17,900 to Rs 18,500 per maund. KCA increased rs.700 and came at Rs 17,700 per maund and PSF was at the level of 345 pkr/kgs.
Local Yarn Market:
(The local yarn market remained firm with slow business activity)
1- The local yarn market is consistent and firm due to the uphill trend of the dollar, NYCF, and local cotton with slow business activity.
2- Most mills sell two weeks of yarn; specialized counts may start within a week.
3- PSF prices were decreased by Rs.5/kg dated 17th July 2023 by IFL. For next week it is expected to increase by Rs 2~3/kg.
4- The Faisalabad market is modest in demand, with average business activity and cash flow concerns remaining.
5- The market’s further business movement was cleared by the upcoming week, leading to cotton prices, customer demand, and supplier offers.
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 | 3300 – 3400 | 465 – 480 |
| 20/1 Carded Weaving | 3320 – 3520 | 470 – 495 |
| 30/1 Carded Weaving | 3650 – 3850 | 515 – 540 |
| 30/1 PC Carded Weaving 52:48 | 2850 – 3000 | 400 – 425 |
| 40/1 Combed Compact Weaving | 4300 – 4400 | 605 – 620 |
| 60/1 Combed Compact Weaving | 5850 – 6050 | 825 – 850 |
| 80/1 Combed Compact Weaving | 7900 – 8200 | 1115 – 1155 |
| 40/1 CVC Carded Weaving 60:40 | 3450 – 3580 | 485 – 505 |
Export Yarn Market:
(The Export yarn market remained soft in terms of prices but orders materialization was good. Customers have booked good quantity orders. We might see same sentiment in days to come as well)
1- Export yarn market remained under soft note as customers remained active and kept on buying good quantities as prices are matching with their required levels.
2- Suppliers are running productions in full capacity and it is expected that prices will show betterment in days to come.
3- Although cotton is firm and stable in both local and international market but suppliers are selling on attractive prices to get maximum share from export markets.
4- Suppliers were offering prices actively but were quite flexible in presence of firm bid and confirmed orders.
5- Good suppliers are booked till end august and offering September deliveries whereas average quality suppliers are booked till mid-august and offering end august/ early September deliveries.
| Export Yarn Prices | ||||||||||||||||
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Local Fabric Market:
(The local fabric market was slow with less demand. Prices rose due to higher yarn prices)
1- The local fabric market was sluggish this week with low demand for both narrow and wider-width fabrics.
2- Local brands and finishers stayed inactive for another week and very few deals were made for both types of fabrics.
3- Fabric prices were stable until mid-week but rose later due to higher yarn prices.
4- Major weavers have booked their narrow-width looms until mid-August’2023 and their wider-width looms until the end of August’2023 and are offering later deliveries.
5- We expect the market to remain slow in the coming weeks with limited trading activity as yarn prices may rise further.
Export Fabric Market:
(Far Eastern markets have limited buying due to much of stock with the customers European customers have placed limited orders however USA buyers have booked decent quantities)
1- Export fabric market is not picking up in true sense due to recession all around the globe.
2- There were limited inquiries from Korea, China, Bangladesh, Japan and Vietnam resultant limited buying during the week.
3- Asking prices were same as of last week.
4- Suppliers are booked till mid of Aug and offering onward deliveries.
5- European customers have exchanged limited number of inquiries before going to summer vacations resultant limited buying
6- USA buyers have discussed bulk orders with their selected suppliers and decent booking was noticed both in narrow and wider width fabrics.
7- Wider width suppliers are in comfortable zone and offering end Sep onward deliveries.
Following are closing rates based on CNF Far Eastern ports.
| Local and Export Fabric Prices | ||||||||||||
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Bed Linen and Towel:
(Home textile sector stagnant from last few months due to inflation, low purchasing power and less demand from consumers)
1- Round the globe the market is stagnant from last few months due to inflation, low purchasing power and less demand from consumers.
2- This week in Home Textiles, the business activity is comparatively less than last week. The flow of inquiries from European, UK, and USA markets were not seen much. It is expected that the pattern will remain the same until August as stores still have a lot of stocks.
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:
(Garment demand is getting better and expecting orders from retailers in the coming months, but the situation will clear by the end of the 3rd quarter)
1- Overall, it is anticipated that Pakistan’s garment industry will continue to contribute significantly to the nation’s economy, despite potential obstacles posed by the industry’s need to adjust to shifting global market conditions.
2- Some of the garment factories recently received enough orders to fill their capacities, on the other hand from some of the sources it came to know that, knitting and dyeing capacities are getting filled for the deliveries of Aug/Sep 2023. This shows positive sentiments in Pakistan’s market. The demand raised from some European customers and some from the USA market, especially from some big retailers.
3- Factories have space to offer deliveries from Nov 2023 onwards.
Crude Oil:
1- Crude Oil prices opened at USD 74.15 a lower level than last week’s closing figures.
2- This week, crude oil prices showed an upward tendency and closed on the higher side.
3- In last day of the week, Crude Oil price closed at USD 77.07 with increase of
USD 2.92 as of opening figure of week.
| Opening of Week | Closing Of Week | Change | |
| Price | 74.15 | 77.07 | 2.92 |
Exchange Rate:
1- Last week, the value of the Pak rupee depreciated against US Dollar, and other significant currencies showed a mixed trend in interbank and open markets.
2- At the end of the week, Euro closed on a negative note with the figure of 1.11 and the British Pound also closed on a negative note with a figure of 1.29 against USD.
| Selling | Buying | |
| LC Sight | 283.98 | 283.93 |
| LC 120 Days | 275.35 | 275.30 |
| Open Market | 288.30 | 282.10 |
New York Cotton Future:
1- New York Cotton futures opened higher on Monday than the previous week’s closing figures.
2- NYCF showed an upward trend in the whole and closed with positive notes.
3- On the last day of the week, OCT 2023 closed at 85.08 with upward of 242 points. 85.08
4- On the last day of the week, DEC 2023 closed at 84.48 with rose of 326 points.
5- On the last day of the week, MAR 2023 closed at 84.43 with a higher of 308 points.
Liver Pool Indices:
1- Liverpool Index A opened at 91.90 on the same level as last week’s closing figure.
2- This week Index “A” showed a firm trend and closed on the positive side.
3- On the last day of the week, LPI “A” closed at 93.80 with an increase of 190 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 91.90 | 93.80 | 1.90 |
