Pakistan Local Cotton Market:
(Local cotton prices are expected to remain stable and firm due to a stronger dollar and an increase in New York cotton prices. It seems that buyers will remain busy to cover their stocks from local markets in these levels)
1- In the local cotton market, handsome business activities were seen as all major buyers remained busy in making deals in fear that prices may rise further as well as less availability of import of cotton because of restriction of import of LCs and continuous depreciation of Pkr
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.
3- PCGA issued the arrival figure of 1.4 million bales, which looks good enough to harvest around 10 million bales in view of the present condition of the crop. The quality however has dropped for the time being and is likely to improve in the few days if there is no further rain. The picking after rain is yet to start; therefore, arrival in ginning factories is very low.
4- Last week, cotton prices in Punjab and Sindh showed a firm trend, the price range was in between Rs 17,400 to Rs 18,400 per maund (0.74~0.78) 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 17,900 per maund. The rate of cotton in Punjab is in between Rs 17,900 to Rs 18,400 per maund. KCA was the same at rs.17,700 per maund and PSF took a jump twice within a week and reached at the level of 355 pkr/kgs.
Local Yarn Market:
(Improved business activity was observed in local yarn market. PSF prices increased twice in a week. The future week cleared the market’s further business activity, leading to cotton prices, customer demand, and supplier offers)
1- The local yarn market is stable and firm in prices with better activity than last week.
2- Most of the mills are sold for two weeks for normal yarn and specialized counts may start after a week time.
3- The prices of PSF were elevated twice this week by IFL Rs. 5/kg on July 3 and Rs. 5/kg on August 2 in the domestic market and are expected to be augmented more by next week.
4- The Faisalabad market is better in demand, with standard business activity and cash flow disquiet remaining.
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3400 – 3550 | 475 – 495 |
| 20/1 Carded Weaving | 3450 – 3650 | 480 – 510 |
| 30/1 Carded Weaving | 3725 – 3950 | 520 – 550 |
| 30/1 PC Carded Weaving 52:48 | 2970 – 3100 | 415 – 435 |
| 40/1 Combed Compact Weaving | 4400 – 4500 | 615 – 630 |
| 60/1 Combed Compact Weaving | 5950 – 6100 | 830 – 850 |
| 80/1 Combed Compact Weaving | 8000 – 8250 | 1115 – 1150 |
| 40/1 CVC Carded Weaving 60:40 | 3520 – 3610 | 490 – 505 |
Export Yarn Market:
(The export yarn market remained firm and stable with notable business activity. customers from all regions kept on sharing inquiries against which good numbers of orders were closed)
1- The export yarn market remained active as good numbers of enquiries were received form customers in different regions.
2- Suppliers are firm and stable in asking their prices. However, in presence of firm bids, they showed flexible tone and closed business.
3- We might see prices in same range with minor fluctuation as cotton arrival is good and suppliers are in selling mood.
4- Cotton prices remained firm during the week.
5- We might see good orders in coming days from Chinese and Bangladesh market. European market is expected to be slow due to holidays.
Export Yarn Prices
| Count | USD / Bale |
| 16/1 Carded Weaving | 505 – 510 |
| 20/1 Carded Weaving | 515 – 520 |
| 20/1 CM | 540 – 545 |
| 16/1 CM | 520 – 525 |
| 20/2 CD | 555 – 560 |
| 24/2 CD | 575 – 580 |
| 10/1 CARDED SIRO YARN WEAVING | 440 – 470 |
Local Fabric Market:
(Local fabric market business is slow. Customer target prices are low hence suppliers could not manage the prices. For the coming weeks, we expect slow sentiments to prevail with slight fluctuation of price with the tendency to move upward)
1- In the current week under review, the local fabric market remained slow and dull for another week for both narrow and wide fabrics.
2- Local finishers and brands showed no interest in buying and shared limited inquiries throughout the week and resultantly week closed with low demand for both narrow and wide fabrics.
3- Fabric prices slightly increased as compared to last week due to increasing yarn prices. Weavers were hungry for orders but could not book more due to low target prices from buyers.
4- The majority of the weavers booked their narrow-width looms until the 1st week of September 2023 and have coverage of their wide-width looms until mid-September 2023 ~ 3rd week of September and are offering deliveries from then on.
Export Fabric Market:
(Export fabric market remained depressed with limited business activity from Far Eastern markets. USA buyers were little bit active however European markets were quite due to summer holidays)
1- Export fabric market remained depressed due to slow demand from the globe. Limited inquiries were received from China, Korea, Bangladesh and Vietnam resultant limited orders during the week.
2- Asking prices were stable despite of increase in yarn prices.
3- Some of the suppliers were accepting even lower target prices considering US dollar rate against PKR.
4- Suppliers are booked for next 2~3 weeks and offering onward deliveries.
5- USA market was little bit active as suppliers have received decent inquiries resultant limited booking however there was slow demand from. European countries due to summer holidays.
6- Wider width suppliers could not extend their sales during the week as most of the customers are on holidays.
7- Suppliers are booked for next 30~40 days in wider width fabric and offering 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:
1- This week in Home Textiles, we see improved business activities 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 60- 65% of their capacity.
3- There is a financial crisis that still prevails but is expected to be better in the coming months.
Garments:
(Lower client demand is putting a strain on garment factory capacities, forcing them to operate at reduced capacity)
1- Pakistani garment firms are searching for large volumes to fill their production space. Some of the factories have received good orders from their export based customers. Some major global apparel labels have also begun placing orders. This has provided a gleam of hope for the forthcoming seasons.
2- Few brands are also developing new products for the FW24 season. Factories have begun to re-hire their daily wage labour force. At the same time, some textile firms are still recruiting workers.
3- Some of the knitting producers have recently received good orders from garment makers.
4- Overall, factories have delivery accessible 90 to 100 days after order confirmation.
Crude Oil:
1- Crude Oil prices opened at USD 81.80 a higher level as compared to last week’s closing figures. in this week, crude oil prices showed mix tendencies and closed on the higher side.
2- In the last day of the week, Crude Oil prices closed at USD 82.82 with an increase of USD 02 as of the opening figure of the week.
| Opening of Week | Closing Of Week | Change | |
| Price | 81.80 | 82.82 | 1.02 |
Exchange Rate:
1- In last week values of Pak rupee depreciated 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 positive note with figure of 1.10 and British Pound also closed on positive note with figure 1.27 against USD..
| Selling | Buying | |
| LC Sight | 286.50 | 286.45 |
| LC 120 Days | 278.38 | 278.33 |
| Open Market | 290.48 | 284.23 |
New York Cotton Future:
1- New York Cotton futures opened with higher level on Monday as compare to previous week’s closing figures. NYCF showed mix trend in whole week and closed with negative notes.
2- On the last day of the week, OCT 2023 closed at 85.27 with downward of 17 points.
3- On the last day of the week, DEC 2023 closed at 84.29 with drop of 43 points.
4- On the last day of the week, MAR 2023 closed at 84.40 with lower of 35 points.
Liverpool Indices:
1- Liverpool Index A was opened at 94.90 on lower level from the previous week of closing figure.
2- In this week Index “A” showed upward trend and closed on positive side.
3- At last day of the week, LPI “A” closed at 95.60 with increase of 70 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 94.90 | 95.60 | 0.70 |
