Pakistan Local Cotton Market:
(Local cotton market activity remained slow as firm prices persisted despite declining quality, with many buyers securing imported cotton. International cotton prices hit a two-month low amid U.S. election impacts and a strong dollar, further pressuring the local market. Cotton arrivals in Pakistan dropped sharply year-over-year, while lower crude oil prices and a strong dollar index also contributed to the downward trend in U.S. cotton)
1- Activity in the local cotton market was relatively slow this week, though prices remained firm as quality levels began to decline, a trend expected to continue. Buyer interest was limited, driven by the downward trend in international cotton prices. Anticipating a shortage of high-quality local cotton, many buyers opted to book more imported cotton to secure better quality while it’s available.
2- The international cotton market has reached a two-month low due to the U.S. elections and a strong dollar, which also put some pressure on the local cotton market. Additionally, over 3 million bales of imported cotton orders from the USA and Brazil have been finalized, with more expected soon from Afghanistan’s upcoming new crop.
3- As PCGA issued cotton arrivals total 4,291,105 bales, a sharp 36.84% drop from the 6,794,006 bales reported on the same date last year. In Punjab, production has decreased to 1,842,257 bales from last year’s 2,996,921, reflecting a 38.53% decline. Sindh’s production stands at 2,448,848 bales, down by 35.51% from last year’s 3,797,085 bales, while Baluchistan has recorded a production of 131,800 bales to date.
4- Due to a stronger US dollar and weaker crude oil prices. An increase in the dollar index makes cotton purchases more expensive for overseas buyers. The decline in crude oil prices also impacted cotton, as it reduces the cost of producing polyester, a synthetic alternative to natural cotton.
5- WTI crude oil declined by 3 per cent following an increase on Tuesday. This decrease contributed to the downward movement of US cotton. The US dollar index surged to a four-month high due to expectations of economic growth driven by new US immigration and tax policies
6- The USDA’s November 2024 WASDE report highlights a decrease in U.S. and global cotton production, exports, and consumption for the 2024/25 season. U.S. production is slightly lowered, with Texas seeing reduced output while Georgia’s is up, keeping the national yield steady at 789 pounds per acre. U.S. exports are down by 200,000 bales, raising ending stocks to 4.3 million. Globally, reductions in production, consumption, and trade are seen, with notable decreases in Pakistan, Turkmenistan, and Turkey. World ending stocks are down, largely due to lower stock levels in India, Turkmenistan, and Pakistan.
7- Last week, cotton prices in Punjab and Sindh showed firm trend and traded in range of 17,100 to Rs 18,300 per maund, (USC 75~ 81 lbs). In Sindh, cotton rate was Rs 17,200 to Rs 18,200 per maund, while in Punjab it ranged from Rs 17,700 to Rs 18,300 per maund. KCA up rs. 200 to at the of.18,000 Rs per maund, PSF was same at Rs. 357 PKR/kg.
Local Yarn Market:
(The local yarn market showed signs of improvement this week, with steady prices and increased demand, particularly for fine cotton and PV yarns. While suppliers maintained lean inventories to meet prompt delivery requirements, cash flow constraints remained a challenge. The overall market outlook remains cautiously optimistic, with stable prices and increased demand driving positive sentiment)
1- The local yarn market exhibited stability this week, with steady yarn prices. Demand for prompt deliveries increased leading to improved market activity.
2- Suppliers continued to operate with lean inventory levels prioritizing timely deliveries to meet market demand.
3- PSF prices held steady this week and are projected to remain stable in the coming week.
4- The Faisalabad yarn market experienced increased activity, with strong demand for fine cotton counts and polyester-viscose (PV) yarns.
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3325 – 3400 | 480 – 490 |
| 20/1 Carded Weaving | 3400 – 3500 | 490 – 505 |
| 30/1 Carded Weaving | 3725 – 3880 | 540 – 560 |
| 20/1 Combed Weaving | 3900 – 4000 | 565 – 580 |
| 30/1 PC Carded Weaving 52:48 | 3100 – 3300 | 450 – 480 |
| 40/1 Combed Compact Weaving | 4400 – 4500 | 635 – 650 |
| 60/1 Combed Compact Weaving | 5950 – 6150 | 860 – 890 |
| 80/1 Combed Compact Weaving | 8000 – 8200 | 1160 – 1190 |
| 40/1 CVC Carded Weaving 60:40 | 3850 – 3950 | 560 – 570 |
Export Yarn Market:
(Export yarn market remained under mixed tone. Customers form all regions remained active in inquiring prices and orders were also closed. Suppliers kept their prices firm and stable due to good sales in hand)
1- The export yarn market remained firm and stable with nominal business activity.
2- There has been good numbers of enquiries floated by customers against which order materialization was dull.
3- Major reason was changes in international scenario due to which customers form all the regions remained under hold.
4- However, good numbers of orders are under discussion and we might see handsome placements in days to come.
5- Prices are expected to remain stable.
6- Chinese buyers were slower to place new orders because of depreciation of RMB against Usd.
7- However, things are getting settled and it is expected that customer will indulge buying in days to come.
8- European buyers were more active, finalizing several deals this week, with more inquiries ongoing, hinting at the possibility of additional purchases in the coming weeks.
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Local Fabric Market:
(The local fabric market remained mixed during the week. The processing units were cautiously buying; however, the local brands continued buying in fine-count articles. An improved business activity is expected in the days to come)
1- The local fabric market remained mixed during the week under review.
2- The dyeing units are operating almost in full dyeing capacity; however, cautious buying was observed from them.
3- The local brands continued their booking mainly in fine counts and suppliers are managing the orders based on imported yarn, which makes them price competitive
4- Suppliers are booked till end of Dec for narrow width and wider width looms, booked till Jan and offering Feb onward deliveries.
Export Fabric Market:
(Healthy business activity was seen from export markets including Far East Europe and USA. Prices are stable since last couple of months. Suppliers are expecting average business in days to come)
1- A constant business activity was seen in export fabric markets.
2- Customers from Japan, Indonesia, Vietnam, Korea and China has exchanged reasonable quantity of orders resultant healthy business activity was seen during the week.
3- Asking prices were stable due to stable raw material prices.
4- Suppliers are booked till end of Dec and offering early Jan onward deliveries.
5- Average business activity was observed from European customers both in narrow and wider width fabrics.
6- USA buyers were active and booked good quantity of orders mainly in finished fabric.
7- Wider width suppliers have good sales coverage and offering End Jan ~ mid Feb onward deliveries.
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Local and Export Fabric Prices
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Bed Linen and Towel:
(Confirmed orders continue to decline despite steady demand and inquiries. Reduced profitability is driving smaller suppliers to focus on local commercial production, while larger, well-funded suppliers are leveraging their resources of stock holding powers and more marketing contribution and marketing strength to attract new business)
1- Ongoing Trend This week mirrors previous weeks, with business activity evident in demand and supplier inquiries, but confirmed orders remain low.
2- Profits on confirmed orders have dropped sharply, pushing small to medium suppliers to pivot some of their capacity towards local commercial production.
3- Small & Medium Suppliers, moving part of their production operations to local commercial business due to reduced profit margins in exports.
4- Large & Integrated Suppliers are relying on strong marketing contribution, long time financial stability, and holding power to retain raw material reserves (yarns and fabrics) to secure orders and attract new customers.
Garments:
(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 selected units)
1- The garment industry in Pakistan is likely to continue to contribute significantly to the country’s economy, despite potential obstacles posed by the industry’s need to adapt to changing global market conditions.
2- However, knitting and dying capacities are being partially filled until the End Jan 2025, according to various sources. This demonstrates the positive market attitude in Pakistan due to increased demand from numerous European clients and some from the US market, particularly from several large retailers.
3- A few factories are also creating developments for FW25/SS26 collection. Meanwhile, there are still some factories hiring more labor to fulfill customer’s demands.
4- With Challenges like fluctuating dollar rates and cotton prices, denim producers are finding it hard to secure customer-required FOB as compared to other denim countries.
Crude Oil:
1- Crude Oil prices opened at USD 71.47 with higher 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 price closed at USD 70.38 with decrease of 1.09 USD cents as of opening figure of week.
| Opening of Week | Closing Of Week | Change | |
| Price | 71.47 | 70.38 | -1.09 |
Exchange Rate:
1- In last week values of Pak rupee apricated 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 negative note with figure of 1.07 and British Pound also closed on negative note with figure 1.29 against USD.
| Selling | Buying | |
| LC Sight | 276.16 | 276.11 |
| LC 120 Days | 266.17 | 266.12 |
| Open Market | 281.08 | 275.07 |
New York Cotton Future:
The New York Cotton Futures (NYCF) opened the week lower than the previous week’s close, displaying a downward trend throughout.
Although there was a recovery in the second-to-last session, the market dipped again before ultimately closing on a higher note at the end of the week.
1- December 2024 Closed at 70.98, marking a rise of 105 points from the previous week.
2- March 2025 Ended at 73.25, up by 98 points compared to the previous week.
3- May 2025 Finished at 74.59, reflecting an increase of 83 points from the previous week.
4- July 2025 Closed at 75.76, a jump of 73 points from the previous week.
Liver Pool Indices:
1- Liverpool Index A was opened at 81.70 a lower level than the previous week of closing figure.
2- In this week Index “A” showed mix trend and closed on slightly higher side by the end of week.
3- At the last day of the week, LPI “A” closed at 82.00 with an increase of 30 points
| Opening of the Week | Closing of the Week | Change | |
| Index A | 81.70 | 82.00 | 0.20 |
