Pakistan Local Cotton Market:
(Cotton prices increased as local buyers preferred quality cotton over low-priced imports and Low ICE Cotton prices did not deter local buyers due to currency depreciation)
1- In the domestic cotton market, overall cotton prices improved due to interest in buying by textile mills and spinners during the last week. The quality of cotton is getting relatively better after the rains. Due to this, more and more textile mills are now buying the cotton.
2- International cotton prices remained low but the depreciation of the currency in Pakistan pushed buyers to keep buying from local sources as imports will not be feasible and local cotton prices may rise further.
3- Cotton arrival in Pakistan witnessed a significant increase of 48% on August 15 compared to August 1, as per the latest fortnightly data released by the Pakistan Cotton Ginner’s Association (PCGA) on Friday. Total cotton arrival in Pakistan rose to 2.12 million bales as of August 15 compared to 1.43 million bales recorded on August 1, 2023, an increase of 0.69 million bales.
4- As of August 15, cotton arrival in Punjab clocked in at 0.64 million bales as compared to 0.39 million bales reported on August 01, 2023, an increase of 64%.
5- Similarly, cotton arrival in Sindh was 1.48 million bales compared to 1.04 million bales recorded in August 1, an increase of 0.44 million bales or 42%.
6- Last week, cotton prices in Punjab and Sindh held steady, ranging from Rs 17,700 to Rs 19,000 per maund, (USC 0.74~0.78 lbs) with Phutti prices at Rs 8,500 to Rs 9,000 per 40kg. In Sindh, cotton rate was Rs 17,700 to Rs 18,500 per maund, while in Punjab it ranged from Rs 17,900 to Rs 19,000 per maund. KCA increased rs. 300 to at Rs. 18,300 per maund, and PSF surged rs.2 to at 360 pkr/kg.
Local Yarn Market:
(Local yarn prices continuous rising trend. PSF prices also increased b Rs. 2/Kg. The market’s further business activity depends on count-wise demand and cotton prices in Pakistan)
1- The prices of yarn in the local market have gone up due to the rising trend of the US dollar and the devaluation of the Pakistani rupee.
2- Most of the mills are sold till early September and no one has bulk stocks. Specialized yarn counts may start after 10~12 days from the order confirmation.
3- The prices of PSF were increased by IFL Rs. 2/kg on August 16 in the domestic market and are expected to increase Rs 2~3 more by next week.
4- The Faisalabad market is good in demand, with consistent business activity and concerns about cash flow.
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3400 – 3650 | 460 – 495 |
| 20/1 Carded Weaving | 3425 – 3750 | 465 – 510 |
| 30/1 Carded Weaving | 3725 – 4000 | 505 – 545 |
| 30/1 PC Carded Weaving 52:48 | 3030 – 3140 | 410 – 425 |
| 40/1 Combed Compact Weaving | 4500 – 4600 | 610 – 625 |
| 60/1 Combed Compact Weaving | 6000 – 6200 | 815 – 840 |
| 80/1 Combed Compact Weaving | 8100 – 8300 | 1100 – 1130 |
| 40/1 CVC Carded Weaving 60:40 | 3600 – 3700 | 490 – 505 |
Export Yarn Market:
(The export yarn market is firm and stable with moderate demand and supply. Suppliers are confident and booked for the near future. The market may see more activity from China and Europe in the coming weeks)
1- The export yarn market showed decent business activity as customers remained in market and kept on floating handsome numbers of enquiries.
2- Suppliers are firm in asking their prices as they have good sales coverage. We might see another phase of buying from China in the month of August which will ease suppliers more in terms of sales.
3- Good suppliers are booked till the end of September and offering onward deliveries whereas average suppliers are offering end-September shipments.
4- European customers are on holidays and will resume work in end august/ early September. This will be an added factor to drive market as they have not booked orders before holidays and once they are back, there will be handsome activity from there as well.
5- We might see good business activity in weeks to come from China.
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Local Fabric Market:
(Slow market sentiment was noticed in local fabric with rising price trend. Conversion based suppliers have received good quantity of order for Sep ~ mid Nov deliveries)
1- Another week closed with slow and limited activity for both narrow and wider-width fabrics in the current week under review.
2- Buyers are targeting lower prices about 4~5% from the current level with limited buying. At the same time, fabric prices continuous on rising in line with yarn prices.
3- Weavers are offering deliveries from the third week of September’2023 for narrow-width fabrics and from end October for wide-width fabrics.
4- Conversion based loom suppliers have increased their loom flows due to increase in cost of production. Custom
5- Customers have placed decent quantity of orders with conversion based suppliers form end Sep ~ mid of Nov deliveries.
Export Fabric Market:
(Fabric market remained mixed as there is limited demand from Far Eastern customers. Few customers of European and USA have exchanged limited inquiry as most of them are on vacations. Prices further increased by 2~3%)
1- Export fabric market remained slow during the week under review.
2- There was good flow of inquiries from Bangladesh but customer target prices were about 8~10% lower than the current price level hence no considerable buying was notices.
3- Some of the customers from China, Vietnam and Japan has placed limited quantity of orders with their selected suppliers.
4- Asking prices were increased about 2~3% during the week due to hike in yarn prices.
5- Suppliers are booked till mid of Sep and offering end Sep onward deliveries.
6- Less number of inquiries were received from European customers as most of them are on summer holidays.
7- USA buyers have exchanged limited number of inquiries mainly in narrow width however mostly customers are on holidays and will resume their office from end of Aug.
8- Wider width suppliers are booked till end of Sep and offering mid Oct onward deliveries..
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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 a lack of orders, Pakistan’s garment business is in a tough situation. The rising cost of production is making life more difficult for the industry)
1- Overall, it is expected that Pakistan’s garment industry would continue to contribute considerably to the country’s economy, despite potential challenges posed by the industry’s need to adapt to changing global market conditions.
2- Some garment factories recently got enough orders to fill their capacities; nevertheless, according to some sources, knitting and dying capacities are getting filled for Oct/Nov 2023 deliveries. This reflects positive market sentiment in Pakistan.
3- Factories have space to give deliveries beginning in November 2023, owing to increased demand from several European clients and some from the US market, particularly from some large stores.
Crude Oil:
1- Crude Oil prices opened at USD 82.51 a lower level as compared to last week’s closing figures. in this week, crude oil prices showed mix trend and closed on the lower side.
2- On the last day of the week, Crude Oil prices closed at USD 81.25 with a decrease of USD 1.26 as of the opening figure of the week.
| Opening of Week | Closing Of Week | Change | |
| Price | 82.51 | 81.25 | -1.26 |
Exchange Rate:
1- In the last week values of the Pak rupee depreciated against US Dollar’s, and 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 1.09 and the British Pound closed on a negative note with a figure 1.27 against USD..
| Selling | Buying | |
| LC Sight | 294.45 | 294.40 |
| LC 120 Days | 288.29 | 288.24 |
| Open Market | 298.30 | 291.90 |
New York Cotton Future:
1- New York Cotton futures opened at a lower level on Monday as compared to the previous week’s closing figures. NYCF showed mix downward trend for a whole week and closed on negative notes.
2- On the last day of the week, OCT 2023 closed at 84.32 with a decrease of 179 points.
3- On the last day of the week, DEC 2023 closed at 83.68 with a drop of 173 points.
4- On the last day of the week, MAR 2023 closed at 83.55 with a lower of 187 points..
Liver Pool Indices:
1- Liverpool Index A opened at 96.70 on the same level as last week’s closing figure.
2- This week Index “A” rose the next day and showed a downward side until the last trading session and closed on the opposing side.
3- On the last day of the week, LPI “A” closed at 95.15 with a decrease of 115 points..
| Opening of the Week | Closing of the Week | Change | |
| Index A | 96.70 | 95.15 | -1.55 |
