Market Report- Pakistan 15 Jan 2024

Pakistan Local Cotton Market:
(Buyer interest decreased once more, even though there’s a shortage of good-quality cotton. This decline is influenced by the global slowdown in textile product trends. Inflation has affected the purchasing power of consumers, and it appears that the market will remain slow in the coming days)

1- In the local cotton market, things were not as good after prices suddenly went up last week. This week, prices stayed the same because the textile business around the world is not going well.
2- The people who process cotton, they raised prices because there isn’t enough good-quality cotton left, but it didn’t really help to improve the business.
3- Good-quality cotton kept its high price last week, even though there wasn’t enough of it. It is predicted that the total cotton production will be around 8.5 million bales.
4- The textile industry had a tough time last year, with production continuously going down. The prices for cotton around the world went up and down a lot throughout the year.
5- The signs in the market, like future expectations, yarn prices, factory work, export sales, and expected plantings for 2024, all look a lot like what we saw in 2023.
6- This suggests things are kind of stuck. Predictions say that cotton prices won’t change much until May, and there’s a noticeable change expected when we move from May to July.
7- Last week, cotton prices in Punjab and Sindh remained on same levels in ranging from Rs 17,500 to Rs 20,500 per maund, (USC 0.76~0.88 lbs) with Phutti prices at Rs 6,500~8,500 per 40kg. In Sindh, cotton rate was Rs 17,200 to Rs 19,500 per maund, while in Punjab it ranged from Rs 17,500 to
Rs 20,500 per maund. KCA was up rs.400 to at Rs. 19,000 per maund and PSF remained same at
362 PKR/kg.

Local Yarn Market:
(The market is expected to remain stable & firm by next week with constant yarn prices in domestic market. Further business activity depends upon count-wise demand from end customers plus local cotton prices in Pakistan)

1- The local yarn market has seen a sudden jump, with prices soaring by Rs.10-12 per pound compared to last week and is expected to continue rising in anticipation of large orders discussion at Heimtextil 2024.
2- Mills sold yarn two weeks ahead and have no stocks available
3- The prices of PSF have stayed stable in the domestic market but are expected to increase by next week.
4- The Faisalabad market had stable activity in fine cotton counts plus PC/PV demand also increased.

Count Price in Pak Rupees / 10 LBS Price US$/Bale
16/1 Carded Weaving 3375 – 3500 485 – 500
20/1 Carded Weaving 3500 – 3600 500 – 515
30/1 Carded Weaving 3750 – 3950 535 – 565
20/1 CM 4000 – 4100 570 – 585
30/1 PC Carded Weaving 52:48 3050 – 3180 435 – 455
40/1 Combed Compact Weaving 4550 – 4650 650 – 665
60/1 Combed Compact Weaving 6400 – 6500 915 – 930
80/1 Combed Compact Weaving 8500 – 9000 1215 – 1285
40/1 CVC Carded Weaving 60:40 3780 – 3900 540 – 560

Export Yarn Market:
(The international yarn export market maintained a slow to moderate pace. Meanwhile, the local demand for cotton remained robust, prompting spinners to implement price hikes. This implies that prices could either remain stable or witness an upward trend in the upcoming days. Pakistan is anticipating significant orders from the Heimtex fair, which could contribute to the enhancement of Pakistani yarn exports)

1- Export yarn market is holding steady with moderate business activity.
2- Increased customer inquiries are boosting overall business.
3- Suppliers have increased prices due to better sales and higher demand.
4- Cotton prices, both locally and internationally, are stable; there’s a chance a price bottom has been reached with an expected rebound.
5- Prices are on the mend, and an increase is expected soon.
6- The global supply chain crisis has led to higher shipping costs to Europe/USA, potentially causing a significant rise in yarn prices due to 2-3 times higher freight charges.
7- Positive inquiries from Chinese customers suggest a better market outlook.
8- European customers were actively engaged at the Heimtex event; Pakistan is closely watching potential buyers

Export Yarn Prices
Count USD / Bale
16/1 Carded Weaving 500 – 505
20/1 Carded Weaving 515 – 520
20/1 CM 525 – 530
16/1 CM 520 – 525
20/2 CD 545 – 550
24/2 CD 580 – 585

Local Fabric Market:
(The local fabric market remained slow and dull during the week. We may see some improved activity for both narrow and wider-width fabrics in days to come)

1- The local fabric market remained low throughout the week and closed with dull activity for both narrow and wider-width fabrics in the current week under review.
2- Weaver received limited inquiries due to the Heimtex fair and resultantly limited order confirmations observed throughout the week due to high asking prices from weavers as compared to last week.
3- Weavers increased their asking prices by almost 3% due to the increase in yarn prices
4- Currently, the weavers booked their narrow-width looms until mid-February 2024 and their wide-width looms until the end of February’2024, and are offering onward deliveries.

Export Fabric Market:
(Export fabric market remained slow and dull during the week. USA and European customers were attending Heimtex fair. Suppliers are hopeful to get good orders after the Heimtex)

1- Export fabric market is continuously remains dull and inactive.
2- The flow of inquiry was good during the week from Far Eastern markets with limited business activity.
3- Asking prices were increased by 2~3% due to increase in yarn prices.
4- Suppliers are booked till early ~ mid of Feb and offering onward deliveries.
5- Most of the European and USA buyers were attending Heimtex fair.
6- Prices for wider width remained firm due to firm raw material prices.
7- Suppliers are booked for wider width fabric till end of March and offering 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 1.27 – 1.29 1.28 – 1.30
20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN 1.14 – 1.16 1.16 – 1.18
20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN 0.94 – 0.96 0.98 – 1.00

Bed Linen and Towel:
(For the Home textile, all eyes are on the outcomes of major current event Heimtex 2024 . Upcoming week will elaborate the final outcome)

1- The only and major event of current week was Heimtex 2024. All the business activity was focused on meet / greet and discussions regarding orders and consequent confirmations. The initial reports are good as customer and supplier presence as well as active engagements. For further details and reports, feedback from suppliers is awaited and the next upcoming weekly report will summarize the detailed outcomes.
2- All eyes are on the outcomes of major current event Heimtex 2024. Upcoming week will elaborate the final outcome.

(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- Pakistani garment units are searching for large volumes to fill their production space. Some of the factories have received good orders from their export-based customers. This has provided a gleam of hope for the forthcoming seasons.
2- A few brands are also developing new products for the SS25 season.
3- Some of the knitting producers have recently received good orders from retail brands.
4- Overall, factories have delivery accessible 90 days after order confirmation.
5- The denim market leaders are hopeful as they are working on new sustainable developments since the market’s growth will be driven by demand for sustainable denim fabric, and ongoing technological advancements in laser to cut down water costs.

Crude Oil:

1- Crude Oil prices opened at USD 70.77 a lower level as compared to last week’s closing figures. in this week, crude oil prices showed mix trend and closed on the higher side by the end of the week.
2- On the last day of the week, Crude Oil prices closed at USD 72.68 with an increase of USD 1.91 cents as of the opening figure of the week.

  Opening of Week Closing Of Week Change
Price 70.77 72.68 1.91

Exchange Rate:

1- In last week values of Pak rupee appreciated against 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 the figure of 1.09 and the British Pound also closed on a negative note with a figure 1.27 against USD.

  Selling Buying
LC Sight 279.72 279.77
LC 120 Days 270.22 270.27
Open Market 278.19 284.32

New York Cotton Future:

The New York Cotton futures started the week slight higher than the previous week’s closing figures. NYCF showed upward trend and closed on higher side. The closing figures for the week were:

1- On the last day of the week, MAR 2024 closed at 81.31 with increase of 89 points.
2- On the last day of the week, MAY 2024 closed at 82.29 with rose of 80 points.
3- On the last day of the week, JUL 2024 closed at 82.94 with higher of 65 points.
4- On the last day of the week, OCT 2024 closed at 81.01 by surge of by 17 points.

Liver Pool Indices:

1- Liverpool Index A was opened at 90.40 on lower level from the previous week of closing figure.
2- In this week Index “A” showed rising sentiment and closed on higher side by end.
3- At last day of the week, LPI “A” closed at 91.65 with increase of 125 points.

  Opening of the Week Closing of the Week Change
Index A 90.40 91.65 1.25