Pakistan Local Cotton Market:
(In the local cotton market, prices are stable and firm due to weather delays and limited quality cotton but are expected to drop with new arrivals as buyers turn to similarly priced U.S. cotton. Market activity remains cautious, influenced by international factors)
1- In the local cotton market, prices remained firm due to rainy weather and limited availability of quality cotton.
2- The monsoon has also delayed the arrival of the new crop, contributing to the firmness in prices and moderate market activity. While some buyers in need are making purchases, most are waiting for the full arrival of cotton, expected from mid-July onward.
3- Prices are expected to drop after the arrival of new cotton, as the international market is not supporting the local market. Additionally, many buyers are interested in imported U.S. cotton, which is currently priced similarly to local cotton.
4- ICE cotton very thin trade, as most traders remained inactive due to the Independence Day holiday. Following the Federal Reserve meeting, the dollar index decreased while crude oil prices remained steady. Traders adopted a wait-and-watch approach in anticipation of the US export sales report.
5- The US dollar index eased 0.5 per cent to reach its lowest level since June 13 this year. It was noted at 105.31 after the Federal Reserve meeting. The US central bank indicated the beginning of easing policy rates. An easing dollar limits the decline in cotton futures.
6- Weather came to center stage as Hurricane Beryl is approaching South Texas, which could impact cotton crops positively or negatively. An extensive heat wave is expected across the US, with extreme temperatures forecast in key cotton-growing regions. Cotton drought conditions are expanding compared to last week. It is now noted at 19 per cent, up by 3 per cent.
7- Last week, cotton prices in Punjab and Sindh showed firmness from Rs 18,200 to Rs 19,700 per maund, (USC 0.80~0.87 lbs). In Sindh, cotton rate was Rs 18,200 to Rs 18,700 per maund, while in Punjab it ranged from Rs 18,800 to Rs 19,700 per maund. KCA up Rs. 400 to at Rs. 18,400 per maund and PSF remained same at
Rs. 375 PKR/kg.
Local Yarn Market:
(The local yarn market outlook remains optimistic with stable prices. Furthermore, movement will clear out by the next week or mid-July)
1- The domestic yarn market continues to see moderate activity, with steady yarn prices, However, new taxes imposed in the budget and the withdrawal of the 0% GST facility under the Export Finance Scheme (EFS) have added pressure.
2- Mills are facing pressure due to inflated energy costs & gas bills. Ready stocks are not available with the units.
3- PSF prices remained stable this week and are expected to continue stable by next week.
4- The Faisalabad market saw selective activity and consistent order bookings for viscose and fine-count yarns. Cash flow shortages remain a challenge, however.
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3300 – 3350 | 480 – 485 |
| 20/1 Carded Weaving | 3450 – 3550 | 500 – 515 |
| 30/1 Carded Weaving | 3850 – 3950 | 560 – 570 |
| 20/1 Combed Weaving | 4000 – 4150 | 580 – 600 |
| 30/1 PC Carded Weaving 52:48 | 3350 – 3500 | 485 – 505 |
| 40/1 Combed Compact Weaving | 4600 – 4700 | 665 – 680 |
| 60/1 Combed Compact Weaving | 6150 – 6300 | 890 – 915 |
| 80/1 Combed Compact Weaving | 8100 – 8300 | 1175 – 1200 |
| 40/1 CVC Carded Weaving 60:40 | 4150 – 4250 | 600 – 615 |
Export Yarn Market:
(The export yarn market is experiencing softness and bearish activity, with instability in cotton prices adding uncertainty for spinners. Despite this, European customers remain active, and the anticipated drop in local cotton prices is expected to boost export orders. Suppliers are facing pressure from existing stocks and high energy costs, impacting the viability of exports)
1- The export yarn market displayed softness and slow sentiment, with bearish business activity.
2- In China, market dullness prevailed, with no major buyers purchasing despite lower prices. Inquiries were present but did not convert into sales.
3- Cotton prices remained unstable throughout the month, creating uncertainty among spinners.
4- Local cotton prices dropped this week and are expected to decrease further due to the significant arrival of new cotton in the coming days.
5- Suppliers are in a difficult position due to existing stock levels and high energy costs, which are adding pressure and reducing the viability of exports.
6- European customers remained active, issuing a decent number of inquiries. Orders were closed with slight negotiations with their chosen suppliers.
7- It is expected that the export market will receive substantial orders in the near future due to the decrease in cotton prices
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Local Fabric Market:
(The moderate level of activity was seen in local fabric market both for narrow and wider width fabric. Customers are asking lower target prices hence limited buying was noticed. Looking ahead to the upcoming week, the market is anticipated to uphold its steady course. The pricing trend is expected to remain robust, reflecting a firm market sentiment)
1- In the current week under review, the local textile market has maintained a consistent performance, with a moderate level of activity noted for both narrow and wider-width fabrics.
2- Local brands supported the market and shared inquiries and business materialization of orders observed after tough negotiations.
3- Currently, the booking status for narrow-width looms extends from the end of July to early August 2024, indicating a healthy demand. Wide-width looms have reached full capacity until the third week of August 2024. Additionally, specialized looms have been pre-booked until the end of August, with the weavers offering delivery slots beyond this period.
Export Fabric Market:
(For the export fabric, the flow of inquiry was good during the week and some bulk orders are under discussion however there is a hard negotiation on price. It is expected that order placement will be finalized during next week. The prices are expected to remain stable for next couple of weeks)
1- Moderate business activity was observed during the week from Far Eastern markets.
2- Customers were engaged in discussion of new orders however there is price pressure hence the new deals are still under negotiation
3- Asking prices were stable and firm due to stable yarn prices.
4- Customers are expecting lower prices due to weak cotton prices however the spinning units were not reducing their prices due to high production cost.
5- The suppliers are booked their looms till end of July ~ Mid of Aug and offering onward deliveries.
6- European and USA buyers were active during the week as they were discussing new orders both for narrow and wider width fabric.
7- Limited buying was witnessed as suppliers could not confirm bulk order due to much gap between offered and target prices.
8- Wider width suppliers are booked till mid of Sep and offering End Sep onward deliveries.
| Local and Export Fabric Prices
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Bed Linen and Towel:
(Despite good flow of inquiries in home textile, order confirmations are still very low due to constant high energy costs and little consideration of Lower yarn rate anticipation. High inflation, rising energy costs and very competitive target prices are badly affecting HT industry)
1- A continuation of relative better activity in terms of demand; good flow of inquiries and orders observed in current week.
2- The critical deadlock between Customer targets and supplier offered prices remain a bone of contention in order conformations.
3- The industry is forced to make bookings and locking prices at loss. Although Yarn rate is anticipated to fall down in coming weeks but Marketing concerns are not taking this anticipation into account in costing parameters.
4- On the other hand, energy Tariffs are constant source of high costs which is very severely effecting order confirmations.
Garments:
(Overall garment factories are operating on sixty to seventy percent of their production capacities and striving to grab more orders to fulfill their empty space. For that, factories are also ready to squeeze their margins to clinch the orders. Some brands are also working on FW25 developments which show a healthy sign for future orders)
1- The Pakistan garment industry is having trouble operating at full capacity.
2- The majority of export clients do not place large orders, such as those for the entire season, because they do not believe that shops would have a strong demand.
3- Orders are placed in segments, just taking urgent demands into account.
4- The majority of clothing manufacturers are operating at sixty to seventy percent of their capacity, and they are actively seeking more orders to replenish the capacity that is not being utilized.
5- A few US and EU brands are developing their FW25 products. Factories can often begin accepting orders by the end of September, although this will depend on the kinds of clothing and accessories needed.
Crude Oil:
1- Crude Oil prices opened at USD 83.38 with lower level as compared to last week closing figures. in this week, crude oil prices showed mix trend and closed on slight lower side by the end of week.
2- In last day of the week, Crude Oil price closed at USD 83.16 with decrease of 0.22 USD cents as of opening figure of week.
| Opening of Week | Closing Of Week | Change | |
| Price | 83.38 | 83.16 | -0.22 |
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 1.28 against USD.
| Selling | Buying | |
| LC Sight | 276.10 | 276.05 |
| LC 120 Days | 261.13 | 261.08 |
| Open Market | 281.34 | 275.62 |
New York Cotton Future:
The New York Cotton futures started the week higher than the previous week’s closing figures.
1- NYCF showed a downward trend in this week and closed on lower side by the end of week.
2- October 2024 closed at 69.48, experiencing a drop of 276 points from the previous week.
3- December 2024 closed at 70.98 showing a lower trend of 212 points from the previous week.
4- March 2025 closed at 72.71, drop by 205 points from the previous week.
5- May 2025 closed at 74.10, lost of 199 points from the previous week..
Liver Pool Indices:
1- Liverpool Index A was opened at 84.70 on the lower side of 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 82.75 with an increase of 195 points..
| Opening of the Week | Closing of the Week | Change | |
| Index A | 84.70 | 82.75 | -1.95 |
