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15-08-2006
Local Fabric Market Situation Good sales have been observed in narrow fabrics as both basic and special items by finishing mills and garments manufacturers during last couple of weeks. Prices for basic items were maintained stable and special items prices were increased by 1~2 cent per meter. Mills are comfortably booked in narrow width fabrics and offering mid September onward shipments. Wider width fabrics remained slow and mills are under pressure. Some suppliers have closed their production capacity partially and some are running double width fabrics on wider looms. Wider width fabric is being offered for end August onwards deliveries as mostly looms are idle with some of the suppliers and they are looking for business on these looms.
Following were asking prices for regular items on ex-mill basis during the last week.
Item | US$ Per Yard | 20*16 128*60 63” 3/1 | 0.88~0.90 | 16*12 108*56 63” 3/1 | 0.93~0.95 | 20*20 108*58 63” 3/1 | 0.75~0.77 |
Export Fabric Situation
Overall export fabric business remained slow as some enquiries were received for basic commodity items and limited sales have been observed. Since, wider width looms were under sales pressure and most the units have partially shut down their wider width looms, they have started producing double width of basic items on these wider width looms. Due to increase of demand in counts used in bottom weight fabrics I.e. 12/1cd to 30/1 cd, prices for these counts are increased. Due to increase in yarn prices used for basic items, fabric prices are moved up by 1~2 cents per meter where customers are still insisting to keep the same price level as it was during last couple of weeks but weavers are unable to reduce their fabric prices because of firm yarn prices.
There is no considerable business observed in USA market since couple of weeks as customers are on holiday mood. Some enquiries were received for wider width fabrics in range of T-180 to T-250 but firm bids were on a very low side. It is expected that normal activity will resume after summer vacation season in September ‘06.
European customers are also on holiday mood and business remained overall slow with limited sales of wider width fabrics in T-300 to T-400. No enquiries have been received for narrow width fabrics during this week. However good booking has been noticed from Turkish customers for narrow width fabrics.
Following were the asking prices for regular items CNF Far Eastern ports:
Item | US$ Per Yard | 20*16 128*60 63” 3/1 | 0.92~0.94 | 16*12 108*56 63” 3/1 | 0.99~1.01 | 20*20 108*58 63” 3/1 | 0.79~0.81 |
Conclusion and Recommendations
urrent market situation can be summarized as follows:
- Local cotton prices remained firm during last couple of weeks.
- Local yarn prices ruled firm due to good sales, local fabric business was active for narrow width and slow for wider width fabrics.
- Average sales have been observed in export fabric business. However prices remained stable and firm.
In current situation, it is expected that due to low production compared with consumption worldwide cotton prices are expected to remain stable and firm in current price range. Oil prices are also firm and that will keep PSF prices stable. Yarn and fabrics prices are under tremendous pressure due to high cost and no signs of improvement in prices of end products are expected. Hence, situation is quite unclear and confusion.
It is advisable to book narrow width fabrics for September deliveries without any delay. Wider width fabrics shall be placed after carefully watching market trends in next couple of weeks.
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