Market Report- Pakistan 20 May 2024

Pakistan Local Cotton Market:
(The local cotton market is stagnant, with prices staying low due to international price drops, putting pressure on farmers. Business volume is minimal as the season concludes, with spinners and mills remaining inactive due to uncertainty and decreased international demand)

1- This week, the local cotton market was inactive, with no trading taking place as everyone awaited the arrival of the new crop. Prices remained stagnant at previous levels without any changes. Consequently, the decline in international cotton prices is putting pressure on local farmers, who are anticipating a loss when the new crop arrives.
2- Business activity is minimal as the cotton season winds down. Spinners have limited stocks of cotton, and textile mills are largely inactive due to poor market conditions for cotton yarn and textile products. The market is facing a severe downturn, and the financial crisis is becoming overwhelming. The next cotton season is set to start next month. Because of the deep crisis in the textile sector, many mills are trying to sell their cotton stocks, but there are few buyers.
3- In the first fortnight of May, cotton prices in Brazil experienced fluctuations, ultimately trending downwards by mid-month. Early May saw some sellers, particularly those aiming to offload stocks from the 2022-23 season, showing more flexibility in pricing. Despite this, prices declined as certain industry players offered lower prices to secure new deals, as per the Centre for Advanced Studies on Applied Economics (CEPEA).
4- Last week, cotton prices in Punjab and Sindh showed firmness from Rs 19,000 to Rs 21,000 per maund, (USC 0.84~0.93 lbs).
In Sindh, cotton rate was Rs 19,000 to Rs 20,500 per maund, while in Punjab it ranged from Rs 19,500 to Rs 21,000 per maund. KCA remained same at Rs. 19,700 per maund and PSF remained same at Rs. 367 PKR/kg.

Local Yarn Market:
(The local yarn market showed limited business activity. It is determined that the market is expected to maintain steady prices and moderate activity. Furthermore, as the yarn market softens, movement will clear out by the next week)

1- The local yarn market held steady, characterized by price resistance and limited business activity. Mills have to shut down more often to manage production because of rising expenses and bank markups.
2- PSF prices remained stable this week and are expected to continue stable by next week.
3- The yarn market in Faisalabad had slow activity in PV and other cotton yarns.

Count Price in Pak Rupees / 10 LBS Price US$/Bale
16/1 Carded Weaving 3200 – 3300 465 – 480
20/1 Carded Weaving 3350 – 3475 485 – 505
30/1 Carded Weaving 3850 – 3950 560 – 575
20/1 CM 4100 – 4200 595 – 610
30/1 PC Carded Weaving 52:48 3300 – 3450 480 – 500
40/1 Combed Compact Weaving 4600 – 4700 670 – 685
60/1 Combed Compact Weaving 6400 – 6500 930 – 945
80/1 Combed Compact Weaving 8600 – 8800 1250 – 1280
40/1 CVC Carded Weaving 60:40 4050 – 4150 590 – 605

Export Yarn Market:
(Export yarn market showed improved and positive notes as customers from all regions have started to place orders. There has been quite a better activity as many inquiries which were under discussion since last couple of weeks were closed this week. We might see further improved business tone in days to come)

1- The export yarn market showed an active business tone. A good number of inquiries were received against which order were closed as well.
2- Supplier showed their fullest interest in catching orders and in the presence of firm bids from buyers.
3- Cotton prices in Pakistan are floating in same range as crop has been finished and suppliers have to import cotton from other origins which is causing high prices.
4- Suppliers are now keeping an eye on new crop which is expected to arrive in the end June/ early July. We might see new cotton crop deals after our Eid Holidays in mid June
5- There are positive figures for new cotton crop and it is expected that the quality and quantity of new crop will be better than last year in case weather remains conducive
6- Chinese customers floated decent numbers of inquiries against which order materialization was witnessed as well. Customers’ target prices are more or less the same as last couple of weeks and suppliers are selling as per their sales coverage.
7- European customers were actively floating inquiries for normal and specialized items. Some placements have been witnessed and we might see more order to be closed which are under discussion.

Export Yarn Prices
Count USD / Bale
16/1 Carded Weaving 535 – 540
20/1 Carded Weaving 545 – 550
20/1 CM 550 – 555
16/1 CM 540 – 545
20/2 CD 565 – 570
24/2 CD 600 – 610

Local Fabric Market:
(Nominal business activity was observed in local fabric market. Most of the inquiries were price checking. Looking ahead, we anticipate the local fabric market will continue to exhibit limited activity and firm fabric prices)

1- The local fabric market remained lackluster throughout the week, closing with minimal trading activity for both narrow and wider-width fabrics. Local finishers and buyers chose to stay on the sidelines, showing little interest in purchasing at current price levels. Most inquiries were merely for price verification rather than actual buying.
2- Despite firm yarn prices, weavers maintained their asking prices but were open to reasonable negotiations. Currently, weavers have secured orders for their narrow-width looms until mid-June 2024, and for their wide-width looms until the end of June, offering delivery dates beyond these periods.

Export Fabric Market:
(An improved business activity was seen in export fabric market for Far Eastern customers however Europe and USA markets were less activity during the week. Suppliers are expecting good business in days to come as the prices have touched almost the bottom level now)

1- The week started with slow business activity but closed on a positive note as some customers from China and Korea booked decent quantities at 1~2% lower than last week’s offers.
2- Suppliers could hardly manage the target prices because the yarn prices are stable, whereas customers are expecting lower prices in line with the NYCF price trend.
3- Currently, good suppliers are booked till mid-June and offer end-June onward deliveries, whereas average suppliers are booked for the next 2~3 weeks only and offer onward deliveries.
4- A limited number of inquiries were received from European and USA buyers, resulting in limited buying both in narrow and wider widths during the week under review.
5- Most of the wider-width suppliers have a good sales position, and they are mainly offering Aug onward deliveries.
6- The prices for wider-width fabric were softened by about 2~3% due to better import-based yarn prices.

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 1.37 – 1.39 1.34 – 1.36
20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN 1.25 – 1.27 1.22 – 1.24
20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN 1.02 – 1.04 1.00 – 1.02

Bed Linen and Towel:
(Flow of inquiries is reasonable in home textile. Despite demand in EU and west, order conversion ratio is 20 to 30% due to unmeet able price points. Anticipation of Decreased cotton yarn rate will help to decrease the gap however)

1- Home textile industry is observing a relative more activity and running processing at the rate of 40 to 50% capacities on average with some vertical composite units running at 80% capacities as well.
2- The 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 20 to 30% relative to inquiry receipt ratio.
3- Further it is anticipated that cotton rate will decrease that will help a bit to decrease the target price and cost price gap.

(An Average business activity was observed in the garment sector. Consumer spending is less due to bad economic situation around the globe. Negligible business may expect in days to come due to less demand)

1- The garment demand remained slow in general 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.
2- As a result of economic uncertainty, some countries have seen a decrease in garment demand as consumers cut back on spending.
3- In terms of order placements, Pakistan’s garment industry received a negligible number of orders from European and US customers.
4- Normally, factories receive projection-based orders from large retailers, but the market has been slow, owing in part to global inflation.
5- Factory deliveries are available from Aug 2024 onward.
6- 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.

Crude Oil:

1- Crude Oil prices opened at USD 79.12 with lower level as compared to last week closing figures. in this week, crude oil prices showed mix trend and closed on lower side by the end of week.
2- In last day of the week, Crude Oil prices closed at USD 80.06 with an increase of 0.94 USD cents as of the opening figure of the week.

  Opening of Week Closing Of Week Change
Price 79.12 80.06 0.94

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 275.45 275.40
LC 120 Days 259.64 259.59
Open Market 281.18 275.12

New York Cotton Future:

The New York Cotton futures started the week higher than the previous week’s closing figures. NYCF showed fluctuations on both sides and closed on the lower side by the end of the week.

1- May 2024 closed at 75.89, down 174 points from the previous week.
2- July 2024 closed at 75.82, experiencing a downward of 124 points from the previous week.
3- October 2024 closed at 74.97 showing a drop trend of 66 points from the previous week.
4- December 2024 closed at 76.58, lower by 54 points from the previous week.

Liver Pool Indices:

1- Liverpool Index A opened at 86.40 on higher level than the previous week of closing figure.
2- In this week Index “A” showed a downward trend and closed on the lower side by the end of the week.
3- At last day of the week, LPI “A” closed at 85.10 with a decrease of 130 points.

  Opening of the Week Closing of the Week Change
Index A 86.40 85.10 -1.30