Cotton spot prices by Karachi Cotton Association (KCA) have increased by Rs. 1,000 per maund in a week as the market attains stability with the dollar’s continuous fall ending coupled with lower arrivals and rising demand for quality Cotton.
Karachi Cotton Association (KCA) maintained the spot rate of Rs. 17,000 per maund today. Average Phutti prices in Punjab have also maintained price stability after posting Rs. 1,500-Rs 2,000 per maund from last week and prices in Bahawalpur, Bahawalnagar, Jhang and Multan were reported between Rs. 7,300 to Rs. 8,300 per maund.
Prices in Faisalabad, Toba Tek Singh and Kasur were reported between Rs. 7,500 to Rs. 8,500 per maund. However, Cotton deals were also reported at as high as Rs. 8,700 per maund in some regions for Phutti and between Rs. 18,000 to Rs. 18,500 per maund for Cotton.
“Millers are grappling to secure good stocks due to lower quality and slow arrivals, which can result in Cotton prices to potentially improve in the coming days and weeks, irrespective of the movement of the dollar. One reason for lower imports is the restrictions on opening LCs, as banks attempt to manage their reserves,” commented Rashid Khan, Commodity Trader and Head of Sales at Fund Marketing International while talking to ProPakistani
He added that the declining foreign reserves held by the State Bank of Pakistan is an alarming factor. It’s unlikely that import restrictions will be eased unless exports rise, but he expects the restrictions to reduce for downstream textile manufacturers of home textiles, denim, and others by January and February.
This is in line with the high exports for these units, coinciding with the Christmas season and with expectations that their export proceeds will be realized by that time.
Pakistan’s Textile Exports during Q1FY24 declined by 10 percent to $4.12 billion compared to $4.58 billion registered in 1QFY23. Monthly textile exports also registered a 12 percent year-on-year decline clocking at $1.36 billion in September 2023 compared to $1.53 billion during September 2022 and a 6.4 percent decline on a month-on-month basis against $1.45 billion registered in August 2023.
