Pakistan Local Cotton Market:
(The local cotton market’s lack of movement, alongside the global price downturn, has dampened the demand for textile products amid an atmosphere of uncertainty in the market)
1- This week, the regional cotton market witnessed prices holding steady, primarily due to a lackluster level of commercial activity. Despite an initial spike, worldwide cotton prices are currently experiencing a decline, possibly influenced by speculative trading. The ambiguity persists regarding whether global prices will stabilize or further decline. Consequently, there hasn’t been any increase in the demand for textile products.
2- (PCGA) fortnightly report, showed a significant increase in cotton production for the country, reaching 83,960,000 bales as of March 31, 2024, marking a rise of 34,840,000 bales compared to the previous year.
3- Despite reduced business activity, local cotton prices remained stable. Textile spinners are cautious due to limited stock availability. Additionally, the textile sector faces higher energy costs, exacerbated by the IMF’s call for further electricity and gas tariff hikes.
4- The ICE cotton market finally settled for the week under significant pressure. The market has yet to find its bottom. A notable free fall occurred on Friday, with all contracts of ICE cotton registering a decline of around one per cent.
5- The dollar index finally edged up, making cotton more expensive to buy. However, a stronger dollar restricted the fall in this natural fibre. The dollar index reached above the 104 level, while crude oil prices increased by 32 cents to $86.91 per barrel. A stronger crude oil price boosts the production cost of synthetic fibre, which benefits natural fibre.
6- US cotton sowing has started as the moisture content is good. However, some areas in Texas are starting to experience drought tendencies, a negative factor for cotton output in the major exporting countries.
7- Last week, cotton prices in Punjab and Sindh showed firmness from Rs 20,500 to Rs 22,500 per maund, (USC 0.89~1.00 lbs). In Sindh, cotton rate was Rs 20,500 to Rs 22,500 per maund, while in Punjab it ranged from Rs 20,700 to Rs 22,500 per maund. KCA was same at rs. Rs. 21,500 per maund and PSF remained same at rs. 367 PKR/kg.
Local Yarn Market:
(The local yarn market is expected to see continued slow activity, with businesses relying on end-user demand and local price stability)
1- The local yarn market experiences slow business activity despite stable asking prices.
2- To minimize losses and maintain operations, mills are resistant to price reductions.
3- Consequently, they avoid stockpiling yarn and managing the production to meet current demand.
4- PSF prices remained stable this week and are expected to continue stable by next week.
5- The Faisalabad market had normal activity as the cotton season ended and demand shifted towards viscose
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3475 – 3600 | 500 – 520 |
| 20/1 Carded Weaving | 3550 – 3700 | 515 – 535 |
| 30/1 Carded Weaving | 4000 – 4200 | 580 – 605 |
| 20/1 CM | 4250 – 4350 | 615 – 630 |
| 30/1 PC Carded Weaving 52:48 | 3450 – 3600 | 500 – 520 |
| 40/1 Combed Compact Weaving | 4800 – 4900 | 695 – 710 |
| 60/1 Combed Compact Weaving | 6700 – 6900 | 970 – 995 |
| 80/1 Combed Compact Weaving | 8800 – 9400 | 1270 – 1360 |
| 40/1 CVC Carded Weaving 60:40 | 4250 – 4300 | 615 – 620 |
Export Yarn Market:
(Export yarn is expected good business activity in days to come as now prices are getting settled and both customers and suppliers are coming to agreement where business will be closed)
1- Improved business activity was observed in export yarn market .
2- Customers floated handsome numbers of enquiries against which business has been confirmed as well.
3- Generally suppliers are now showing slight flexible tone and trying to catch any orders which is coming near to offered prices.
4- Cotton prices in Pakistan are stable as crop has been finished and suppliers have to import cotton from other origins which is causing high prices.
5- At the same time, cost of production is hitting spinners very badly. Many suppliers are planning to close their productions before arrival of new cotton crop due to severe losses.
6- This is disrupting supply of yarn in market which may put impact on prices from stable to upward tone.
7- At the same time, may customers are not of the opinion that market has already touched rock bottom level and prices are going to bounce back in now.
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Local Fabric Market:
(For the local fabric, we expect the market to continue the slow trend for both narrow and wider widths due to the absence of bulk inquiries in the market)
1- In the current week under review, the local fabric market remained slow and the week closed with limited trading activity for both narrow and wider-width fabrics.
2- Local buyers shared limited inquiries but the majority of the inquiries were just for price checking owing to the firm yarn and fabric prices. Resultantly week closed with limited order confirmation for both narrow and wider-width fabrics.
3- Weavers have fully booked their narrow-width looms until early 2024 and their wide-width looms until mid-May 2024, with options for onward deliveries.
Export Fabric Market:
(Average business activity was seen during the week. The next week is expected to remain quiet due to Eid festival holidays in Pakistan)
1- The average flow of inquiries was observed in the Far Eastern sector, but customer target prices were lower, so limited buying was observed during the week.
2- Asking prices are stable, but customers are targeting 4~5% higher than the existing price level.
3- Suppliers are booked till end of April and offering early May ~ mid May onward deliveries.
4- USA and European customers remained aside from buying during the week, with a limited flow of inquiries.
5- Prices for wider-width fabric were the same as last week due to stable raw material prices.
6- Suppliers are booked till the end of May and offering onward deliveries for wider-width fabric.
| Local and Export Fabric Prices | ||||||||||||
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Bed Linen and Towel:
(For the home textile, the flow of inquiries is reasonable. Despite demand in EU and west, order conversion ratio is 10 to 15% due to unmeet able price points. Anticipation of Dollar depreciation and record high energy tariffs are major reasons)
1- For the Home textile industry, Faisalabad market is running processing at the 40 to 50% of their capacities.
2- Flow of inquiries is still reasonable and there is a certain demand in EU market as well but like the previous weeks, price points are too hard to meet by Home textile industry hence reducing the order conformations and limiting to only 10 to 15% relative to inquiry receipt ratio.
3- Further it is anticipated that dollar rate will further depreciate stoking fears in Exporters and severely effecting costing.
Garments:
(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 garment manufacturers are looking for high-volume buyers to occupy their capacities.
2- Most of the customers have placed decent quantity of orders with.
3- Several well-known retail brands have also started to place orders. This has given a glimmer of optimism for the upcoming seasons.
4- A few factories are also creating developments for SS25 collection. Meanwhile, there are still some factories hiring more labor to fulfill customer’s demands.
5- In general, factories are offering July 2024 onward deliveries.
6- 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 83.71 with a higher level as compared to last week closing figures. in this week, crude oil prices showed upward trend and closed on the higher side by the end of the week.
2- In last day of the week, Crude Oil prices closed at USD 86.91 with an increase of 3.20 USD cents as of the opening figure of the week.
| Opening of Week | Closing Of Week | Change | |
| Price | 83.71 | 86.91 | 3.20 |
Exchange Rate:
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, Euro closed on a positive note with the figure of 1.08 and the British Pound also closed on a positive note with a figure 1.26 against USD.
| Selling | Buying | |
| LC Sight | 276.93 | 276.88 |
| LC 120 Days | 268.88 | 268.83 |
| Open Market | 281.08 | 275.02 |
New York Cotton Future:
The New York Cotton futures started the week higher than the previous week’s closing figures. NYCF rose the next day later showed a downward trend this week and closed on the lower side by the end of the week.
1- May 2024 closed at 86.25, down 651 points from the previous week.
2- July 2024 closed at 87.82, experiencing a drop of 549 points from the previous week.
3- October 2024 closed at 83.59, showing a reduction of 496 points from the previous week.
4- December 2024 closed at 82.65, lower by 170 points from the previous week.
Liver Pool Indices:
1- Liverpool Index A was opened at 97.95 on lower level from the previous week of closing figure.
2- In this week Index “A” showed a downward trend and closed on lower side by the end of week.
3- At last day of the week, LPI “A” closed at 94.10 with decrease of 385 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 97.95 | 94.10 | -3.85 |
