Market Report – Pakistan 2 March 2020


In the local cotton market, bearish trend was observed, most of the textile and spinning were remained on sidelines. The buyers showed interest only in the buying of good quality cotton. Ginners were firm on prices and were not in panic to sale.

The news of outbreak of Corona Virus in Pakistan created panic due to which the business was affected. The mills were not showing interest due to which uncertainty was seen in the market. More negative effects of this uncertainty will be seen in the market in times to come. It is expected that import and export will be affected as a result of which exports of cotton yarn will also be affected. Due to all these reasons there are chances that economic conditions will be weaken.

In the local cotton market, the prices of cotton remained stable. The Spot Rate was remained stable at the level of 9000 in this week. Business was affected worldwide due to Corona Virus. The cotton market was also affected badly. New York Cotton has reached 61 cent after decreasing by 8 American cents. There was uncertainty in China while in India bearish trend continues.

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 9200 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 9300 per maund (37.32 Kgs). Overall deals were made between the range of USC 63~74 Lbs. (8000~9,300/ maund).

Opening Of the Week Closing Of the Week Change
Lowest 64.00 64.00 0.00
Highest 75.00 71.00 4.00


Crude Oil prices opened at USD 51.43 with lower level as compared to last week closing figures.

In this week, crude oil price showed downward trend and closed on negative side at the end of week.

In last day of the week, Crude Oil price closed at USD 44.76 with decrease of USD 6.67 cents as of opening figure of week.

Lowest Highest Change
Price 51.43 44.76 6.67


In last week values of Pak rupee showed slight improvement 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 1.11 and British Pound closed on negative note with figure 1.28 against USD.

Selling Buying
LC Sight 153.38 153.33
LC 120 Days 147.17 147.12
Open Market 156.25 152.66

New York Cotton futures opened on lower levels on Monday as compare to previous week’s closing figures.

NYCF showed downward trend in this week and closed on negative side by the end of week.

At last day of the week, MAY 2020 closed at 61.49 with drop of 607 points.
At last day of the week, JULY 2020 closed at 62.27 with downward of 605 points.
At last day of the week, OCT 2020 closed at 61.97 with decline of 575 points.


Local yarn market remained under sale pressure after last week good sales. Most of suppliers were interested to sell yarn but limited numbers were booked. Due to good order in weaving and finished fabric sector, demand was reasonable in market due to massive supply of yarn in domestic market after China Corona virus problem.

PSF prices remained stable during this week ended. PTA, MEG prices were decreased after adjustment of oil prices after dip in international market and same followed by polyester fiber. For next week it is expected that price will decrease Rs,3~4/kg in domestic market.

Faisalabad trading market was reported average business activity. Most of traders were busy in their viscose yarn buying as next season started. Fine counts demand was average and blended yarn also was in limited demand.

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

Count Price US$/Bale
16/1 CD 430 – 445
20/1 CD 445 – 475
30/1 CD 510 – 530
20/1 CM 520 – 530
30/1 PC 52:48 410 – 440
40/1 CM 650 – 665
60/1 CM 935 – 960
80/1 CM 1220 – 1310


Market remained under huge stress after the corona virus entered in Europe.
Stock markets were continuously on crash every day in Europe, USA, HK, Japan and China. This has put all the business activities on halt.
If we talk about sales position of suppliers, they are comfortable booked till mid-April but the only fear is if they are going to receive L/C against booked orders or not.

Mainly pressure is on coarse count suppliers who are based on Chinese market but unfortunately Chinese customers are still not back to work due to Corona Virus. Hence, fate of lc is not yet clear and in case, customer default or delay the lc, it is expected prices will show handsome decline as suppliers have no other option but to reduce the price and resell quantities.

All major suppliers in Pakistan are carrying cotton of at least 6 month which is incurring them huge cost. So, if market kept on declining, they will face heavy losses.

European customers remained under nominal business activity and kept on floating limited numbers of enquiries. However, order materialization remained minimal and few deals were closed where customers matched their target prices.

Cotton prices in domestic and international markets remained weak with bearish tone.

We might not see big movement in prices and it is expected that prices will remained firm and stable.

Korean customers remained silent and no such business activity was witnessed.

HK customers also remained silent due to holidays.

Count Korea HongKong Taiwan Japan
16/1 CD 435 – 445 435 – 445 435 – 445 435 – 445
20/1 CD 445 – 455 445 – 455 445 – 455 445 – 455
20/1 CM 500 – 510 500 – 510 500 – 510 500 – 510
30/1 CD
30/1 CM 555 – 565 555 – 565 555 – 565 555 – 565
32/1 CM 565 – 575 565 – 575 565 – 575 565 – 575
24/2 CD 535 – 545 535 – 545 535 – 545 535 – 545


The local fabric remained firm throughout the week for both narrow and wider width fabrics.

Flow of inquiries slightly increased for both narrow and wider width fabrics and weavers booked limited orders after tough negotiations at slightly increased inflows as compared to last week.

Weavers covered their narrow width loom till 3rd week April / End April’2020 and also covered their wider width looms till early ~mid May’2020 and onward deliveries are available with all major suppliers.

Local fabric prices of regular items are as follows.

Construction Price US$/YD ExMill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.08 – 1.10
16X12/108X56 63″  3/1 1.17 – 1.19
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.90 – 0.92


Export Fabric market remained mixed. Limited inquiries were received from Korea and China but no considerable business was witnessed. Good flow of inquiries was observed from Bangladesh, Sri Lanka, Thailand, Vietnam, Russia and Indonesia both in grey and finished fabric resultant decent booking by the customers.

Suppliers have good orders in hand thus their deliveries are very long. Most of the customers are facing difficulty in getting their required deliveries. The regular customers have added more items with their selected suppliers as they are shifting orders from China to Pakistan.

Asking prices remained stable dur to stable raw material prices. Suppliers are not interested to lower their prices due to good demand in hand.
Currently good suppliers are booked till end of April and offering end ~ mid May onward deliveries whereas average suppliers are booked till mid of April and offering end April onward deliveries.

Suppliers are expecting that they will have good demand in coming days as well and prices are expected to remain stable.European customers are exchanging decent quantities with their suppliers. Good number of inquiries were received from Belgium, Italy, Germany, Portugal, Turkey, Netherland and South Africa as well as other African origins both in narrow and wider width fabrics.

Wider width prices were stable and firm due to firmness in fine count prices.

Wider width suppliers are booked end of May and offering June onward deliveries.

USA market was mixed as limited inquiries were received during the week under review resultant limited booking both in narrow and wider width.
It is forecasted that European and USA customers will keep on buying good quantity volumes in days to come.

Following were the prices based on CNF Far Eastern basis.

Construction Price US$/YD CNF Far East
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.12 – 1.14
16X12/108X56 63″  3/1 1.24 – 1.26
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.92 – 0.94


Bedding & Towels market has seen gradual order placements against the pricings conducted in the last quarter of the previous year.
The deliveries are still running at 90 days for new orders and 45 to 50 for repeat depending on the order size.

The industry is growing towards installation of digital printing setups. Inquiries due to Corona Virus have increased diversifying from China to Pakistan, but due to weaving limitation, immediate grabbing of orders seems difficult.


The true potential of the textile sectors lies in value-added apparel exports. Pakistan’s garments exports to European Union (EU) had increased from $6.87 billion in 2013 to $7.98 billion in 2018. Under GSP+ Pakistan had duty free access in the EU market for garments and apparel.

In order to boost garments exports to China, the government had taken various steps. There was early implementation of the Phase-II of China-Pakistan Free Trade Agreement (CPFTA) which had been signed during visit of prime minister to China April, 2019 and implemented from January 1, 2020. In addition Pakistan will receive concession on 232 tariff lines under Preferential Trade Agreement (PTA) with Indonesia and Pakistan had also gained access to the unilateral market on 20 top priority tariff lines at zero duty of these 20 tariff lines.

Due to on going Corona Virus issues, deliveries of some China based accessories for garmenting are getting affected for which factories in Pakistan have already started working for alternate sources. At the moment bulk order deliveries for garment shipments are being offered from June 2020 onward.


In the local cotton market, bearish trend was observed. Customers are showing interest for fine quality cotton only. prices remained stable.
Local yarn market was under pressure during this week and it is expected to remain stable and soft in coming days.

Flow of inquiries increased in local fabric segment and expected to remain firm and steady for both narrow and wider width looms for coming weeks.
Export yarn market remained under pressure as over all cotton and yarn kept on dropping. Hence, we might see slow business activity in week to come.

Export fabric Far Eastern market remained mixed trading activity and expecting that they will have good demand in coming days as well and prices are expected to remain stable. European sector was very much active during the week with good flow of inquiries and order placement. It is also forecasted that European and USA customers will keep on buying good quantity volumes in days to come.

With the efforts being put on to boost garment export both from the government and factory side, Pakistan stands in a sound position to offer according to increased demand from global buyers.

The bedding & towels market is experiencing a gradual increase in value and volume and the same is to remain for the coming weeks.

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