Pakistan Local Cotton Market:
(Due to the depreciation of the Pakistani currency, local cotton buyers are purchasing from local sources to avoid the high cost of imports. The high demand and low supply may cause local cotton prices to continue rising. As a result, buyers are purchasing cotton at all levels to secure their stocks and profits)
1- The domestic cotton market saw an upward trend in prices, and buyers remained active in purchasing due to the fear of further price increases.
2- The devaluation of the rupee against the dollar is the primary reason behind the rise in cotton prices. As a result, cotton prices have surged to Rs. 22,000 per maund, while phutti prices are averaging above Rs. 10,000 across Pakistan.
3- As the rupee continues to fall, traders have realized that imports would become more expensive or nearly impossible. They will import cotton as per the actual requirement , hence trying to cover their stocks from local markets.
4- The USA cotton market is currently locked in the same ten-month trading range that dates back to November 2022. The U.S. crop is bad and getting worse, but the Pakistani and Indian crops are getting bigger and better, respectively. The world carryover at 91 million bales is a lead cap on prices. The Fed has given every indication that interest rates will continue to increase, which will cause an increase in the value of the dollar and an increase in the price of cotton in the export market. Inflation and higher interest rates make things worse there.
5- India has turned the flow of water in the Sutlej River towards Pakistan, due to which the crops are being damaged because of flood situation in many areas. However, there is fear of some loss due to pest attack.
6- Last week, cotton prices in Punjab and Sindh increased around 1800~2000 per maund, ranging from Rs 19,000 to Rs 22,000 per maund, (USC 0.77~0.88 lbs) with Phutti prices at Rs 9,500 to Rs 11,000 per 40kg. In Sindh, cotton rate was Rs 19,700 to Rs 20,300 per maund, while in Punjab it ranged from Rs 20,000 to Rs 22,000 per maund. KCA increased rs. 1600 to at Rs. 20,800 per maund, and PSF surged rs.8 to at 373 pkr/kg.
Local Yarn Market:
(The local yarn market is expected to remain firm and upward due US dollar trend plus the increased price of local cotton)
1- The prices of yarn jumped by 5 % approximately 15~20 Rs/lbs. added due to the hiking trend of the US dollar, the decline of the Pakistani rupee & high energy cost.
2- Most mills sold yarn for 30 days and offered onward deliveries.
3- The prices of PSF were increased by IFL Rs. 3/kg on August 31 in the domestic market and are expected to increase Rs 3~5 more by next week.
4- The Faisalabad market is good in demand, with normal levels of business activity..
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3800 – 3900 | 500 – 510 |
| 20/1 Carded Weaving | 3850 – 4050 | 505 – 530 |
| 30/1 Carded Weaving | 4000 – 4350 | 525 – 570 |
| 30/1 PC Carded Weaving 52:48 | 3250 – 3400 | 425 – 445 |
| 40/1 Combed Compact Weaving | 4800 – 4950 | 630 – 650 |
| 60/1 Combed Compact Weaving | 6600 – 6800 | 865 – 895 |
| 80/1 Combed Compact Weaving | 8500 – 8700 | 1115 – 1145 |
| 40/1 CVC Carded Weaving 60:40 | 3800 – 3950 | 500 – 520 |
Export Yarn Market:
(The China Yarn Expo Autumn 2023 saw slow business due to a price gap between buyers and suppliers. Pakistani suppliers increased their prices due to a sharp rise in cotton prices. The European export yarn market showed decent business activity. The market may see more activity from China and Europe in the coming weeks, and it seems that the China market will indulge towards buying)
1- The export yarn market was slow during the China Yarn Expo Autumn 2023, and business remained slow due to a price gap between buyers and suppliers.
2- Pakistani suppliers increased their prices due to a sharp rise in cotton prices in Pakistan.
3- Customers may increase prices to buy yarn according to the current situation.
4- The market may see more activity from China and Europe in the coming weeks.
5- The European export yarn market showed decent business activity as customers came to the market and floated a handsome number of inquiries.
6- Suppliers will remain firm in their prices, and the increase in currency didn’t impact exporters because of other multiple cost factors that put the industry in a critical situation.
7- It seems that the China market will behave slowly or gradually lower towards buying..
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Local Fabric Market:
(For coming week, we expect further hike in prices for local fabric market, due to continuous rupee depreciation against US dollar)
1- The week started with uncertainty, due to which limited trading activity reported for both narrow and wider-width fabrics. However, buyers only booked those orders which were urgent in nature, due to upward price trend throughout the week.
2- Weavers raised their prices on daily basis, owing to continuous dollar appreciation against Pak rupee.
3- Weavers extended their booking level till end of September’2023/early October’2023 for narrow-width fabrics and mid Nov / end Nov for wide-width fabrics.
4- Conversion-based loom suppliers increased their conversion rate, due to increase in production cost as compared to last week, though they are hungry for orders.
Export Fabric Market:
(Export fabric market remained mixed with limited buying. Asking prices are firm with upward tendency. USA and European customers also discussing limited orders as well as placing only few orders)
1- Export fabric far eastern and Asian markets remained slow with limited business activity.
2- The demand is not improving from the buyers end hence suppliers are struggling very hard to fill their production capacities.
3- Asking prices remained firm with upward tendency due to increase cost of production.
4- Suppliers for narrow width are booked till end of Sep and offering mid Oct onward deliveries.
5- The USD is not stopping any where as it is continuously on rise.
6- Limited number of inquiries were received from European and USA buyers resultant limited buying during the week.
7- Wider width suppliers are also increasing their prices due to hike in yarn prices and increase in cost of production.
8- Suppliers are booked till mid of end of Oct and offering early ~ mid of Nov onward..
| Local and Export Fabric Prices | ||||||||||||
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Bed Linen and Towel:
(Home textile business remain stable during the week and expected to improve in coming months)
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 mid of Sept as stores still have a lot of stocks.
2- The factories are running at between 55- 60% 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 moderate demand from the US and EU markets, overall garment manufacturers in Pakistan are operating at average capacity and waiting for orders to fill their space; nonetheless, there is some hope that certain leading garment companies have begun placing orders with chosen units)
1- Pakistani garment units 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- A few brands are also developing new products for the FW24 season. Factories have begun to re-hire their daily wage labor force. At the same time, some textile firms are still recruiting workers.
3- Some of the knitting producers have recently received good orders from retail brands.
4- Overall, factories have delivery accessible 90 to 100 days after order confirmation.
5- The denim market leaders are hopeful as they are working on new sustainable developments since the market’s growth will be driven by demand for sustainable denim fabric, and ongoing technological advancements in laser to cut down water costs.
Crude Oil:
1- Crude Oil prices opened at USD 80.10 a higher level as compared to last week’s closing figures. This week, crude oil prices showed upward sentiment and closed on the higher side.
2- On the last day of the week, Crude Oil prices closed at USD 85.55 with an increase of USD 5.45 as of the opening figure of the week..
| Opening of Week | Closing Of Week | Change | |
| Price | 80.10 | 85.55 | 5.45 |
Exchange Rate:
1- Last week value of the Pak rupee depreciated against the US Dollar, and other major currencies showed a mixed trend in both interbank and open markets.
2- At the end of the week, the Euro closed on a negative note with a figure of 1.07 and the British Pound also closed on a negative note with a figure of 1.25 against USD.
| Selling | Buying | |
| LC Sight | 304.51 | 304.46 |
| LC 120 Days | 299.07 | 299.02 |
| Open Market | 308.81 | 302.20 |
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 an upward trend in a whole week and closed on positive notes.
2- On the last day of the week, OCT 2023 closed at 89.61 with an increase of 254 points.
3- On the last day of the week, DEC 2023 closed at 89.95 with a rise of 308 points.
4- On the last day of the week, MAR 2023 closed at 89.77 with a higher of 304 points..
Liver Pool Indices:
1- Liverpool Index A opened at 96.10 a higher level than the previous week’s closing figure.
2- This week Index “A” showed an upward trend and closed positively.
3- At the last day of the week, LPI “A” closed at 97.95 with an increase of 185 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 96.10 | 97.95 | 1.85 |
