PAKISTAN LOCAL COTTON MARKET:
(Domestic and international cotton prices declined due to a surplus in cotton supply and global economic factors like inflation and currency devaluations)
1- The domestic cotton market experienced a decline in both prices and activity, primarily driven by a substantial influx of cotton crops, which exerted downward pressure on prices. Meanwhile, international prices followed suit, as they were influenced by global inflation and currency devaluations.
2- Due to sharp decline of NYCF price and strengthening of rupee , constrained the seller for panic selling in early session. However, the market go stable in evening and seller kept silent. Phutti arrival may get slower on prevalent rates and market is likely get stable here.
3- It seems that prices will remain on same levels due to handsome arrival of cotton and low demand of the yarn orders locally and internationally.
4- China’s economy is in a state of total disorder. Heavily dependent on exports, China has seen them drastically decline as global inflation limits the purchasing power of other countries. Their previous economic stimulus, debt fueled investment in infrastructure, has peaked. Therefore, their remaining source of demand is household consumption wherein they must convince citizens to spend rather than save. In an effort to do so, five of the country’s largest banks cut interest rates on Friday. While Beijing lifted home purchasing restrictions for the first time since 2021. Seeing this as potentially expanding Chinese imports, including cotton, markets welcomed the news. However, high unemployment could remain an obstacle to these efforts.
5- The total profits of industrial enterprises in China above the designated size reached 3,943.98 billion yuan between January and July this year—down by 15.5 per cent year on year (YoY) and a fall of 1.3 percentage points narrower than that between January and June
6- Last week, cotton prices in Punjab and Sindh decreased around 3000~3500 per maund, ranging from Rs 17,000 to Rs 18,500 per maund, (USC 0.68~0.74 lbs) with Phutti prices at Rs 8,500 to Rs 9,000 per 40kg. In Sindh, cotton rate was Rs 17,000 to Rs 18,000 per maund, while in Punjab it ranged from Rs 18,000 to Rs 18,500 per maund. KCA dropped by Rs. 2,300 to reach Rs. 18,000 per maund, while PSF increased by Rs. 5, reaching 378 PKR/kg.
Local Yarn Market:
(The Local yarn market is expected to remain slow as per US dollar trend and prices of local cotton plus demand from end customer)
1- The local yarn market is soft from the start of this week. Prices dropped around Rs. 4~5/lbs due to the descending trend of the US dollar and NYCF.
2- Most mills sell 3 weeks of yarn & spinners are interested in selling yarn at current prices.
3- The prices of PSF were increased by IFL Rs. 3/kg on September 4 in the domestic market and are expected to remain stable.
4- The Faisalabad market is virtuous in demand, with regular levels of business activity.
|Count||Price in Pak Rupees / 10 LBS||Price US$/Bale|
|16/1 Carded Weaving||3750 – 3880||495 – 510|
|20/1 Carded Weaving||3780 – 4000||495 – 525|
|30/1 Carded Weaving||3880 – 4200||510 – 550|
|30/1 PC Carded Weaving 52:48||3200 – 3330||420 – 435|
|40/1 Combed Compact Weaving||4750 – 4900||625 – 645|
|60/1 Combed Compact Weaving||6500 – 6700||855 – 880|
|80/1 Combed Compact Weaving||8400 – 8550||1105 – 1125|
|40/1 CVC Carded Weaving 60:40||3750 – 3900||495 – 510|
Export Yarn Market:
(Export Yarn market remained under nominal business activity as customers kept in market and checking prices. Order materialization remained a bit slow due to uncertainty)
1- The export yarn market remained under nominal business activity. customers floated handsome numbers of enquiries against which orders were materialized where customer achieved their required target prices.
2- Pakistani suppliers remained firm in asking their prices. However, they showed flexible tone upon receipt of firm bids.
3- It is expected that there will be good business activity in days to come as European customers are also back from holidays and there has been good demand from there as well.
4- Chinese customers are already placing orders actively and enquiries are under discussion, so, we might see good business in days to come.
5- Suppliers will remain firm in their prices along with appreciation of currency.
|Export Yarn Prices|
Local Fabric Market:
(For the coming week, we may expect an improved activity for both narrow & wider-width fabrics for local fabric market)
1- In the current week under review, the week started with uncertain market conditions, which resulted in limited trading activity for both narrow and wider-width fabrics. As a result, the week closed with slow sentiments.
2- Fabric prices either remained firm or moved upward due to high volatility in dollar-rupee parity, for both narrow & and wider-width fabrics.
3- Buyers booked only those orders that were urgent in nature. Weavers extended their booking level in narrow width till early October and early November ~mid-Nov for wide-width fabrics.
4- Suppliers slightly increased their conversion rate or remained firm in their asking, as compared to last week.
Export Fabric Market:
(Average business activity was seen from Far Eastern markets in fabric exports. Prices remained stable and firm. European and USA buyers have resumed their work and actively sharing their inquiries)
1- Export fabric market remained slow during the week under review.
2- Customers from China, Korea, Vietnam, Thailand, Bangladesh were remained in the market but just sharing inquiries for price checking resultant limited business was reported.
3- Asking prices are stable to firm due to uncertain market situation.
4- Suppliers are booked for next 3~4 weeks and offering onward deliveries.
5- European and USA buyers are back from their summer holidays. They were actively sending their inquiries however limited buying was noticed.
6- Wider width suppliers have extended their sales till end of Oct and offering mid Nov onward deliveries
|Local and Export Fabric Prices|
Bed Linen and Towel:
(For Home textile, White institutional business will increase and there is a lot room in white business to expand specially for GCC ) Gul cooperation council) market)
1- Current week’s market situation in Home textiles was on upward spiral. It had been observed that Faisalabad industry got orders and their bookings are quite satisfactory but Lahore , Multan and Karachi sectors have not seen such trend.
2- The reason may lies in the fact that Faisalabad mills are offering very competitive and low prices as compared to other Lahore / Karachi sectors
(The garment industry has become challenging due to a lack of market demand. However, factories manage to get enough orders to cover their costs)
1- Overall, it is expected that Pakistan’s garment industry will 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 a positive market sentiment in Pakistan.
3- Factories have space to give deliveries beginning in mid-November 2023, owing to increased demand from several European clients and some from the US market, particularly from some large stores.
4- Denim sector seems to have less demand from UK and European customers. The cost of living and uncertainty disincentive their spending.
1- Crude Oil prices opened at USD 86.69 with higher level 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 price closed at USD 87.51 with an increase of USD 0.82 cents as of the opening figure of the week.
|Opening of Week||Closing Of Week||Change|
1- In the last week values of the Pak rupee depreciated against US Dollar’s, 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 positive note with a figure of 1.07 and the British Pound closed on a negative note with a figure 1.24 against USD.
|LC 120 Days||298.10||298.05|
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 84.41 with a decrease of 319 points.
3- On the last day of the week, DEC 2023 closed at 85.91 with a drop of 285 points.
4- On the last day of the week, MAR 2023 closed at 86.09 with a lower of 260 points.
Liver Pool Indices:
1- Liverpool Index A was opened at 98.05 a higher level than the previous week of closing figure.
2- In this week Index “A” showed a downward trend and closed on the opposing side.
3- On the last day of the week, LPI “A” closed at 97.40 with a decrease of 65 points..
|Opening of the Week||Closing of the Week||Change|