Pakistan Local Cotton Market:
(The anticipation is for consistent cotton prices because of a stronger dollar and the rise in New York cotton prices. This suggests that buyers will likely be actively engaged in purchasing to secure their stocks from the local markets at these price levels)
1- In the local cotton market, robust business activities were observed as major buyers worked diligently due to fears of price hikes. Import of cotton was limited due to LC restrictions and ongoing Pkr depreciation.
2- Cotton prices rose due to global trends and increased local demand, with notable upticks seen in the USA, China, and India as well.
3- PCGA reported 1.4 million bales arrived, potentially yielding 10 million bales given current crop conditions. Quality temporarily decreased, expected to recover if no more rain.
4- In the latest 2023/24 U.S. cotton projections, larger starting stocks and a 2.5-million-bale production decrease lead to reduced exports, domestic use, and ending stocks. Beginning stocks increased due to higher 2022/23 ending stocks, reflecting lower exports and July 29 warehouse inventory levels. NASS estimates 2023/24 production at 14.0 million bales, down 2.5 million due to increased abandonment and reduced yield in the Southwest. Exports drop by 1.3 million bales due to reduced U.S. supply and competition from Brazil and Australia, lowering ending stocks to 3.1 million bales. U.S. cotton’s average price is forecasted at 79 cents per pound, up by 3 cents.
5- Global 2023/24 production decreases by 2.7 million bales, and consumption rises by 500,000 bales, leading to a 2.9-million-bale decrease in projected ending stocks. World production drops due to heat impacting Uzbekistan yields. World trade increases by 400,000 bales, with higher imports by China and Turkey, and Brazil and Australia’s higher exports offset U.S. and Benin declines. China and Turkey’s consumption rises, while Indonesia’s consumption falls.
6- Last week, cotton prices in Punjab and Sindh held steady, ranging from Rs 17,600 to Rs 18,500 per maund, (USC 0.75~0.78 lbs) with Phutti prices at Rs 8,500 to Rs 9,000 per 40kg. In Sindh, cotton rate was Rs 17,600 to Rs 18,000 per maund, while in Punjab it ranged from Rs 17,900 to Rs 185400 per maund. KCA increased rs. 200 to at Rs. 17,900 per maund, and PSF surged rs.3 to at 358 pkr/kg.
Local Yarn Market:
(Improved business activity was observed in local yarn market. PSF prices increased by Rs. 3/Kg)
1- The prices in the local yarn market are steady and there has been improved activity compared to last week.
2- Most mills sell yarn until the end of August, and specialized counts may start after 10 days of the delivery timeline.
3- The prices of PSF were amplified by IFL Rs. 3/kg on July 7 in the domestic market and are expected to increase by next week.
4- The Faisalabad market is average in demand, with regular business activity and concerns about cash flow.
5- The approaching week cleared the market’s further business activity, leading to cotton prices, customer demand, and supplier offers..
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3400 – 3580 | 475 – 500 |
| 20/1 Carded Weaving | 3420 – 3700 | 475 – 515 |
| 30/1 Carded Weaving | 3725 – 3950 | 520 – 550 |
| 30/1 PC Carded Weaving 52:48 | 2970 – 3100 | 415 – 430 |
| 40/1 Combed Compact Weaving | 4400 – 4500 | 615 – 625 |
| 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 with average business. Suppliers are firm in their asking prices whereas customers have placed orders as per their requirements with the same price levels as of the last deals. Business activity is expected to remain good in days to come)
1- The export yarn market remained firm and stable with nominal business activity.
2- Customers remained in the market and kept on checking prices. There have been order placements where customers have achieved their desired price levels.
3- Suppliers are in good sales positions and staying firm and stable. Some suppliers have increased their prices to attempt a better order price than previous sales.
4- Good suppliers are booked till the end of September and offering onward deliveries whereas average suppliers are offering end-September shipments.
5- We might see good business activity in weeks to come from China.
6- European markets are closed for holidays and business activity will resume in September.
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Local Fabric Market:
(Mixed market sentiment was observed in local fabric market with less demand. Prices were stable)
1- The local fabric market remained sluggish and dull for both narrow and wider width fabrics in the current week under review.
2- Local finishers stayed away from buying for another week and showed no interest in buying, resultantly slow market sentiments prevailed.
3- Fabric prices slightly increased due to increase in yarn prices. Weavers were willing to take orders but could not book more due to low-bids from buyers.
4- Major weavers booked their narrow-width looms until the third week of September’2023 and their wide-width looms until end September /early October 2023 and are offering onward deliveries.
5- For the coming weeks, we expect the market to remain slow with limited trading activity for both narrow and wide fabrics.
Export Fabric Market:
(Slow business was seen in export fabric market due to less demand. USA and European customers were little bit active and placed some orders mainly in wider width)
1- Export fabric market remained mixed as some of the customers from Korea, China and Japan has booked limited quantities however major customers were remained aside of buying.
2- Asking prices are stable since last couple of weeks.
3- Suppliers are booked for next 2~3 weeks and offering mid Sep onward deliveries.
4- USA and European buyers have placed orders in basics in small quantities. Majority of the customers are on summer holidays and expected to start proper business activities from end of Aug.
5- Wider width prices remain same as of last week.
6- Suppliers are offering End Oct onward deliveries however some of the suppliers are still offering end Sep / early Oct onward deliveries for wider width.
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Bed Linen and Towel:
1- This week in Home Textiles, we see some business activities better 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:
(Due to low demand from the US and EU markets, overall garment manufacturers in Pakistan are operating at low capacity and looking for orders to fill their space; however, there is some hope that certain prominent garment brands have begun placing orders with chosen units)
1- Pakistani garment factories are searching for large volumes to fill their production space. Some factories have received orders from export customers and are filling them. Some major global apparel labels have also begun placing orders with their usual production operations. This has provided a gleam of hope for the forthcoming seasons.
2- Some American and European brands are also working on new products for the FW24 season. Factories have begun to re-hire their daily wage labor force. At the same time, other garment companies are still waiting for orders to fill their manufacturing capacity.
3- Some garment manufacturers have recently received good orders from their customers. Overall, factories have delivery available 90 to 100 days after order confirmation.
Crude Oil:
1- Crude Oil prices opened at USD 81.94 a lower 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 83.19 with an increase of USD 1.25 as of the opening figure of the week.
| Opening of Week | Closing Of Week | Change | |
| Price | 81.94 | 83.19 | 1.25 |
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 a figure of 1.09 and the British Pound closed on a positive note with a figure of 1.26 against USD.
| Selling | Buying | |
| LC Sight | 286.88 | 286.83 |
| LC 120 Days | 279.00 | 278.95 |
| Open Market | 290.88 | 284.63 |
New York Cotton Future:
1- New York Cotton futures opened at a higher level on Monday as compared to the previous week’s closing figures. NYCF showed mix trend for a whole week and closed with positive notes.
2- On the last day of the week, OCT 2023 closed at 89.29 with an increase of 291 points.
3- On the last day of the week, DEC 2023 closed at 87.89 with a rise of 255 points.
4- On the last day of the week, MAR 2023 closed at 87.67 with a higher of 222 points
Liver Pool Indices:
1- Liverpool Index A opened at 95.60 on the same level as the previous week of closing figure.
2- In this week Index “A” showed mix trend and closed on the positive side.
3- At the last day of the week, LPI “A” closed at 96.70 with an increase of 110 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 95.60 | 96.70 | 1.10 |
