Pakistan Local Cotton Market:
(The worldwide cotton trade was affected by inflation and reduced interest in textiles, affecting the global markets. Same scenario was seen in local market too. Predictions suggest a persistent market downturn due to the anticipated lack of increased demand in the upcoming period)
1- The Local cotton market has stayed sluggish as buyers showed little interest due to financial constraints and reduced demand across the textile sector. The prolonged lack of demand reflects the direct impact of inflation on consumer purchasing ability, resulting in a stagnant market for the past few weeks.
2- Rising energy expenses have led buyers to purchase only immediate and limited quantities. Mills, facing uncertainty with long-term deals, aim to avoid excessive stock due to financial concerns.
3- At the end of the week, the international cotton market witnessed positive shifts. US cotton saw an upward trend, reaching the upper circuit, influenced by enhanced Chinese textile exports and a devalued dollar.
4- The surge in China’s November cotton exports signaled a revival in demand, resulting in a positive impact on the market.
5- In the 2023/24 U.S. cotton forecast, lower production, mill use, and ending stocks are anticipated, primarily due to decreased Texas crop. Globally, lower consumption is projected, notably in China and Turkey, impacting the balance sheet with higher ending stocks, notably in China, resulting in a substantial increase in total global stocks.
6- The government planned to purchase one million bales from cotton farmers via TCP if the price of Phutti per 40 kg fell below Rs 8,500 to stabilize prices. However, the government’s failure to fulfill this commitment raises concerns of reduced cotton cultivation by farmers next year.
Local Yarn Market:
(The market is predicted to remain lax and burdened with sales due to low demand and an excess of yarn)
1- The local yarn market remained slow and sturdy in business activity with lesser demand plus deterioration in Siro yarn exports is also putting pressure on coarse counts.
2- Mills find it difficult to accumulate stocks due to markup and attempts to minimize stocks
3- The prices of PSF have stayed stable in the domestic market and are expected to remain so next week.
4- The market in Faisalabad is mild, with some business activity, residual cash flow issues, and some PV sales at adapted bids…
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3100 – 3250 | 440 – 460 |
| 20/1 Carded Weaving | 3300 – 3400 | 465 – 480 |
| 30/1 Carded Weaving | 3500 – 3675 | 495 – 520 |
| 20/1 CM | 3800 – 3950 | 540 – 560 |
| 30/1 PC Carded Weaving 52:48 | 2900 – 3070 | 410 – 435 |
| 40/1 Combed Compact Weaving | 4300 – 4400 | 610 – 625 |
| 60/1 Combed Compact Weaving | 6200 – 6350 | 880 – 900 |
| 80/1 Combed Compact Weaving | 8350 – 8450 | 1180 – 1195 |
| 40/1 CVC Carded Weaving 60:40 | 3550 – 3650 | 500 – 515 |
Export Yarn Market:
(Export yarn market remained under nominal business activity as customers form all regions floated handsome number of enquiries against which order materialization was also witnessed. We might see improvement in business in days to come on expectation of better prices as market has already been bottomed out)
1- Export yarn market remained showed improved business activity.
2- Customer kept on checking prices but order materialization was slow. Only few orders were placed where customer found their desired price levels.
3- There has been positive development that customers are now discussing their firm demands and it is expected that orders will also be placed in days to come.
4- Moreover, suppliers are also firm now as market has already touched its bottom and towards the phase of recovery.
5- Overall cotton in domestic and international market remained stable.
6- However, cost of production in Pakistan has been increased and at the same time, USD against PAK RUPEE Is appreciating which is another worry for exporters.
7- Chinese customers floated improved number of inquiries against which order materialization was improved as compared to previous weeks
8- European customers floated better number of inquiries this week. Some deals were matured as well where customers achieved their target prices. It is expected that business will remain better in days to come.
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Local Fabric Market:
(For the coming week, we expect slow sentiments to prevail for both narrow & wider-width looms with firm fabric prices)
1- In the current week under review, the local fabric market slowed a lackluster trend throughout the week for both narrow and wider-width fabrics.
2- Local finishers shared inquiries and also booked limited orders for both narrow and wider-width fabrics and consequently week closed with limited activity for both narrow and wider-width fabrics.
3- Weavers remained firm in their asking prices if compared with last week owing to firm yarn prices for both narrow & wider-width fabrics.
4- The majority of the weavers booked their narrow-width looms till early January – Mid-January ’2024 and also have coverage of their wide-width looms until the end of January 2024.
Export Fabric Market:
(While the flow of inquiries from all markets; including the Far East, Europe, and the USA was significantly enhanced, only a small number of orders were booked because the target prices were significantly lower than the asking prices. Prices are still low and are predicted to stay that way in the coming days)
1- The inquiry flow was much improved as compared to last couple of weeks.
2- A significant number of queries were exchanged by customers from China, Korea, Indonesia, Bangladesh, and Japan; but, because their target prices were significantly lower, the supplier was only able to finalize few orders at the customer’s desired price points.
3- Asking prices were lower about 2~3% during the week due to soft yarn prices and less demand however this could not attract most of the customers, as they are expecting another 4~5% prices drop down in days to come.
4- Suppliers have orders for the next two to three weeks and can start delivering in mid-January onward.
5- This week, a few Japanese customers were in Multan, Pakistan, to discuss plans for future orders.
6- Although there was a good flow of inquiries from the US and European markets, the order sizes were modest.
7- Only few orders were reported because the target prices were roughly 6 ~ 8% less than the asking prices.
8- Suppliers are getting ready for the upcoming Heimtex, which will take place in Germany in early January.
9- Wider width suppliers are in a comfortable zone because they have bookings for the next five to six weeks and can offer deliveries starting in mid-February.
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Bed Linen and Towel:
(A relatively dynamic business activity trend has been observed with Mid tier as well as High end Home textiles manufacturers)
1- Increased inquiries due to Pre bookings for Spring 2024 are in float at various suppliers. USD stability has a significant effect on Pricing as well. Bookings are also being made at Mid tier as well as high end suppliers.
Garments:
(Generally, garment demand is slow due to uncertain economic situations around the globe. Negligible orders received from EU and Uk. The denim sector is optimistic about getting more orders during 4th quarter for sustainable products)
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- As a result of consumers cutting back on spending due to economic uncertainty, demand for clothing has decreased in several nations. Nonetheless, we are expecting orders from the EU and UK markets following Christmas due to a strong feeling that the existing stock will be sold out.
3- At the same time, factories anticipate BULK ORDERS against the developments they made in the 3rd quarter of 2023. Factories are offering Early Feb 24 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.
Crude Oil:
1- Crude Oil prices opened at USD 73.04 with lower level as compared to last week’s closing figures. in this week, crude oil prices showed a downward trend and closed on the lower side by the end of the week despite of jump in the last session.
2- On the last day of the week, Crude Oil prices closed at USD 71.23 with a decrease of 181 cents as of the opening figure of the week.
| Opening of Week | Closing Of Week | Change | |
| Price | 73.04 | 71.23 | -1.81 |
Exchange Rate:
1- In the last week values of the Pak rupee appreciated against the 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 negative note with a figure of 1.07 and the British Pound also closed on a negative note with a figure 1.25 against USD.
| Selling | Buying | |
| LC Sight | 282.61 | 282.56 |
| LC 120 Days | 271.54 | 271.49 |
| Open Market | 287.40 | 281.21 |
New York Cotton Future:
1- The New York Cotton futures started the week lower than the previous week’s closing figures. NYCF showed a slight upward trend and closed on the higher side. The closing figures for the week were:
2- On the last day of the week, MAR 2024 closed at 81.44 with an increase of 276 points.
3- On the last day of the week, MAY 2024 closed at 82.04 with a rise of 262 points.
4- On the last day of the week, JUL 2024 closed at 82.45 with a higher of 237 points.
5- On the last day of the week, OCT 2024 closed at 78.70 by a surge of 100 points.
Liver Pool Indices:
1- Liverpool Index A opened at 90.30 a higher level than the previous week’s closing figure.
2- In this week Index “A” showed mixed sentiment and closed on the lower side by the end.
3- On the last day of the week, LPI “A” closed at 89.95 with a decrease of 35 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 90.30 | 89.95 | -0.35 |
