Pakistan Local Cotton Market:
(Inflation and waning interest in textile products had a significant impact on the international cotton trade, influencing global markets. Similar circumstances were observed in the local market. Forecasts indicate a prolonged downturn in the market owing to the expected absence of heightened demand in the forthcoming period)
1- The stagnant state of the local cotton market persists due to limited buyer interest caused by financial constraints and decreased demand within the textile sector. The continuous lack of demand directly correlates with inflation affecting consumers’ purchasing power, thereby creating a sluggish market that has remained unchanged for several weeks.
2- Stability in the rats of quality cotton witnessed. Business volume is limited. Due to the huge increase in energy, gas prices, the textile chain is suffering from severe crisis.
3- Indian spot prices (Shankar-6 quality) slipped from 87 to 85 cents/lb. In domestic terms, values fell from 56,700 to 55,000 INR/candy. The INR was steady near 83 INR/USD over the past month.
4- S. production reduced to 12.8 million bales would be our smallest crop since 2009. U.S. exports remained unchanged at 12.2 million bales. However, domestic use was lowered to 1.9 million. Subsequently, ending stocks fell slightly below expectations to 3.1 million bales. Similarly, world production lowered to 112.9 million bales would make it the smallest crop since 2015. Unfortunately, world use was reduced by a million and a half bales to 113.7 million, almost two million bales below expectations. As a result, world-ending stocks are projected to increase to 82.4 million bales.
5- Last week, cotton prices in Punjab and Sindh remained stable, limited business materialized in ranging from Rs 15,000 to Rs 18,000 per maund, (USC 0.67~0.77 lbs) with Phutti prices at Rs 8,500 per 40kg. In Sindh, cotton rate was Rs 15,000 to Rs 17,500 per maund, while in Punjab it ranged from Rs 16,000 to Rs 18,000 per maund. KCA was at Rs. 17,000 per maund and PSF remained unchanged at rs. 360 PKR/kg.
Local Yarn Market:
(The stagnant state of the local cotton market persists due to limited buyer interest caused by financial constraints and decreased demand within the textile sector. The continuous lack of demand directly correlates with inflation affecting consumers’ purchasing power, thereby creating a sluggish market that has remained unchanged for several weeks)
1- The local yarn market endured slow business activity with price resistance due to the government’s removal of the electricity relief granted until October.
2- Mills are under pressure in sales & cost of production and planning to curtail production at peak hours
3- The prices of PSF have stayed stable in the domestic market and are expected to remain so next week.
4- The Faisalabad market had good activity in fine cotton counts and was stable in PV yarns with normal demand.
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3050 – 3250 | 430 – 460 |
| 20/1 Carded Weaving | 3200 – 3350 | 455 – 475 |
| 30/1 Carded Weaving | 3450 – 3650 | 490 – 515 |
| 20/1 CM | 3750 – 3850 | 530 – 545 |
| 30/1 PC Carded Weaving 52:48 | 2900 – 3050 | 410 – 430 |
| 40/1 Combed Compact Weaving | 4275 – 4400 | 605 – 625 |
| 60/1 Combed Compact Weaving | 6200 – 6350 | 880 – 900 |
| 80/1 Combed Compact Weaving | 8350 – 8450 | 1185 – 1200 |
| 40/1 CVC Carded Weaving 60:40 | 3500 – 3600 | 495 – 510 |
Export Yarn Market:
(Export yarn market remained under improved business activity as customers remained in market and kept on sending several inquiries. Order materialization have been witnessed as customers has placed orders with selected suppliers with better prices)
1- Export yarn market remained under good business activity.
2- Customer have floated good numbers of inquiries against which order materialization was also good.
3- Suppliers showed their fullest interest to mature every inquiry they received and offered quite attractive prices.
4- Overall cotton in domestic and international market remained firm.
5- It is projected that prices has already touched the bottom and prices are recovering now. It is expected that market will improve further in days to come.
6- 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 handsome number of inquiries against which order materialization was good
8- It is expected that business activity will pick up as now customers are discussing new orders.
9- 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 activity to prevail in the absence of bulk inquiries)
1- The local fabric market remained lackluster for another week throughout the week for both narrow and wider-width fabrics.
2- Buyers floated inquiries but mostly were for price checking however booked limited orders for both narrow and wider-width fabrics after tough negotiation at reduced price levels.
3- Weavers slightly reduced their asking prices owing to the soft yarn prices for both narrow & wider-width fabrics.
4- Currently, the weavers booked their narrow-width looms until mid-January ’2024 and also have coverage of their wide-width looms until the end of January 2024 and offering onward deliveries.
Export Fabric Market:
(Average business activity was seen from Far Eastern, USA and European market. Prices were remained same as of last week. Customers will try to book their urgent orders in next week and then will go on Christmas and New Year holidays)
1- Flow of inquiry remains moderate during the week from Far Eastern customers.
2- Asking prices remained almost same as of last week.
3- Suppliers are struggling to finalize the orders as much as possible against the target prices which are about 6~8% lower than offered prices.
4- Currently suppliers are booked till mid of Jan and offering onward deliveries.
5- European and USA customers were active during the week both for narrow and wider width fabric however no considerable buying was noticed.
6- Most of the customers are in preparation of Heimtex fair held in Germany by early of Jan
7- Wider width suppliers are also making sample collections for coming Heimtex fair.
8- Suppliers are booked till mid of Feb ` End of Feb for wider width fabric and offering onward deliveries..
| Local and Export Fabric Prices | ||||||||||||
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Bed Linen and Towel:
(At the moment , despite a good flow of inquiries , order confirmations are mostly at Hold which is expected during Heimtex 2024. The main focus of all suppliers is development and preparation of Heimtex 2024 and further coarse of action in this sector by suppliers will be decided based on the results of Heimtex 2024)
1- Home textiles sector is observing good flow of inquiries from Europe . But order confirmation ratio is about 20% out of 100. Upcoming Heimtex in January 2024 will be a major event which can unfold a situation that will decide the course of business activity in Home textile sector. At the moment , all suppliers are completely focused on Heimtex preparations and meanwhile order confirmations against quoted prices are also expected during meetings.
Garments:
(Pakistan’s garment sector is facing a difficult scenario due to a lack of orders. The increasing cost of production is putting the industry in a more difficult position)
1- Overall Pakistan’s garment industry is facing uneven business activity, where factories are not getting enough orders to fill their 100% production capacities. Due to inflation, it has been observed that many retailers and brands have reduced their buying.
2- Normally, factories receive projection-based orders from large retailers, but there has been a slow sentiment in the market in the 4th quarter of 2023, one of the reasons being global inflation. For onward orders factories are offering End Feb 2024 deliveries.
3- In the garment industry, sustainability is critical for reducing environmental impact, improving working conditions, meeting customer demand, increasing resource efficiency, and future-proofing the industry.
Crude Oil:
1- Crude Oil prices opened at USD 71.32 with slightly higher level as compared to last week’s closing figures. in this week, crude oil prices showed mix trend and closed on slight higher by the end of week.
2- In last day of the week, Crude Oil price closed at USD 71.43 with an increase of USD 0.11 cents as of the opening figure of the week.
| Opening of Week | Closing Of Week | Change | |
| Price | 71.32 | 71.43 | 0.11 |
Exchange Rate:
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 negative note with figure of 1.09 and British Pound also closed on negative note with figure 1.27 against USD.
| Selling | Buying | |
| LC Sight | 282.15 | 282.10 |
| LC 120 Days | 271.43 | 271.38 |
| Open Market | 286.79 | 280.62 |
New York Cotton Future:
1- The New York Cotton futures started the week higher than the previous week’s closing figures. NYCF showed a downward trend and closed on the lower side. The closing figures for the week were:
2- On the last day of the week, MAR 2024 closed at 79.93 with a decrease of 207 points.
3- On the last day of the week, MAY 2024 closed at 80.69 with a drop of 187 points.
4- On the last day of the week, JUL 2024 closed at 81.17 with a lower of 170 points.
5- On the last day of the week, OCT 2024 closed at 77.57 by drop of 153 points..
Liver Pool Indices:
1- Liverpool Index A opened at 92.70 a higher level than the previous week’s closing figure.
2- In this week Index “A” showed a downward sentiment and closed on the lower side by the end.
3- On the last day of the week, LPI “A” closed at 91.30 with a decrease of 140 points
| Opening of the Week | Closing of the Week | Change | |
| Index A | 92.70 | 91.30 | -1.40 |
