Market Report- Pakistan 5 March 2024

Pakistan Local Cotton Market:
(The local cotton market is staying steady, but global prices went up and down. Buyers are waiting for prices to drop, and spinners are unsure since the local season ended. The future depends on what happens with international prices)

1- This week, the local cotton market stayed about the same in terms of prices, with a decent amount of business happening. Global cotton prices went up a lot for a while, probably due to guesses and predictions, but then they went down a bit. Now, we’re not sure if the international prices will stay the same or drop more.
2- Buyers are holding off on imports, anticipating a price drop. Spinners are feeling uncertain because the local cotton season has come to an end.
3- Cotton arrival season 23-24 almost ends @8.4m bales. As per PCGA’s report released in this week. Stock of
2 lakh bales apparently appear to be too small in view of the time to start new season. But lean demand amid poor economic situation is keeping the business activities at low pace.
4- The surge in prices may pose challenges for spinners and other businesses in the textile industry, as it can lead to increased production costs and potentially impact profit margins
5- Businesses may need to reassess their pricing strategies, explore alternative sourcing options, or consider adjusting production volumes in response to the changing cost environment.
6- Last week, cotton prices in Punjab and Sindh showed firmness from Rs 20,500 to Rs 23,000 per maund, (USC 0.89~1.00 lbs). In Sindh, cotton rate was Rs 20,500 to Rs 22,500 per maund, while in Punjab it ranged from Rs 21,000 to Rs 23,000 per maund. KCA was down rs. 500 to at Rs. 21,500 per maund and PSF remained same at rs. 365 PKR/kg.

Local Yarn Market:
(Limited business was observed in local yarn market. The prices are further increased by 5~10 per pound. It is expected that market will maintain firm prices with partially revived activity in the near term. Greater clarity on market movements is anticipated as the market stabilizes in the coming week)

1- The domestic yarn market witnessed firmness due to the upward trend in NYCF prices.
2- Yarn prices increased by Rs. 5-10 per pound.
3- Limited inquiries were observed, with orders primarily focused on urgent requirements.
4- PSF prices remained stable this week but are expected to rise by Rs. 2-3 per kg next week.
5- The Faisalabad market experienced average activity for PV and fine yarn counts. Cotton count and PC yarn sales remained sluggish, likely due to rising input costs and uncertain export demand.

Count Price in Pak Rupees / 10 LBS Price US$/Bale
16/1 Carded Weaving 3650 – 3750 525 – 540
20/1 Carded Weaving 3900 – 3950 560 – 565
30/1 Carded Weaving 4250 – 4350 610 – 625
20/1 CM 4350 – 4500 625 – 645
30/1 PC Carded Weaving 52:48 3450 – 3580 495 – 515
40/1 Combed Compact Weaving 5000 – 5050 720 – 725
60/1 Combed Compact Weaving 6850 – 7100 985 – 1020
80/1 Combed Compact Weaving 8950 – 9500 1285 – 1365
40/1 CVC Carded Weaving 60:40 4230 – 4300 610 – 620

Export Yarn Market:
(The yarn market stayed stable, but no buying was seen. Prices went up because there’s less cotton in Pakistan. The NYCF prices dropped this week, which might attract more buyers and sellers soon. China buyers hope to make deals at the Yarn Expo next week, hence European customers remained active in buying. Nowadays everyone is unsure because international cotton prices are unpredictable and could drop anytime)

1- Export yarn market remained firm to stable and business activity remained low.
2- Customers were away from the market and didn’t show interest.
3- Suppliers on the other hand, remained firm and stable with upward trend in prices.
4- Major reason is end of cotton crop in Pakistan and suppliers are forced to buy imported cotton for which, prices are continuously on the rise.
5- In this week, NYCF showed downward trend which may attract to the buyers and suppliers for the business in a days to come.
6- Pakistan domestic market was remained firm but comparatively business was down from previous week.
7- Yarn Expo is being held in coming week, it’s expected that buyers & suppliers will meet there and business is expected.
8- Uncertainty is prevailing in the market due to the international cotton trend which seems based on speculations and may drop any time.
9- European customers also remained in the market. Good numbers of enquiries were floated against which some deals were closed. It is expected that good business will be confirmed in days to come.

Export Yarn Prices
Count USD / Bale
16/1 Carded Weaving 615 – 620
20/1 Carded Weaving 625 – 630
20/1 CM 630 – 640
16/1 CM 644 – 650
20/2 CD 680 – 690
24/2 CD 480 – 505

Local Fabric Market:
(The local fabric market witnessed a lack of business activity. It is anticipating the upcoming week, a prevailing sense of sluggish sentiment is expected to persist, fueled by heightened market uncertainty and prevailing conditions)

1- During the current week, the local fabric market experienced a notable lack of activity, culminating in a subdued closure marked by minimal trading in both narrow and wider-width fabrics.
2- Local buyers remained on the sidelines, deterred by the considerable surge in prices.
3- This surge compelled buyers to defer their urgent procurement, hopeful for stabilization in local fabric prices. Consequently, the flow of inquiries dwindled significantly.
4- Moreover, weavers began quoting prices with same-day validity, further dampening trading momentum. As a result, the week concluded with limited transactions across both narrow and wider widths.
5- Presently, weavers have filled their narrow-width looms until early April 2024 and their wide-width looms until the third week of April, with commitments for onward deliveries.

Export Fabric Market:
(The export fabric market is not improving due to low demand and high prices. Customers are booking only urgent orders. Suppliers are offering competitive prices to get orders, but customers are taking a long time to decide on new purchases)

1- After the surge in prices, Far Eastern customers remained away from buying.
2- limited number of inquiries were received from China, Korea, Bangladesh, Vietnam and Japan, resulting in limited buying for urgent need
3- The asking prices were stable and firm due to stable raw material prices.
4- Suppliers are booked until the end of March and offer deliveries from mid-April onward.
5- European and USA buyers exchanged their inquiries both in narrow and wider widths; however, only urgent orders were booked.
6- Suppliers were offering same prices as of last week
7- The price negotiation margins are limited as suppliers are trying to offer a very competitive first price, but customers are reluctant to buy at the existing price level.
8- Wider-width suppliers are booked until the end of April and are offering May 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 1.43 – 1.45 1.42 – 1.44
20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN 1.31 – 1.33 1.30 – 1.32
20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN 1.07 – 1.09 1.04 – 1.06

Bed Linen and Towel:
(There is a continuous slump in home textile sector was observed with slow business. Suppliers are expecting same market trend for coming few weeks until the demand generate)

1- This week’s a continuation of slump and slow business activities in home textiles sector across Pakistan.
2- Mid and 3rd tier small units are facing severe brunt of very sharp prices and rising overhead costs.
3- Big suppliers are able to secure orders due to stable financial set ups and holding powers to maintain stocks and pre buying.

(Overall, Pakistani garment manufacturers are running at good capacity and waiting for orders to fill the rest of the space also anticipating more orders from US and EU markets; nevertheless, there is some hope that some of the country’s top retail brands have started placing orders with specific units)

1- Pakistani clothing manufacturers are looking for high-volume buyers to occupy their capacities. Several of the manufacturers’ customers have placed favorable orders with them. Several well-known retail brands have also started to place orders. This has given me a glimmer of optimism for the upcoming seasons.
2- A few factories are also creating developments for SS25 collection. Meanwhile, there are still some factories hiring more labor to fulfill customer’s demands.
3- In general, factories are offering June 2024 onward deliveries.
4- As the demand for sustainable denim fabric and continued technological breakthroughs will drive the market’s growth, the leaders in the denim industry are optimistic and are working on new sustainable developments.

Crude Oil:

1- Crude Oil prices opened at USD 77.58 with a 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 79.97 with an increase of 2.39 USD cents as of opening figure of week.

  Opening of Week Closing Of Week Change
Price 77.58 79.97 2.39

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 positive note with figure of 1.08 and British Pound also closed on positive note with figure 1.27 against USD.

  Selling Buying
LC Sight 278.46 278.41
LC 120 Days 272.45 272.40
Open Market 282.40 276.31

New York Cotton Future:

The New York Cotton futures started the week higher than the previous week’s closing figures. NYCF rose next day and later showed downward trend to closed with mix sentiments.

1- On the last day of the week, MAY2024 closed at 95.57 with increase of 77 points.
2- On the last day of the week, JUL 2024 closed at 93.77 with rose of 9 points.
3- On the last day of the week, OCT 2024 closed at 85.90 with decrease of 51 points.
4- On the last day of the week, DEC 2024 closed at 82.95 by reducing of 106 points.

Liver Pool Indices:

1- Liverpool Index A opened at 101.50 a higher level than the previous week’s closing figure.
2- In this week Index “A” showed an upward trend and closed on the higher side by the end of week.
3- At the last day of the week, LPI “A” closed at 107.00 with an increase of 550 points.

  Opening of the Week Closing of the Week Change
Index A 101.50 107.00 5.50