Pakistan Local Cotton Market:
(The local cotton market was active despite a robust cotton crop arrival and currency appreciation, but with low international cotton prices, sentiment leaned towards maintaining softer local prices, likely leading to a future decline)
1- The local cotton market showed good activity beside of that the handsome arrival of cotton crop and currency appreciations. Meanwhile, international cotton prices remained relatively low. Consequently, the prevailing sentiment favored maintaining softer price levels. Considering the ongoing low sentiments, it appears that prices in the local cotton market may experience a decline in the upcoming days.
2- Pakistan’s cotton industry is experiencing a notable surge in arrivals, as reported by the Pakistan Cotton Ginners Association (PCGA). This growth is a positive sign for Pakistan’s economy, given its prominent position as a top cotton-producing country. Cotton and textile exports are significant contributors to the nation’s economic stability and foreign exchange earnings. This surge reflects the industry’s dedication and bodes well for Pakistan’s global standing in the textile market, supporting employment and economic growth.
3- China’s economy struggles with 5% growth, a housing crisis, and high unemployment. Foreign investors are avoiding China, leading to job losses. Rising labor costs, forced labor, and geopolitical tensions redirect investments to Southeast Asia. China aims for domestic growth to revive its economy.
4- In the cotton market, net sales for 2023/2024 increased significantly, up 57% from the previous week and 67% from the prior 4-week average. Major increases were seen for Vietnam, China, Mexico, Bangladesh, and Turkey, with some reductions for Singapore and South Korea. Additionally, net sales of 5,100 RB for 2024/2025 were reported for Pakistan and Mexico. Exports of 150,700 RB increased by 28% from the previous week, primarily destined for China, Mexico, Pakistan, Turkey, and Bangladesh.
5- Last week, cotton prices in Punjab and Sindh decreased around 1000~1500 per maund because of good arrival of cotton crop and Usd deprecations, price ranging from Rs 16,000 to Rs 19,000 per maund,
(USC 0.67~0.79 lbs) with Phutti prices at Rs 7,500 to Rs 8,500 per 40kg. In Sindh, cotton rate was Rs 16,000 to Rs 18,200 per maund, while in Punjab it ranged from Rs 16,800 to Rs 18,900 per maund. KCA decreased by Rs. 500 to reach Rs. 18500 per maund, while PSF rose to at 383 PKR/kg.
Local Yarn Market:
(The local yarn market is anticipated to remain unhurried as per the US dollar trend Meanwhile, local cotton prices and end customer demand will also have an impact)
1- The local yarn market had a slow but steady activity with some inquiries. Prices dropped by Rs. 4~5/lbs due to week trend of US dollar while local cotton is stable.
2- Most mills sell 2~3 weeks of yarn & interested in selling yarn at existing prices against cash payments.
3- The prices of PSF were increased by IFL Rs. 5/kg on September 18 in the domestic market and are expected to firm by next week.
4- The Faisalabad market is slow in demand, with limited levels of business activity.
|Count||Price in Pak Rupees / 10 LBS||Price US$/Bale|
|16/1 Carded Weaving||3500 – 3700||480 – 510|
|20/1 Carded Weaving||3550 – 3800||490 – 520|
|30/1 Carded Weaving||3700 – 4050||510 – 555|
|30/1 PC Carded Weaving 52:48||3000 – 3250||410 – 445|
|40/1 Combed Compact Weaving||4700 – 4800||645 – 660|
|60/1 Combed Compact Weaving||6400 – 6550||880 – 900|
|80/1 Combed Compact Weaving||8400 – 8550||1155 – 1175|
|40/1 CVC Carded Weaving 60:40||3750 – 3900||515 – 535|
Export Yarn Market:
(Export yarn market remained under mixed sentiment as European customers have shown interest in buying whereas China market was slow. Firm price trend was witnessed during the week due to stable cotton prices)
1- The export yarn market showed nominal business activity throughout the week.
2- Customer floated good numbers of inquiries against which order materialization was slow.
3- Supplier remained firm and stable in asking their prices due to stable tone of cotton prices.
4- Customers may increase prices to buy yarn according to the current situation.
5- Ther eis good business activity expected from both China and Europe sector in the coming weeks.
6- The European export yarn market showed decent business activity as customers came to the market and floated a handsome number of inquiries but booked less yarn.
7- It seems that the China market will behave slowly or gradually toward buying.
|Export Yarn Prices|
Local Fabric Market:
(The local fabric market remained good with average business activity. Suppliers are firm on their asking prices whereas customers are booking only urgent orders)
1- The local fabric market flow of inquiries improved for both narrow & wider-width fabrics, but week closed with limited trading activity.
2- Rupee gaining its lost ground on consistent basis and buyer is expecting that fabric prices should ease down but contrary to its expectations weavers did not reduce their prices and resultantly limited business reported for both narrow & wider width fabric.
3- Buyers are only booking urgent orders.
4- Weavers booked in narrow width till mid-October and have coverage of their wider-width looms till early November to Mid-November’23
5- Suppliers remained firm in their conversion rate throughout the week for both narrow and wider-width looms..
Export Fabric Market:
(Export fabric market for Far Eastern markets is not performing well however EU and USA customers were engaged to place orders mainly in wider width fabric. Prices for narrow and wider width remained stable)
1- Overall export fabric market remained depressed with significant decline of orders from Far Eastern markets.
2- Suppliers are chasing their customers for possible of each and every inquiry to extend their sales as long as possible.
3- Asking prices were firm due to currency appreciation as well as slow downward trend of local raw material prices.
4- Generally suppliers are booked for next 3~4 months and offering end Oct ~ Early Nov onward deliveries.
5- European and USA markets are comparatively responding better as suppliers have received decent quantities mainly in wider width fabric.
6- Prices for wider width remained stable during the week.
7- Suppliers are booked till mid of Nov and offering end Nov onward deliveries.
8- Due to increase in cost of production, suppliers have revised their costing parameters both for narrow and wider width fabric and struggling to get better prices from their customers…
|Local and Export Fabric Prices|
Bed Linen and Towel:
(Home textile sector is performing well as some of the suppliers have received good orders from EU and USA. It is expected that suppliers will receive good orders against their new development if the US dollar remain stable)
1- Home textiles division is observing same trend as previous week. US Dollar fluctuation and continued depression is compelling the sellers to rework on pricing and holding inquiries. On the other hand, buyers are already quoting very competitive targets which are very difficult to meet in current scenario.
2- However, bookings against stocks and bookings against regular market qualities are observed and business activity is seen in this regard.
3- New developments in value added sector are being processed with an increase interest of buyers which is a hopeful sign ( subject to the political and US dollar stability in future)
(For the garment, the worldwide market is still struggling to recover from inflation, but manufacturers are optimistic about the next seasons)
1- Garment demand is declining, and meeting manufacturing capacity based on current order intake is problematic. Suppliers are aggressive in capturing orders and discussing every possible way to confirm.
2- Many countries have seen a drop in garment demand as people cut back on spending owing to economic uncertainties.
3- At the same time, factories anticipate BULK ORDERS against the developments they made in the 2nd quarter of 2023. Factories are offering Mid-Nov 23 onward deliveries.
4- Sustainability is critical for reducing environmental impact, improving working conditions, meeting customer demand, increasing resource efficiency, and future-proofing the industry.
5- The overall situation of the Denim market seemed slow paced and affording labour with the increasing inflation and fuel prices might be a new challenge for the factories in the coming time.
1- Crude Oil prices opened at USD 91.48 a higher level as compared to last week’s closing figures. in this week, crude oil prices showed downward sentiment and closed on the lower side.
2- On the last day of the week, Crude Oil price closed at USD 90.03 with a decrease of USD 1.45 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 appreciated against US Dollar’s, 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 the figure of 1.07 and the British Pound also closed on a negative note with a figure 1.22 against the USD..
|LC 120 Days||282.99||282.94|
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.
2- NYCF showed mixed sentiment during the week and closed on negative notes.
3- On the last day of the week, OCT 2023 closed at 84.04 with a decrease of 150 points.
4- On the last day of the week, DEC 2023 closed at 85.91 with a drop of 109 points.
5- On the last day of the week, MAR 2023 closed at 86.75 with a lower of 114 points.
Liver Pool Indices:
1- Liverpool Index A opened at 98.50 a higher level than the previous week’s closing figure.
2- In this week Index “A” showed a mixed 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 110 points.
|Opening of the Week||Closing of the Week||Change|