Pakistan Local Cotton Market:
(The local cotton market saw reduced activity due to a strong Pakistani rupee and ample cotton supply, while international prices stayed high thanks to China’s interest in US cotton. However, a global slowdown due to hyperinflation is anticipated, likely affecting the textile industry in the near term)
1- The local cotton market experienced reduced activity due to the strengthening of the Pakistani rupee against the US dollar and a bountiful supply of cotton, which deterred potential buyers for buying decision.
2- In contrast, international cotton prices remained relatively high, as China displayed interest in purchasing US cotton. Therefore, it appears that this situation may have only a short-term impact, and US cotton is expected to maintain its current price levels with no significant fluctuations.
3- Global demand appears to be sluggish in comparison, primarily due to hyperinflation occurring worldwide. This is expected to result in a more moderate consumer market in the near future, which is likely to have a notable impact on the textile industry.
4- Cotton output for the current season is robust with an 80% increase in the first two months, offering hope for the struggling textile industry. Cotton plays a vital role, supporting 8% of GDP and nearly 60% of exports, but the industry is operating at half capacity, and substantial imports are still needed.
5- It was learnt that textile industry is operating at half capacity in hope of comeback. The country’s requirement for imported cotton is around 3.5 million bales to 4 million bales in 2023 while Pakistan is yet to receive 2.2-2.5 million bales soon against previous import orders.
6- Last week, cotton prices in Punjab and Sindh remained same with lower/soft pace because of good arrival of cotton crop and Usd deprecations, price ranging from Rs 16,500 to Rs 18,500 per maund, (USC 0.67~0.77 lbs) with Phutti prices at Rs 6,500 to Rs 8,500 per 40kg. In Sindh, cotton rate was Rs 16,500 to Rs 17,800 per maund, while in Punjab it ranged from Rs 17,700 to Rs 18,500 per maund. KCA decreased by Rs. 200 to reach Rs. 17700 per maund, while PSF dropped to at 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 remained stable with limited inquiries. Prices dropped by Rs. 2~3/lbs due to the reducing trend of the US dollar while local cotton is constant.
2- Most mills sold yarn for 30 days & further interested in selling yarn at existing prices.
3- The prices of PSF were decreased by IFL Rs. 5/kg on September 25 in the domestic market and are expected to steady by next week.
4- The Faisalabad market is normal in demand, with consistent levels of business activity.
|Count||Price in Pak Rupees / 10 LBS||Price US$/Bale|
|16/1 Carded Weaving||3490 – 3700||490 – 515|
|20/1 Carded Weaving||3540 – 3800||495 – 530|
|30/1 Carded Weaving||3700 – 4000||515 – 560|
|30/1 PC Carded Weaving 52:48||2980 – 3220||415 – 450|
|40/1 Combed Compact Weaving||4700 – 4800||655 – 670|
|60/1 Combed Compact Weaving||6400 – 6535||895 – 915|
|80/1 Combed Compact Weaving||8400 – 8530||1175 – 1190|
|40/1 CVC Carded Weaving 60:40||3720 – 3870||520 – 540|
Export Yarn Market:
(Export yarn market remained under nominal business activity as customers have floated handsome numbers of enquiries against which order confirmation remained medium. It is expected that customer will place good quantity orders in days to come due to acceptability of prices)
1- The export yarn market showed minimal business activity throughout the week .
2- Customer floated good numbers of enquiry against which order materialization was normal.
3- Supplier remained firm and stable in asking their prices due to stable tone of cotton prices.
4- It is expected that customers will start buying in days to come due to acceptability of current prices levels.
5- Good business activity is expected from China and Europe sector in the coming weeks.
6- The European market floated handsome numbers of enquiries against which order materialization was good too.
7- It seems that the Chinese customers will place decent orders after coming back from their holidays.
|Export Yarn Prices|
Local Fabric Market:
(Suppliers remained firm in their conversion rate throughout the week for both narrow and wider-width looms. Customer booked only urgent orders as they are expecting further correction in prices soon)
1- In current week under review the local fabric market remained steady and firm for both narrow & wider-width fabrics and resultantly week closed with limited trading activity.
2- PKR continue to gain its lost ground therefore buyer is expecting correction in fabric prices but weavers slightly reduced their asking prices due to which buyers booked their urgent requirements only and resultantly limited business reported for both narrow & wider width fabrics.
3- Major weavers have coverage of their narrow width looms till end-October and also have coverage of their wider-width looms till 3rd week November’23 and offering onward deliveries.
Export Fabric Market:
(Far Eastern and USA market remained slow however European market was little bit active. Prices were stable and firm during the week)
1- Slow market sentiment was seen in export fabric market as Asian and Far Eastern customers are now showing interest in buying.
2- Asking prices remained firm during the week. About 2% prices raised due to depreciation of USD against PKR.
3- Suppliers are booked till 3rd week of Oct and offering end Oct ~ early Nov onward deliveries.
4- European customers were little bit active as they have booked limited quantity of wider width fabric mainly however USA market remained slow.
5- Suppliers are offering end Nov onward deliveries.
6- Prices for wider width remained stable and firm.
|Local and Export Fabric Prices|
Bed Linen and Towel:
(The Home textile trend is same as previous one. USD kept depreciating resulting in a hold at current bookings and pricing. USD stability will improve the situation. However , business is observed in regular qualities as well as against block bookings / inventories with large suppliers)
1- Home textiles division has seen status quo as previous one. Inquiry flows have increased but due to instability in Dollar rate is a hindrance in locking prices.
2- Target prices coming from customer were already hard to meet for suppliers and dollar depreciation has made this more difficult to make new bookings.
3- However, some big suppliers have maintained their bookings due to large fabric inventories and greater holding power. Further to this , bookings and orders were also confirmed in regular programs with large suppliers,.
(While the garment industry as a whole is struggling, certain European and American brands and stores are expecting orders to fill factory capacities)
1- Overall, Pakistan’s apparel industry is experiencing uneven commercial activity, manufacturers are unable to receive enough orders to meet their full production capacity. Some factories have received orders from export customers and are filling their capacity.
2- Rising costs, competition from other regions, and changing consumer preferences have all posed obstacles to Pakistan’s garment industry. However, the industry has made considerable advances in modernization and quality.
3- Buyers placed some orders, but in small amounts rather than in bulk, as they had previously. The good news is that clients continue to place new FW24 developments, which raise a ray of light in the future.
4- Overall, factories have delivery accessible 90 to 100 days after order confirmation.
5- Presently, consumer interest seems to be relatively stable, with minimal fluctuations. Luxury brands are vigorously promoting denim through fashion shows and innovative projects, showcasing a spike in interest.
1- Crude Oil prices opened at USD 89.68 with lower level as compared to last week closing figures. In this week, crude oil price rose in next two sessions and later showed downward trend till closing, hence closed on upper side by the end of week.
2- In last day of the week, Crude Oil price closed at USD 90.79 with increase of USD 1.11 cents as of opening figure of week.
|Opening of Week||Closing Of Week||Change|
1- In last week values of Pak rupee appreciated against US Dollar’s, other major currencies showed mix trend in both interbank and open markets.
2- At the end of week, Euro closed on a positive note with figure of 1.06 and British Pound closed on negative note with figure 1.22 against USD.
|LC 120 Days||276.22||276.17|
New York Cotton Future:
1- New York Cotton futures opened on higher level on Monday as compare to previous week’s closing figures. NYCF showed upward sentiment during the week, hence dropped on last session and closed on negative notes.
2- On the last day of the week, DEC 2023 closed at 87.15 with drop of 102 points.
3- On the last day of the week, MAR 2023 closed at 87.92 with lower of 84 points.
4- On the last day of the week, MAY 2023 closed at 88.50 with lower of 64 points.
Liver Pool Indices:
1- Liverpool Index A was opened at 96.95 a lower level than the previous week of closing figure.
2- In this week Index “A” showed an upward trend and closed on the positive side.
3- On the last day of the week, LPI “A” closed at 98.85 with an increase of 190 points.
|Opening of the Week||Closing of the Week||Change|