Market Report- Pakistan 26 Dec 2023

Pakistan Local Cotton Market:
(People being less interested in textile products buying made a big difference in how much cotton was sold around the world. This affected markets everywhere, around the globe. Seems, market will stay slow for a while)

1- The local cotton market remains at a standstill due to a lack of buyer engagement stemming from financial limitations and reduced demand in the textile industry. This ongoing lack of interest is closely tied to inflation, impacting consumers’ buying abilities and contributing to a stagnant market that has shown no signs of improvement for several weeks.
2- The quality cotton prices have stayed steady, but there’s not much business happening. The textile industry is going through a tough time because energy and gas prices have gone up a lot, causing a big crisis along the textile chain.
3- The shortage of fabric is decreasing day by day, while textile factories are closing down or operating partially. However, there isn’t a significant decrease in stocks due to relatively low buying from textile mills.
4- China’s cotton imports soared past 300,000 tons, but cotton yarn imports declined, hitting 141,100 tons in Nov 2023, almost double the previous year. Cumulative cotton yarn imports reached 1.414 million tons by November, expecting a decrease to 1.53-1.55 million tons for the year due to reduced speculative orders impacting domestic transactions, despite stable supplies from Chinese-funded mills, maintaining a steady import decline.
5- Last week, cotton prices in Punjab and Sindh remained stable, limited business materialized in ranging from Rs 16,200 to Rs 18,400 per maund, (USC 0.70~0.79 lbs) with Phutti prices at Rs 8,500 per 40kg. In Sindh, cotton rate was Rs 16,200 to Rs 18,000 per maund, while in Punjab it ranged from Rs 16,400 to Rs 18,400 per maund. KCA was at Rs. 17,000 per maund and PSF remained unchanged at Rs. 360 PKR/kg.

Local Yarn Market:
(The local yarn market is predicted to remain under pressure due high cost of production & prices may even drop to the lowest point leading to cotton prices and demand from customers)

1- The local yarn market endured slow business activity with price resistance due to the government’s revocation 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 – 3200 435 – 455
20/1 Carded Weaving 3200 – 3350 455 – 475
30/1 Carded Weaving 3450 – 3650 490 – 520
20/1 CM 3750 – 3850 535 – 550
30/1 PC Carded Weaving 52:48 2950 – 3100 420 – 440
40/1 Combed Compact Weaving 4275 – 4400 610 – 625
60/1 Combed Compact Weaving 6200 – 6400 880 – 910
80/1 Combed Compact Weaving 8400 – 8600 1195 – 1225
40/1 CVC Carded Weaving 60:40 3500 – 3600 500 – 510

Export Yarn Market:
(Export Yan market remained moderate to firm with improved business activity. customers have placed orders with improved prices to get the required deliveries. European customers also placed orders before going on Christmas and New year holidays)

1- Export Yan market remained under improved business activity.
2- Customer have floated good number of enquiries against which order materialization was better as compared with last couple of weeks.
3- Suppliers are firm at the current price levels as its already touching rock bottom level. Increase in cost of production is continuously hitting them hard causing heavy losses.
4- Overall cotton in domestic and international market remained firm. It is projected that prices has already touched the bottom.
5- Prices are recovering now and expected that it may rise in a days to come.
6- Chinese customers floating handsome numbers of enquiry against which moderate business activity was observed. It’s expected that market will improve in days to come as suppliers are under comfortable sales position.
7- European customer floated good numbers of inquiries against which handsome quantity orders were placed. Major buying was pre-Christmas holidays and it is expected that market will get better in days to come.

Export Yarn Prices
Count USD / Bale
16/1 Carded Weaving 485 – 490
20/1 Carded Weaving 495 – 500
20/1 CM 510 – 515
16/1 CM 510 – 515
20/2 CD 525 – 530
24/2 CD 535 – 540
10/1 CARDED SIRO YARN WEAVING 410 – 430

Local Fabric Market:
(Slow and dull market activity was observed in local fabric market. Limited buying was witnessed both in narrow and wider width. For the coming week, we expect slow and limited trading activity)

1- In the current week under review, the local fabric market showed dull activity for both narrow and wider-width fabrics.
2- Weavers received limited inquiries and buyers booked limited orders for both narrow and wider-width fabrics after tough negotiations.
3- However, weavers remained firm in their asking, but ready to negotiate against any firm bid.
4- Currently, the weavers have booked their narrow-width looms until the end of January 2024 and their wide-width looms until early to mid-February 2024, and are offering onward deliveries.

Export Fabric Market:
(The export fabric market remained slow due to Christmas and New Year holidays. Prices are stable and suppliers are very aggressive in selling)

1- The Far Eastern markets remained slow. Customers are not into buying due to depressed market situation.
2- The asking prices are same as of last week due to stable yarn market.
3- Suppliers are booked for next 2~3 weeks and offering 20th Jan onward deliveries
4- European and USA buyers remained quiet due to Christmas and new Year holidays.
5- Wider width prices are stable as raw material prices are stable.
6- Currently wider width suppliers are booked till mid of Feb and offering end Feb onward deliveries.

Local and Export Fabric Prices
Construction Price US$/YD Ex Mill Price US$/YD CNF Far East
16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN 1.24 – 1.26 1.24 – 1.26
20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN 1.12 – 1.14 1.12 – 1.14
20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN 0.91 – 0.93 0.94 – 0.96

Bed Linen and Towel:
(Primary focus of all suppliers is Heimtex 2024. No order confirmations or bookings have been observed in current week for the home textile)

1- This week’s home textile sector had been indulged in only 1 agenda. That is Heimtex 2024. All suppliers have focused completely on new developments and product presentations for the upcoming fair. Orders, meet and greet meetings and bookings are only expected during the Heimtex 2024.

Garments:
(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 4th quarter of 2023. Factories are offering March 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 labor 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 72.47 a higher level as compared to last week’s closing figures. In this week, crude oil prices showed an upward trend and closed on higher by the end of the week.
2- In the last day of the week, Crude Oil prices closed at USD 73.56 with an increase of USD 1.09 cents as of the opening figure of the week.

  Opening of Week Closing Of Week Change
Price 72.47 73.56 1.09

Exchange Rate:

1- In last week values of the Pak rupee appreciated against US Dollar, 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 1.10 and the British Pound also closed on a positive note with a figure 1.27 against USD.

  Selling Buying
LC Sight 281.02 280.97
LC 120 Days 269.89 269.84
Open Market 286.03 279.87

New York Cotton Future:

1- The New York Cotton futures started the week lower than the previous week’s closing figures. NYCF showed a mixed 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 79.76 with an increase of 66 points.
3- On the last day of the week, MAY 2024 closed at 80.64 with a rise of 75 points.
4- On the last day of the week, JUL 2024 closed at 81.07 with a higher of 63 points.
5- On the last day of the week, OCT 2024 closed at 78.07 by surge of 78 points.

Liver Pool Indices:

1- Liverpool Index A was opened at 90.95 a lower level than the previous week’s closing figure.
2- This week Index “A” showed a downward sentiment and closed on the lower side by the end.
3- At the last day of the week, LPI “A” closed at 89.50 with a decrease of 145 points.

  Opening of the Week Closing of the Week Change
Index A 90.95 89.50 -1.45

 

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