Pakistan Local Cotton Market:
(The local cotton market remains firm amid fears of a quality shortage, with buyers also securing imported cotton. Meanwhile, the textile sector struggles due to high costs and increased cotton yarn imports, impacting spinners. Internationally, US cotton prices are at a low due to cheaper polyester and upcoming general elections, while harvest conditions improve with drier weather)
1- The local cotton market remained active with firm price levels in this week. Buyers were remained active in buying and trying to cover their stocks in fear that quality cotton may short in a days to come. Followed the PCGA report which is showing 50% less crop from the last year.
2- Meanwhile, most of the buyers are also covering imported cotton due to the realistic prices now a days and booked 3 million bales from which arrivals have been started.
3- There is a slight increase in textile sector exports, but overall, the textile sector is not doing well. The reasons include unusually high energy costs, delays in tax refunds, high interest rates, and other issues. Specifically, textile spinners are facing significant difficulties due to the large-scale import of cotton yarn, which has caused distress among them.
4- Climatic changes threaten agriculture in Pakistan by impacting cotton growth through increased temperatures and altered rainfall patterns, affecting yields, production, and quality.
5- Cotton is crucial for its fiber and as a key contributor to the oil industry, with 18.8% of Pakistan’s oil demand met by cotton seeds, highlighting the need to enhance cotton oil production.
6- ICE cotton continued to see declining trend this week trading sessions. US cotton prices hit new recent low due to fall in crude oil. Cheaper crude oil made polyester, a man-made alternative fiber of cotton, more affordable.
7- The international cotton market has hit a seven-week low, marking its lowest level since April. According to sources, the U.S. presidential elections are a major reason behind this downturn.
8- Drier conditions are expected across much of the US crop belt this week, which will aid in drying and harvesting cotton. US cotton is expected to remain range bound between 68-72 cents.
9- Last week, cotton prices in Punjab and Sindh showed soft trend and traded in range of 16,700 to Rs 18,100 per maund, (USC 0.74~0.80 lbs). In Sindh, cotton rate was Rs 16,700 to Rs 17,500 per maund, while in Punjab it ranged from Rs 17,600 to Rs 18,100 per maund. KCA up rs. 200 to at the of.17,800 Rs per maund, PSF was same at Rs. 357 PKR/kg.
Local Yarn Market:
(The local yarn market remained stable, with steady prices and limited business activity. Cash flow constraints persisted, impacting both suppliers and buyers. The Faisalabad market also faced similar challenges. Overall, the market outlook remains cautious, with the potential for further stabilization dependent on improving economic conditions and addressing cash flow issues)
1- The local yarn market continued steady with stable prices of yarn and limited business activity. Cash flow limits persisted.
2- Suppliers carry no huge stocks and manage production and sales with ready deliveries.
3- PSF prices held steady this week and are projected to remain stable in the coming week.
4- The Faisalabad yarn market experienced slow activity, with limited trading due to FBR tax issues and ongoing cash flow constraints.
| Count | Price in Pak Rupees / 10 LBS | Price US$/Bale |
| 16/1 Carded Weaving | 3325 – 3400 | 480 – 495 |
| 20/1 Carded Weaving | 3400 – 3550 | 495 – 515 |
| 30/1 Carded Weaving | 3750 – 3900 | 545 – 565 |
| 20/1 Combed Weaving | 3900 – 4000 | 565 – 580 |
| 30/1 PC Carded Weaving 52:48 | 3100 – 3350 | 450 – 485 |
| 40/1 Combed Compact Weaving | 4400 – 4500 | 640 – 650 |
| 60/1 Combed Compact Weaving | 5900 – 6050 | 855 – 875 |
| 80/1 Combed Compact Weaving | 7950 – 8150 | 1150 – 1180 |
| 40/1 CVC Carded Weaving 60:40 | 3850 – 3950 | 560 – 575 |
Export Yarn Market:
(The export yarn market had limited activity, with cautious buyer bookings due to currency fluctuations in China and slight price drops by spinners. Demand from China is expected to keep market activity moderate, while European interest may prompt suppliers to reduce prices to secure orders)
1- This week, the export yarn market saw limited business activity, with fewer confirmed deals despite steady inquiry levels.
2- Buyers exercised caution with bookings due to currency fluctuations, leading spinners to slightly reduce prices by 1-2% amid lower order volumes.
3- Many mills have managed to sell their yarn stocks through the end of December, securing some stability in the coming months.
4- Market activity is anticipated to remain moderate, primarily influenced by demand trends from Chinese customers.
5- European buyers actively floated inquiries, but a price gap prevented major deals from materializing.
6- With ongoing interest from European markets, suppliers are expected to lower prices next week to secure orders and capitalize on rising demand.
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Local Fabric Market:
(The local fabric market exhibited range bound activity with slow sentiments. Local finishing units remained sidelines however the brands continued to support the market by placing some decent quantity of orders. Looking ahead, we anticipate firm market sentiments. However, prices are expected to remain range-bound, contingent on market activity)
1- During the current week, the local fabric market exhibited range-bound activity with slow sentiments for both narrow and wider-width fabrics.
2- Local finishers remained sideline, being unable to share bulk inquiries. However, local brands continued to support the market, placing some orders after tough negotiations. As a result, all types of air jet fabric looms have extended their current bookings.
3- Narrow-width fabrics suppliers are booked until mid-December 2024. Wider-width fabrics are secured until the end of December 2024/early January 2025, with onward deliveries being offered.
Export Fabric Market:
(Average business activity was seen from Far Eastern, Europe and USA buyers. The prices are stable since last couple of months. Suppliers are expecting steady business in days to come)
1- The week started with slow pace of buying by the Far Eastern customers and remain steady during the week.
2- The flow of inquiry was good however order placements were observed.
3- Asking prices are stable due to stable raw material prices since last couple of months.
4- Suppliers are booked till mid of Dec and offering onward deliveries.
5- Average business activity was seen from European customers
6- Suppliers were expecting bulk orders after the summer holidays but customers did not place volume-based orders.
7- It is observed that the European customers have the stocks and they do not want to keep more inventory at the moment.
8- Wider width suppliers are in comfortable sales position and booked till end of Dec. Currently offering Jan onward deliveries.
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Bed Linen and Towel:
(Orders are down, and the price gap is widening. Suppliers are exploring options like imported yarns and unconventional cost-cutting methods to meet very competitive price targets)
1- There has been a noticeable decrease in confirmed orders.
2- The main challenge is that customer price expectations are so low, they’re not even meeting the breakeven costs.
3- The USD is expected to further weaken, which could make the price gap even larger.
4- The suppliers are now favoring imported yarns for many of their products to make prices viable. Apart from this, various textile organizations are rallying up to get specialized energy incentives and tax reliefs to get the space in pricing
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- Pakistan’s garment industry is experiencing mix and match sentiments. Some markets are generating enough orders to fill factories, while others are not currently engaged. One of the reasons is the upcoming Christmas holidays.
2- Mostly export customers are not placing orders in bulk like for the full season as they also do not anticipate a healthy demand from retailers.
3- Orders are being placed in chunks considering urgent demands only.
4- Overall garment factories are covered from seventy to eighty percent of their capacities and striving to get more orders to fill their nonutilized capacity. Factories are offering End Jan 2025 onward deliveries.
5- Some brands from EU and US are working on their FW25 developments. On average factories have space to offer deliveries from end September onward depending upon the types of garments and embellishments required.
6- Whereas denim in Europe and UK it seems to be running at less volume, and the cost of living and uncertainty disincentives their spending.
Crude Oil:
1- Crude Oil prices opened at USD 67.38 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 69.49 with increase of 2.11 USD cents as of opening figure of week.
| Opening of Week | Closing Of Week | Change | |
| Price | 67.38 | 69.49 | 2.11 |
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 1.08 and British Pound closed on positive note with figure 1.29 against USD.
| Selling | Buying | |
| LC Sight | 275.93 | 275.88 |
| LC 120 Days | 265.84 | 265.79 |
| Open Market | 281.08 | 274.97 |
New York Cotton Future:
The New York Cotton Futures (NYCF) began the week on a lower note compared to the previous week’s closing figures.
Throughout the week, the market showed downward trends and closed on lower side by the end of week.
1- December 2024 Closed at 70.17, marking a drop of 19 points from the previous week.
2- March 2025 Ended at 72.33, down by 21 points compared to the previous week.
3- May 2025 Finished at 73.83, reflecting an decrease of 27 points from the previous week.
4- July 2025 Closed at 75.04, down of 15 points from the previous week.
Liver Pool Indices:
1- Liverpool Index A was opened at 83.25 on same level from the previous week of closing figure.
2- In this week Index “A” showed downward trend and closed on lower side by the end of week.
3- At last day of the week, LPI “A” closed at 82.05 with decrease of 120 points.
| Opening of the Week | Closing of the Week | Change | |
| Index A | 83.25 | 82.05 | -1.20 |
