Pakistan Local Cotton Market:
(The global cotton market is experiencing downward pressure due to declining prices, weak demand, and a stronger US dollar, creating challenges for both international and local markets. Despite some recovery, uncertainty remains high, with buyers hesitant to make purchases until market conditions stabilize. This situation is particularly difficult for Pakistani farmers facing reduced arrivals and unfavorable pricing)
1- In the local cotton market, business activity remained moderate due to the ongoing monsoon and rainy season.
2- Buyers were wary, delaying purchases in anticipation of further drops in local cotton prices, especially as international cotton prices continue to fall globally. With textile product demand not rising, cotton consumption is expected to stay below demand levels. These factors have created uncertainty among buyers, leading them to wait until the market stabilizes.
3- The prices of lint and raw cotton have decreased by Rs 500 to 600 per 40kg, following the international trend and an improvement in cotton arrivals. However, the PCGA report indicates that arrivals are still 40~45% lower than during the same period last year.
4- Despite this, international cotton prices and low demand are not favorable for Pakistani cotton and farmers. Pakistani textile exporters face additional challenges from rising costs and new tax burdens, compounding an already difficult year.
5- ICE cotton prices declined after the release of the US cotton export sales report, unsettling the market. The US cotton market remained under pressure, with expectations of further declines, though some recovery was seen on last session. ICE cotton the lowest since October 7, 2020.
6- A stronger dollar, driven by eased economic concerns and lower-than-expected unemployment claims, made cotton purchases more expensive for foreign buyers, contributing to the price drop.
7- Last week, cotton prices in Punjab and Sindh showed drop trend from Rs 16,800 to Rs 18,100 per maund, (USC 0.74~0.80 lbs). In Sindh, cotton rate was Rs 16,800 to Rs 18,100 per maund, while in Punjab it ranged from Rs 17,450 to Rs 18,100 per maund. KCA was down rs. 400 and reached from Rs 17,800 t0 17,400 Rs per maund, while PSF came down rs.10 to at Rs. 365 PKR/kg.
Local Yarn Market:
(The local yarn market continues to exhibit sluggishness, with yarn prices holding steady under pressure. Suppliers navigate a challenging landscape marked by restrained inventory levels and escalating production costs)
1- The local yarn market exhibited subdued activity with yarn prices decreasing by Rs 3-5/lb. Fine count yarns also witnessed reduced demand due to import.
2- Suppliers maintained minimal inventory levels while grappling with escalating energy and production costs.
3- PSF prices experienced a decline of Rs.10/kg on August 7, 2024, and are projected to decrease further by Rs 3-4/kg next week.
4- Faisalabad’s market displayed continued sluggishness, especially in viscose and fine-count yarn sectors. Cash flow constraints persisted, hindering business operations.
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3250 – 3350 | 470 – 485 |
| 20/1 Carded Weaving | 3400 – 3500 | 490 – 505 |
| 30/1 Carded Weaving | 3800 – 3900 | 550 – 565 |
| 20/1 Combed Weaving | 3950 – 4100 | 570 – 595 |
| 30/1 PC Carded Weaving 52:48 | 3250 – 3550 | 470 – 515 |
| 40/1 Combed Compact Weaving | 4475 – 4600 | 650 – 665 |
| 60/1 Combed Compact Weaving | 6000 – 6250 | 870 – 905 |
| 80/1 Combed Compact Weaving | 8100 – 8300 | 1170 – 1200 |
| 40/1 CVC Carded Weaving 60:40 | 4100 – 4200 | 595 – 610 |
Export Yarn Market:
(Export yarn market remained under average business activity. customers showed positive activity & confirmed orders with selected suppliers)
1- Export yarn market showed sluggish business activity during the week under review. Customers from China and Europe remained in market and kept on checking prices.
2- Suppliers were firm in asking their prices but were interested to close business in presence of firm bids.
3- There has been a handsome activity in domestic market which kept suppliers aside of panic selling in exports.
4- New cotton arrival is increasing and suppliers are buying cotton to cover their needs. However, cotton price is showing stability due to aggressive buying from spinners and expectation of short crop.
5- Chinese customers kept on checking prices and deals were also closed with selected brands where customers achieved their target prices. although china currency is appreciating against Usd but continuous drop of cotton kept customers showed slow buying.
6- European customers are closing for holidays and week was remained under minimal business activity.
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Local Fabric Market:
(Moderate business activity was seen in local fabric. Despite the lack of inquiries from local finishers, local brands remained active. We anticipate that market sentiments will remain slow in the absence of bulk inquiries from local finishers)
1- Throughout the current week, the local fabric market experienced subdued activity, culminating in moderate transactions for both narrow and wider-width fabrics. Despite the lack of inquiries from local finishers, local brands remained active, providing essential support to the market.
2- As the week progressed, limited business materialization was observed for both fabric widths. Currently, weavers are booked for narrow-width looms until mid-September and have coverage for wider-width looms until the end of September 2024, with onward deliveries being offered.
Export Fabric Market:
(For the Export fabric market, limited number of inquiries were exchanged from Far Eastern, EU and USA buyers due to summer holidays season. The prices were stable due to stable yarn prices. The business activity may started by early of Sep only)
1- This is the summer holidays season everywhere thus the business activity was less during the week.
2- Far Eastern customers were partially holidays that is why they have exchanged limited number of inquiries resultant limited booking during the week
3- Asking prices were stable due to stable yarn prices.
4- The suppliers are still struggling to survive due to high utilities and bank interest causing high cost of production
5- Currently the suppliers are booked till end of mid of Sep and offering end Sep onward deliveries.
6- The European customers are mostly on summer vacations and sharing limited number of inquiries
7- Wider-width fabric prices were stable as well; however, the suppliers are comfortably booked till mid of Oct and offering end Oct onward deliveries
8- The suppliers are getting good support from the local brands, thus maintained good sales coverage.
| Local and Export Fabric Prices
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Bed Linen and Towel:
(The home textile industry in Pakistan is at a pivotal point. Despite facing significant challenges such as high energy costs and slim profit margins, there remains demand from A& Z and European markets although are on holiday. We are expecting that business will be improved from Europe in September once they resume the offices)
1- Pakistan’s home textile (HT) industry is facing a critical threat due to rising energy costs. The current tariffs are the highest in the region, putting immense pressure on domestic manufacturers. Many production houses are operating with minimal profit margins, just breaking even, or even incurring losses to secure the business in hand. This precarious situation is unsustainable and could lead to widespread industrial shutdowns if not addressed promptly.
2- The high energy tariffs are unsustainable and severely impacting the profitability of the HT industry, making it difficult for manufacturers to maintain their operations.
3- The industry is currently surviving on thin margins and break-even points. This is not a sustainable model and could result in long-term damage, potentially leading to the closure of production units.
4- Despite these significant challenges, there is still demand from customers especially from Europe and A&Z. The HT industry receives the flow of inquiries from Europe and expects to materialize the deals in September once the Europeans come back from holidays, indicating that there are business opportunities available. This shows that the market is still open to order confirmations and bookings, but the industry needs immediate support to capitalize on these opportunities.
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; nevertheless, there is some hope that some of the country’s top retail brands have started placing orders with specific units)
1- The Pakistani apparel industry is suffering unequal commercial activity, with manufacturers not obtaining enough orders to meet manufacturing capacity.
2- Because of inflation, some shops and brands have reduced their purchasing.
3- Large retailers typically placed orders based on projections, but market sentiment has slowed in the second quarter of 2024 due to global inflation.
4- Factories plan to supply onwards orders by the mid of Nov 2024.
5- Sustainability is vital in the apparel industry to reduce environmental impact and improve working conditions.
6- The global denim market is struggling with inflation, but manufacturers remain optimistic about the forthcoming seasons as consumers continue to have a strong demand.
Crude Oil:
1- Crude Oil prices opened at USD 72.94 with lower 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 76.84 with increase of 90 USD cents as of opening figure of week.
| Opening of Week | Closing Of Week | Change | |
| Price | 72.94 | 76.84 | 3.90 |
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 1.09 and British Pound also closed on positive note with figure 1.27 against USD..
| Selling | Buying | |
| LC Sight | 276.40 | 276.35 |
| LC 120 Days | 262.25 | 262.21 |
| Open Market | 281.89 | 275.81 |
New York Cotton Future:
The New York Cotton futures started the week lower than the previous week’s closing figures. However, NYCF showed a downward trend and later on closing took jump and closed on higher side by the end of week.
1- October 2024 closed at 67.09, experiencing a increase of 54 points from the previous week.
2- December 2024 closed at 68.34 showing a higher trend of 56 points from the previous week.
3- March 2025 closed at 69.68, rose by 26 points from the previous week.
4- May 2025 closed at 70.91, increase of 24 points from the previous week
Liver Pool Indices:
Liverpool Index A was opened at 79.35 lower levels than the previous week of closing figure.
In this week Index “A” showed a mixed trend and closed on the slightly lower side by the end of the week.
At the last day of the week, LPI “A” closed at 79.20 with a decrease of 15 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 79.35 | 79.20 | -0.15 |
