Pakistan Local Cotton Market:
(Local cotton market showed active trend with an upward price trend. It seems that activity will remain good and prices may rise further in the days to come. Import of cotton wouldn’t be feasible due to the devaluation of the PKR and rising trend internationally)
1- In the domestic cotton market, slow business activity was seen due to rains on the cotton belt. Needy buyers took small quantities of bales but most of them remain aside of buying. Ginners were reluctant to sell cotton in the expectation that prices may rise further as international cotton prices showed an upward trend for a whole week.
2- Cotton prices remained firm to upward in the market and major factors were the international upward trend and rising demand here in local market. Currency devaluation will also be a major hit for the importers.
3- ICAC’s specialty cotton report suggests that for the 2022-23 season, almost all significant producers are anticipated to register higher yields of ELS and LS cotton. The planting area in the United States has surged by 43 percent. It is anticipated that this increase in planting area may help to boost global production. Production in the US and Egypt could potentially reach 103,000 and 105,000 tones respectively. A reduction in acreage in the US last year resulted in an overall production decrease of 20 percent. Major producers like India, China, and Israel also saw declining production trends.
4- Last week, cotton prices in Punjab and Sindh showed firm trend, the price range was between Rs 17,700 to Rs 18,700 per maund (0.75~0.79) 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 between Rs 17,900 to Rs 18,700 per maund. KCA increased rs.235 and came at Rs 17,935 per maund and PSF was at the level of 345 pkr/kgs.
Local Yarn Market:
(The local yarn market prices were firm with limited business activity. It will have further clear sentiment during coming weeks for prices and demand)
1- The local yarn market is consistent and firm and yarn rates improved in terms of inquiring offers with usual business activity.
2- Most mills sell yarn till mid-august further specialized counts may start after a week.
3- The prices of PSF have remained steady in the domestic market and are predicted to stay the same next week.
4- The Faisalabad market is modest in demand, with amended bids, business movement, and cash flow apprehensions lingering.
The upcoming week cleared the market’s further business movement, leading to cotton prices, customer demand, and supplier offers..
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3350 – 3450 | 470 – 480 |
| 20/1 Carded Weaving | 3365 – 3575 | 470 – 500 |
| 30/1 Carded Weaving | 3700 – 3900 | 515 – 545 |
| 30/1 PC Carded Weaving 52:48 | 2870 – 3080 | 400 – 430 |
| 40/1 Combed Compact Weaving | 4350 – 4450 | 610 – 620 |
| 60/1 Combed Compact Weaving | 5900 – 6100 | 825 – 850 |
| 80/1 Combed Compact Weaving | 7900 – 8200 | 1105 – 1145 |
| 40/1 CVC Carded Weaving 60:40 | 3500 – 3600 | 490 – 505 |
Export Yarn Market:
(Export yarn market remained under improved business activity. customers from all the regions remained active and good numbers of inquiries were received. Suppliers remained in market with flexible tone to grab orders)
1- Export yarn market showed good activity in terms of enquiries. Customers form all regions floated handsome numbers of demands.
2- Suppliers showed good interest in catching orders and showed flexible sentiment. This has given good support to suppliers and orders have been confirmed as well.
3- Cotton market showed upward trend due to which suppliers increase their offers but were flexible in presence of firm bids.
4- We might see good orders placements in next week as decent numbers of enquiries are under discussion.
| Export Yarn Prices | ||||||||||||||||
|
Local Fabric Market:
(Local fabric market remained slow. Customer target prices were lower due to which no considerable booking was noticed. For the coming weeks, we expect the market to remain slow with limited trading activity for both narrow and wide fabrics)
1- The local fabric market was sluggish and quiet for both narrow and wide fabrics in the current review period.
2- Local buyers stayed away for another week and did not show any interest in buying, resulting in a slow market with low demand for both narrow and wide fabrics.
3- Fabric prices went up from last week due to higher yarn prices. Weavers were willing to take orders but could not book more due to low target prices from buyers.
4- Major weavers booked their narrow-width looms until the third week of August 2023 and their wide-width looms until early September 2023 and are offering deliveries from then on.
Export Fabric Market:
(Mixed market sentiment was observed from Far Eastern markets however improved activity was seen from USA and European customers)
1- Far Eastern markets were mixed in term of business activity. Some of the Chinese customers have placed good quantity of orders. Korea, Japan, Vietnam markets were slow.
2- There was good demand from Bangladesh however their target prices were very low hence suppliers could not match the target prices.
3- Asking prices were stable despite of firm yarn prices as the suppliers were taken benefit of appreciation of US dollar.
4- Suppliers are booked till mid of Aug and offering end Aug onward deliveries.
5- USA buyers have exchanged good number of inquiries resultant decent booking for basic items both in narrow and wider width fabric.
6- Some of the European customers have placed orders before going on their summer vacations.
7- Wider width suppliers are in comfortable situation and offering mid ~ End Sep onward deliveries..
Following are closing rates based on CNF Far Eastern ports.
| Local and Export Fabric Prices | ||||||||||||
|
Bed Linen and Towel:
(For the home textile front, round the globe the market is slow from last few months due to inflation, low purchasing power and less demand from consumers)
1- This week in Home Textiles, we see some business activities more than last week. The flow of inquiries from European, UK, and USA markets were seen but mostly were for the price check before going on holidays. It is expected that the pattern will remain the same until end of August as stores still have a lot of stocks.
2- The factories are running at between 55- 65% of their capacity.
3- There is a financial crisis that still prevails but is expected to be better in the coming months.
Garments:
(Due to low demand from US and EU markets, overall garment factories in Pakistan are running under capacities and are looking for order to fill their space however it is ray of hope that some leading garment brands have started placing orders with selected units)
1- Garment factories in Pakistan are looking for big volumes to fill their production space. Some factories have got orders from export customers and fill their production. Some leading garments’ global brands have also started placing orders with their regular manufacturing units. This has resulted in a ray of hope for upcoming seasons.
2- Some US and European brands are also working on developments for FW24 season. Factories have started calling their daily wage work force back to work. At the same time some of the garment factories are still looking for orders to cover their production space. Some knitting manufacturers are reported to have good orders from garment factories in the recent past.
3- Overall factories have deliveries available from ninety to hundred days from order confirmation. It is expected that business situation will get further clarity by end of this year.
Crude Oil:
1- Crude Oil prices opened at USD 78.74 a higher level as compared to last week’s closing figures. in this week, crude oil prices showed an upward tendency and closed on the higher side.
2- On the last day of the week, Crude Oil prices closed at USD 80.58 with an increase of USD 1.84 as of the opening figure of the week..
| Opening of Week | Closing Of Week | Change | |
| Price | 78.74 | 80.58 | 1.84 |
Exchange Rate:
1- In the last week values of the Pak, rupee depreciated 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 positive note with a figure of 1.11 and the British Pound also closed on a positive note with a figure of 1.28 against USD.
| Selling | Buying | |
| LC Sight | 286.22 | 286.17 |
| LC 120 Days | 278.19 | 278.14 |
| Open Market | 290.32 | 284.08 |
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 on the whole and closed with positive notes.
3- On the last day of the week, OCT 2023 closed at 85.06 with a downward of 52 points.
4- On the last day of the week, DEC 2023 closed at 84.26 with a drop of 90 points.
5- On the last day of the week, MAR 2023 closed at 84.41 with a lower of 74 points.
Liver Pool Indices:
1- Liverpool Index A opened at 94.35 a higher level than the previous week of closing figure.
2- This week Index “A” showed an upward trend and closed on the positive side.
3- On the last day of the week, LPI “A” closed at 98.00 with an increase of 365 points
| Opening of the Week | Closing of the Week | Change | |
| Index A | 94.35 | 98.00 | 3.65 |
