Pakistan Local Cotton Market:
(The local cotton market remains firm due to supply disruptions from heavy rains and international price trends. Pakistan’s spinners are increasingly turning to imports to meet demand, while global markets are influenced by lower production forecasts and support from rising crude oil prices. Although demand remains sluggish, a weaker dollar and weather concerns provide some market support)
1- The local cotton market displayed a firm trend, driven by increased business activity and a rising international cotton market. Last week’s price firmness was primarily due to reduced activity and crop damage from ongoing rains in the cotton belt, making the current price rise more of a recovery.
2- Heavy rains have severely damaged cotton crops in Sindh and Punjab, potentially reducing overall production. Pakistan’s spinners are turning to imports due to local shortages and quality concerns, with import agreements for around 1.6 million bales already signed.
3- ICE cotton continued its upward trend on Thursday, driven by lower production estimates from USDA’s WASDE report and support from rising crude oil and equity markets. Gains were limited due to slow demand and reduced consumption estimates.
4- Dollar’s decline made cotton more attractive for overseas buyers, while concerns about hurricanes added market support.
5- The USDA’s September 2024 WASDE report shows lower U.S. cotton production, exports, and ending stocks for 2024/25, with production down to 14.5 million bales due to reduced yields in the Southwest. Globally, cotton production, consumption, and trade are also reduced, with smaller crops in the U.S., India, and Pakistan offset by a larger crop in China. World trade is down 550,000 bales due to reduced imports by China, Vietnam, Turkey, and Bangladesh. Ending stocks are reduced by 1.1 million bales to 76.5 million globally.
6- The Monetary Policy Committee (MPC) reduced the policy rate by 200 basis points to 17.5%, citing factors affecting the inflation outlook. The MPC believes the real interest rate remains positive enough to bring inflation down to the 5-7% target and ensure macroeconomic stability.
7- Last week, cotton prices in Punjab and Sindh showed firm to upward trend from Rs 17,900 to Rs 19,000 per maund, (USC 0.79~0.84 lbs.). In Sindh, cotton rate was Rs 17,900 to Rs 18,300 per maund, while in Punjab it ranged from Rs 18,400 to Rs 19,000 per maund. KCA rose Rs. 200 to at the of 18,500 Rs per maund, PSF dropped Rs. 3 to at Rs. 357 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 domestic yarn market remained steady this week, despite limited business activity. Cash flow constraints continue to pose a significant challenge.
2- Suppliers navigated a challenging landscape, balancing low inventory levels amidst rising energy and production costs. While bank markups declined by two points this week.
3- PSF prices declined by Rs.3/kg on Sep 9, 2024, and are projected to decrease further by Rs 5-7/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 | 3300 – 3400 | 480 – 490 |
| 20/1 Carded Weaving | 3400 – 3500 | 490 – 505 |
| 30/1 Carded Weaving | 3800 – 3920 | 550 – 570 |
| 20/1 Combed Weaving | 3850 – 4000 | 555 – 580 |
| 30/1 PC Carded Weaving 52:48 | 3150 – 3450 | 455 – 500 |
| 40/1 Combed Compact Weaving | 4425 – 4550 | 640 – 660 |
| 60/1 Combed Compact Weaving | 5800 – 6000 | 840 – 870 |
| 80/1 Combed Compact Weaving | 7950 – 8150 | 1150 – 1180 |
| 40/1 CVC Carded Weaving 60:40 | 3950 – 4100 | 570 – 595 |
Export Yarn Market:
(Export yarn market showed limited business activity from customers of all the regions. Customers floated good numbers of inquiries against which limited orders were matured too. We might see another buying spree in days to come)
1- Export yarn market remained under sluggish business activity as customers remained aside of buying. Although there were good numbers of enquiries floated by customers but suppliers increased their asking prices in line of cotton prices due to which order confirmation remained slow.
2- Cotton prices in domestic and international market is increasing due to which suppliers increased their prices as well.
3- We might see another wave of buying in days to come as suppliers are easily selling good quantities in domestic market.
4- Chinese customers remained in market and kept on floating inquiries. Business has been concluded as well and we might see another buying spree in days to come.
5- European customers are back from holidays and there is good requirement form customers. We might see orders placements in next week.
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Local Fabric Market:
(Local fabric market remained mixed as wider width and local brands are actively booking the fabric however dyeing units were slow. Looking ahead, it is expected that the market activity will improve in coming weeks however, prices are anticipated to trend upward)
1- The local fabric market experienced slow sentiments throughout the week as the dyeing units were not actively buying however suppliers got good support in wider width fabric.
2- Finishing mills reported increase in inquiries and successfully booked orders after tough negotiations. Local brands continued to support the market, placing orders at last week’s price. Consequently, the week concluded with limited trading activity for both narrow and wider-width fabrics.
3- Sulzer loom units continued to book orders based on conversion rates. However, they showed a preference for selling at fabric rates to achieve better margins.
4- Major weavers have secured bookings for narrow-width looms until the third week of October 2024, while wider-width looms are booked until the third week of November 2024, with onward deliveries being offered.
Export Fabric Market:
(Export fabric market is getting improved gradually after slow pace during last couple of weeks. The prices for narrow and wider width remained stable. Suppliers are hopeful to get more orders in days to come from all of the origins)
1- The export market continued with slow pace since last couple of weeks as customers have exchanged limited number of inquiries,
2- Suppliers have received inquiries from China, Vietnam, Korea, Japan and Indonesia resultant limited buying during the week.
3- Asking prices are stable since few weeks due to stable raw material prices.
4- Suppliers are booked till end of Oct and offering early ~ mid Nov onward deliveries.
5- European, African and USA buyers were actively discussing new inquiries both in narrow and wider width fabric.
6- Suppliers are hopeful to get more orders from these markets as they are trying to offer most competitive prices to extend their sales as long as possible.
7- Wider width suppliers are booked till end of Nov and offering Dec onward deliveries.
| Local and Export Fabric Prices
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Bed Linen and Towel:
(While production remains a bit stable and demand is set to rise, the industry is facing major hurdles such as inflation, high energy costs and squeezed margins. The upcoming week will observe a relatively good inquiry flow and business activity. On the other hand most of the supplier’s management will be engaged at
US Market week)
1- This week, production in the home textiles sector remains steady, with capacity utilization across vertically integrated units holding at majority.
2- Both processing and stitching lines are performing consistently. Most production schedules are booked until next month. Although orders were previously secured at competitive rates, some manufacturers are now facing slimmer-than-expected margins upon review of post-production financials.
3- Following a quiet phase due to the European holiday season, customer operations are returning to normal.
4- We anticipate a surge in inquiries in coming week with a good likelihood of order confirmations. The backlog from pre-holiday inquiries is also expected to translate into firm bookings in the coming weeks. The next two weeks should bring more renegotiations and new orders, with a potential wave of confirmations by month’s end.
Garments:
(Because of global economic uncertainty, garment demand is often slow but it’s going towards improvement. Orders from the EU and the US were increased. The denim industry anticipates orders for sustainable products during the fourth quarter)
1- Pakistani garment factories are searching for large volumes to fill their production space.
2- Some factories have received orders from export customers and are filling them. Some major global apparel labels have also begun placing orders with their usual production operations. This has provided a gleam of hope for the forthcoming seasons.
3- Some American and European brands are also working on new developments for the FW25 season. At the same time, other garment factories are still waiting for orders to fill their manufacturing capacity.
4- Some garment manufacturers have recently received good orders from their customers. Overall, factories have delivery available 90 to 100 days after order confirmation. However, factories are booked till End of Nov 2024.
5- 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.
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Crude Oil:
1- Crude Oil prices opened at USD 68.71 with higher level as compared to last week closing figures. in this week, crude oil prices showed downward trend and closed on lower side by the end of week.
2- In last day of the week, Crude Oil price closed at USD 68.65 with decrease of 0.06 USD cents as of opening figure of week.
| Opening of Week | Closing Of Week | Change | |
| Price | 68.71 | 68.65 | -0.06 |
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 positive note with figure of 1.10 and British Pound also closed on positive note with figure 1.31 against USD.
| Selling | Buying | |
| LC Sight | 276.28 | 276.23 |
| LC 120 Days | 263.00 | 262.95 |
| Open Market | 281.08 | 275.57 |
New York Cotton Future:
The New York Cotton futures started the week higher than the previous week’s closing figures. However, NYCF showed an upward trend in this week and closed on higher side by the end of week.
1- October 2024 closed at 69.48, experiencing a increase of 194 points from the previous week.
2- December 2024 closed at 69.82 showing a higher trend of 213 points from the previous week.
3- March 2025 closed at 71.24, increase by 155 points from the previous week.
4- May 2025 closed at 72.41, rose of 161 points from the previous week.
Liver Pool Indices:
1- Liverpool Index A was opened at 80.80 on below levels from the previous week of closing figure.
2- In this week Index “A” showed mix trend, hence closed on higher side by the end of week.
3- At last day of the week, LPI “A” closed at 81.10 with increase of 30 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 80.80 | 81.10 | 0.30 |
