Pakistan Local Cotton Market:
(Local cotton buyers showed in interested in buying due to rising trend internationally and fear of shortage of cotton locally. Although consumer demands are not realistic due to which seems that prices may remain same in a days to come)
1- The local cotton market experienced a rise in business attributed to the global upward trend in cotton prices, which was mirrored in the local market. The apprehension of a potential further increase in prices prompted increased activity from customers in the market.
2- The cotton production was 82 lakh 58 thousand bales, and the total production is expected to reach 84 lakh bales. However, there are challenges as thousands of bales of imported Afghani cotton are stuck due to the border dispute.
3- Textile mills has sustained their interest in buying high-quality cotton, and business volume was relatively good. Despite the ongoing financial crisis in the markets, inquiries for cotton yarn persisted, and the demand for picking cotton yarn can be considered favourable.
4- Price of Future Trading of cotton has risen in the international cotton market, with New York cotton currently priced at 84.37 American cents per pound.
5- The cotton market has turned a bit volatile, just as the equity and finance markets have. Long-term interest rates are increasing slightly as the market debates if, when, and should the Fed even push short-term rates lower.
6- Short-term rates for business operations have not declined and, in fact, have tended to move higher. Thus, the textile business will continue to be challenged. Yet, the psychological impact of the Fed dropping rates can create short-term optimism in the market if nothing else.
7- Last week, cotton prices in Punjab and Sindh showed upward trend and showed rose 1000~1200 rs per maund and in ranging from Rs 18,800 to Rs 21,000 per maund, (USC 0.82~0.92 lbs) with Phutti prices at
Rs 6,500~8,500 per 40kg. In Sindh, cotton rate was Rs 18,800 to Rs 20,500 per maund, while in Punjab it ranged from Rs 18,800 to Rs 21,000 per maund. KCA up rs.500 to at Rs. 19,500 per maund and PSF remained same at rs. 362 PKR/kg.
Local Yarn Market:
(Healthy business activity was observed during the week. It is expected that prices for local yarn will remain strong by next week leading to cotton prices and customer demand)
1- The local yarn market is firm and prices increased by Rs.5/lbs. due to the escalation of NYCF as compared to last week with good business activity.
2- Yarn is sold for two weeks & has no stocks available.
3- PSF prices remained stable on the domestic market, For next week it is expected to increase by Rs 4~5/kg.
4- The Faisalabad market is stable with limited activity in fine cotton counts and PC/PV demand is normal.
|Price in Pak Rupees / 10 LBS
|16/1 Carded Weaving
|3400 – 3500
|490 – 500
|20/1 Carded Weaving
|3500 – 3700
|500 – 530
|30/1 Carded Weaving
|3750 – 3950
|540 – 565
|4050 – 4150
|580 – 595
|30/1 PC Carded Weaving 52:48
|3070 – 3200
|440 – 460
|40/1 Combed Compact Weaving
|4600 – 4750
|660 – 680
|60/1 Combed Compact Weaving
|6500 – 6600
|935 – 945
|80/1 Combed Compact Weaving
|8550 – 9200
|1225 – 1320
|40/1 CVC Carded Weaving 60:40
|3900 – 4000
|560 – 575
Export Yarn Market:
(Export yarn market remained firm and stable with active business throughout the week. Customers have showed positive response by increasing their prices and booked orders for required quantities. It is expected that market will remained firm and stable with tendency to increase further)
1- Export yarn market is holding steady with good 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 local and international market showed upward trend 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 and they booked orders by increasing their bids to 4-6%.
8- European customers were actively engaged at the Heimtex event; Pakistan is closely watching potential buyers.
|Export Yarn Prices
Local Fabric Market:
(The local fabric market remained dull with increased in asking prices. Finishing units opted to remain sideline)
1- The local fabric market remained dull throughout the week and closed with limited trading activity for both narrow and wider-width fabrics.
2- Local finishers and buyers opted to remain sideline and did not show interest in buying at the current level and shared inquiries were just for price checking.
3- Towards the end of the week, weavers increased their asking prices due to volatility in the yarn market.
4- Currently, the weavers have booked their narrow-width looms until the end of February’2024 and their wide-width looms until the end of March and are offering onward deliveries..
Export Fabric Market:
(Far Eastern markets for fabric remained inactive. Suppliers are hopeful to get good orders mainly from Europe as bulk programs are under discussion with home textile units)
1- Far Eastern markets for fabric continuously depressed due to slow demand from all of the sectors.
2- Asking prices further increased by 2~3% due to firmness in yarn prices in domestic market
3- Suppliers are booked till end of Feb and offering onward deliveries.
4- European and USA buyers were active in the market with good flow of inquiries.
5- Suppliers are hopeful to get orders after Heimtex fair as home textile units are discussing bulk programs.
6- Wider width suppliers are booked till mid of Mar and offering end Mar onward deliveries.
|Local and Export Fabric Prices
Bed Linen and Towel:
(Good flow of inquires – Orders in market – confirmations are being made at very competitive price points while compromising significant profit margins)
1- Post Heimtex business activities are being observed at various manufacturers in Faisalabad, Lahore and Karachi specifically. Competition between medium range suppliers is raging up due to very tight price points and targets from suppliers. Suppliers are compelled to further shrink their profit margins and play within a very limited variables. Inquiries are in good flow as well as there are orders in the market but that are being conformed on a very competitive price points which has a very difficult acceptability at various suppliers.
2- Due to this very reason, a major shift in price differences is being observed even at medium range home textile suppliers ( Faisalabad Khurrianwala market specially). The quoted price comparisons clearly show a major difference thus endorsing the dire situation where some of the suppliers are compelled to compromise their profit margins and significantly decreasing their over head costs to achieve MOQ for running the processing
(Generally, garment demand is slow due to uncertain economic situations around the globe. Negligible orders received from EU and USA. The denim sector is optimistic about getting more orders for sustainable products)
1- As a result of economic uncertainty, some countries have seen a decrease in garment demand as consumers cut back on spending.
2- In terms of order placements, Pakistan’s garment industry received a negligible number of orders from European and US customers.
3- Normally, factories receive projection-based orders from large retailers, but the market has been slow, owing in part to global inflation.
4- Factory deliveries are available from early April onward.
5- In the denim sector, the worldwide market is still striving to recover from inflation, but manufacturers are optimistic about the next seasons since consumers still have a high demand for sustainable products and are prepared to pay a premium for environmentally friendly products.
1- Crude Oil prices opened at USD 75.19 with higher level as compared to last week closing figures. in this week, crude oil prices showed upward trend and closed on higher side by the end of week.
2- In last day of the week, Crude Oil price closed at USD 78.01 with an increase of USD 2.82 cents as of opening figure of the week.
|Opening of Week
|Closing Of Week
1- In the last week values of Pak rupee appreciated against US Dollar’s, 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 1.09 and the British Pound closed on a negative note with a figure 1.27 against USD.
|LC 120 Days
New York Cotton Future:
The New York Cotton futures started the week higher than the previous week’s closing figures. NYCF showed upward trend and closed on higher side, hence dropped on last session and closed with mix sentiments. The closing figures for the week were:
1- On the last day of the week, MAR 2024 closed at 84.37 with decrease of 46 points.
2- On the last day of the week, MAY 2024 closed at 85.63 with drop of 23 points.
3- On the last day of the week, JUL 2024 closed at 86.32 with increase of 6 points.
4- On the last day of the week, OCT 2024 closed at 82.06 with rose of by 29 points.
Liver Pool Indices:
1- Liverpool Index A opened at 91.95 on the same level as the previous week of closing figure.
2- In this week Index “A” showed a rising trend and closed on the upper side by the end of the week.
3- At last day of the week, LPI “A” closed at 94.45 with an increase of 250 points…
|Opening of the Week
|Closing of the Week