Market Report – 4 May Pakistan 2020


Business activities remain suspended during last week due to lockdown because of corona virus. There was almost no business in the local cotton market for the last two months, although government has allowed some industries to start their operations partially including textile industry. After that it is expected that cotton business will resume partially in the coming days.

Forward trading in Phutti and cotton seed (Banola) for the year 2020-21 has been started. The agreements were signed at the rate of Rs 3300 to Rs 3700 per 40 kg and on the condition of delivery between May 25 and June 5.

As there was no business, During the last four weeks the spot rate is stabled at Rs 8800 per maund.

Import of cotton is going on, while ginners had the stock of 5 lac bales and were looking for the buyers. The ginners were trying to waive off their loans while their cotton is drying day by day as there was no buyer in the market for the last two months because of the lock down due to corona virus.
Sowing of cotton in lower Sindh is in final stages. Farmers are complaining that seeds have low germination level. Farmer and ginners said that they have started sowing after taking seeds very cautiously but this experience is not good, which may hurt again our crop size. The sowing season has started in many areas of Punjab.

International cotton market fluctuation in the prices of cotton remained continued. In the New York Cotton market bullish trend was witnessed over all despite of the fact according to the USDA report; exports were decreased as compared to last year but due to increase in power prices the Rate of NYCF reached between 57.50 American cent to 58 American cent but after words the rate closed at 55.84 American cent. The rate of cotton remained stable in China while the rate of cotton decreased in India by Rs 200 to Rs 300 per candy.

Prices of seed cotton (Kapas/Phutti) in Sindh were in range from Rs 3200 to Rs 4300 per 40 Kgs and cotton is available from Sindh in range from Rs 8000 to Rs 8700 per maund (37.32 Kgs). In Punjab prices of seed cotton was in range from Rs 3300 to Rs 4400 per 40 Kgs and cotton is available from Punjab in range from Rs 8000 to Rs 8800 per maund (37.32 Kgs). Overall prices were in the range of USC 61~67 Lbs. (8000~8,800/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 59.00 59.00 0.00
Highest 64.00 64.00 0.00


Crude Oil prices opened at USD 12.78 with lower level as compared to last week closing figures.
In this week, crude oil price recovered and closed on positive side at the end of week.
In last day of the week, Crude Oil price closed at USD 19.78 with increase of USD 7.00 cents as of opening figure of week.

  Lowest Highest Change
Price 12.78 19.78 -7.00


In last week values of Pak rupee depreciated against US Dollar’s, other major currencies showed mix trend in both Interbank and open markets.

At the end of week, Euro closed on a positive note with figure of 1.09 and British Pound also closed on negative note with figure 1.24 against USD.


New York Cotton futures opened on lower levels on Monday as compare to previous week’s closing figures.
NYCF showed upward trend in this week, while dropped only on closing, hence closed on positive side by the end of week.

At last day of the week, MAY 2020 closed at 56.56 with increase of 263 point.
At last day of the week, JULY 2020 closed at 55.84 with rose of 83 points.
At last day of the week, OCT 2020 closed at 57.24 with surge up of 53point.
At last day of the week, DEC 2020 closed at 57.52 with increase of 49 point.


Local yarn market remained under sale pressure and prices were dropped. Most of mills not resume their production and were offering to sell their stocks only. Demand from weavers was slow but some activity was seen in market.

PSF prices dropped by Rs.7/kg by this week start in domestic market. PTA, MEG prices were decreased after big decline of oil prices in international market and same followed by International polyester fiber.

Faisalabad trading market was closed.

Following are current asking prices of yarn in local market based on ex mills:

Count Price US$/Bale
16/1 CD 395 – 405
20/1 CD 405 – 420
30/1 CD 465 – 480
20/1 CM 470 – 480
30/1 PC 52:48 380 – 390
40/1 CM 585 – 600
60/1 CM 860 – 885
80/1 CM 1135 – 1225


Market remained dull and slow with minimal business activity from all region due to Corona Virus. Limited enquiries were floated against which order materialization was almost nil. Effect on economies due to Pandemic is rising on daily basis and we might see another recession for the months to come.

Demand is shrinking worldwide as all brands are closed. however, softness in Lockdown is giving a sign of relief in all regions as suppliers are hoping for some betterment in days to come. Suppliers who started their factories almost a month back are under pressure due to piling up of stocks. At the same time, some positive news has started to arises as Pakistan domestic market for the weaving, dyeing, finishing has been started and demand of yarn in domestic market is picking up. Same way, many other countries have softened the lock down and industries are allowed to produce goods. So, it is expected that things will get slightly better in days to come. Under the current scenario, business transactions are on slight movement but still very limited.

China is better in terms of Virus but due to disturbance of business all over the world, Chinese are also facing heavy cancellations of orders. This might put them in another turmoil as they are unable to run factories due to which yarns shipments are also on hold.

Count Korea HongKong Taiwan Japan
16/1 CD 405 – 415 405 – 415 405 – 415 405 – 415
20/1 CD 415 – 425 415 – 425 415 – 425 415 – 425
20/1 CM 470 – 480 470 – 480 470 – 480 470 – 480
30/1 CD
30/1 CM 525 – 535 525 – 535 525 – 535 525 – 535
32/1 CM 535 – 545 535 – 545 535 – 545 535 – 545
24/2 CD 510 – 520 510 – 520 510 – 520


In current week under review the local fabric market remained slow throughout the week for both and narrow width fabric markets. Finishers are searching ready stocks or very sharp deliveries especially in narrow width to keep their units running. Weavers and spinners are still facing liquidity crunch and therefore facing difficulties in restart their operations. Fabric prices eased down by almost 1% in the absence of confirm orders. Weavers are booked in narrow width loom till End May’2020 and also covered their wider width looms till early June’2020 but in the absence of confirm orders suppliers are feeling pressure and searching for local orders to run their looms against any confirm order.

Local fabric prices of regular items are as follows.

Construction Price US$/YD ExMill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 0.97 – 0.99
16X12/108X56 63″  3/1 1.08 – 1.10
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.81-0.83


Limited business activity was seen from various parts of the Far Eastern. Some customers from Korea, China and Japan have bought reasonable quantities. Other markets like Thailand, Bangladesh, Vietnam remained dull.

Asking prices were soft by 2% due to less market activity.

Limited booking was observed mainly from Germany however other European markets are not responding well due to Pandemic situation.
Some of the inquiries received from USA buyers however they are looking for quick shipments from the market hence limited business activity was witnessed.

Following were the closing rates based on CNF Far Eastern ports :-

Construction Price US$/YD CNF Far East
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.00 – 1.02
16X12/108X56 63″  3/1 1.10 – 1.12
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.84 – 0.86


Bedding and towels market is busy re-adjusting to revised order quantities, cancellations and stock piles of greige and finished fabrics, in some cases finished articles from cancelled orders. The distress sales are building momentum due to the fact that there are many buyers around the world interested in lifting these stocks at distress prices.

Factories are partially operating following strict SOPs of the government, taking all precautionary measures.

No significant price reductions have been experienced so far, due to the fact that the fine count yarns are stable with no further reductions.


Pakistan’s garment industry has resumed production gradually following the government’s announcement to also exempt the textile industry from lockdown in view of providing financial relief to the workers. Trade and commerce activities were adversely affected by Covid-19, hitting the working class including daily wagers the most as massive layoffs were seen during the recent past as the factories have been closed.At this critical juncture, the apparel sector direly needed an economy stimulus plan along with relief package by the government to ensure the continuity of the production process, results of which are yet to be seen. COVID-19-hit textile industry in Pakistan is gradually resuming it’s export business now focusing on orders in hand which were held for the time being.

In recent days, both government and enterprises have implemented relative measures to awake stagnant textile industry. Up to now, domestic textile mills are gradually resuming productivity in accordance with the policies of government.


Business activities remain suspended during last week due to lockdown because of corona virus. Sowing of cotton in lower Sindh is in final stages while sowing just started in many areas of Punjab.

Domestic yarn market will be remained under sale pressure for next few weeks.

Local fabric market expected to remain soft for both narrow and wider width looms for coming weeks.

Limited business activity was seen in Export fabric from Korean, Japan and China. European side, only Germany is active. USA buyers are looking for quick shipments.

In the midst of post lockdown situation, Pakistan’s bedding and towels industry has a mixed outcome, and the outcome is solely based on who has what number of stable orders running. In the coming weeks we will be able to judge better if the industry is back on its feet.

Garment factories in Pakistan have resumed working gradually focusing on held orders in hand though 100% units are not operational yet. Situation will be more clear in the coming weeks.

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