Market Report – Pakistan 12 May 2020


In the local cotton market during last week, business activities remain suspended due to lockdown because of corona virus. There was almost no business in the local cotton market for the last two months.

The government has given the permission to textile sector to resume their operations on the condition of following the Standing Operating Procedures of the government. After that it is hoped that cotton business will resume partially. Ginners had the stock of 5 lac bales and they were looking for the buyers. They also had to pay the interest while the cotton is losing weight due to the sunshine.

As there was no business, The Spot Rate Committee of KCA has decreased the rate by Rs 200 per maund and closed it at Rs 8600 per maund.
The sowing has completed in the lower areas of Sindh and now the sowing has started in the upper areas of Sindh as well as in Punjab. The farmers were complaining regarding the low germination value of seeds. The farmers were trying that government should resolve the longstanding issues of farmers including fixing of support price of cotton. Since 2010 cotton cultivation has been decreased by 20 percent while the area of corn cultivation has increased.

After fluctuation the Rate of New York Cotton increased and reached at 56.27 American cents. China has again started taking interest in American cotton. According to USDA weekly report China has bought thousands of bales of cotton. The rate of cotton remained stable in China. In India the rate of cotton decreased after fluctuation. In first two days the rate of Candy (356 Kg) decreased by Rs 800. On Thursday the rate increased by Rs 400 as a result of which rate decreased by Rs 400 per Candy.

Prices of cotton are available from Sindh in range from Rs 7800 to Rs 8500 per maund (37.32 Kgs). In Punjab prices in range from Rs 8000 to Rs 8600 per maund (37.32 Kgs). Overall prices were in the range of USC 60~66 Lbs. (7800~8,600/ maund).

Opening Of the Week Closing Of the Week Change
Lowest 62.00 61.00 1.00
Highest 67.00 65.00 2.00


Crude Oil prices opened at USD 20.39 with higher level as compared to last week closing figures.
In this week, crude oil price showed mix trend and closed on positive side at the end of week.

In last day of the week, Crude Oil price closed at USD 24.28 with increase of USD 3.89 cents as of opening figure of week.

Lowest Highest Change
Price 20.39 24.28 -3.89


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 negative note with figure of 1.08 and British Pound also closed on negative note with figure 1.23 against USD.


New York Cotton futures opened on lower levels on Monday as compare to previous week’s closing figures.
NYCF dropped again in next session and later showed upward trend till closing, hence closed on positive side by the end of week.

At last day of the week, JULY 2020 closed at 56.27 with rose of 194 points.
At last day of the week, OCT 2020 closed at 57.38 with surge up of 149 point.
At last day of the week, DEC 2020 closed at 57.62 with increase of 138 point.


Local yarn market remained under sale pressure and prices were dropped as compare to last week ended. Now Govt. allowed to start production after lockdown from next week and mills will start again. Demand from weavers was slow but some activity was seen in market.
PSF prices remained stable in domestic market during this week. PTA, MEG prices were decreased after decline of oil prices in international market and same followed by International polyester fiber.

Faisalabad trading market was closed and expected to start from next week.

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.

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 start their production operations. 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 rub factories due to which yarns shipments are also on hold.

Count Korea HongKong Taiwan Japan
16/1 CD 375 – 380 375 – 380 375 – 380 375 – 380
20/1 CD 385 – 390 385 – 390 385 – 390 385 – 390
20/1 CM 455 – 460 455 – 460 455 – 460 455 – 460
30/1 CD
30/1 CM 480 – 485 480 – 485 480 – 485 480 – 485
32/1 CM 490 – 495 490 – 495 490 – 495 490 – 495
24/2 CD 445 – 455 445 – 455 445 – 455 445 – 455


The local fabric market remained dull throughout the week thus negligible business reported in the market for both narrow and wider width fabrics.
Slower export market badly affected the local fabric market as well because foreign customers neither placing fresh orders with local buyers nor lifting their produced stocks.

Weavers are still in liquidity crunch and also chasing local buyers for fresh orders.

Fabric prices remained soft and eased down by almost 0.5% ~ 1% in the absence of confirm orders.

Weavers are booked in narrow width loom till End May’2020 /early June’2020 and also covered their wider width looms till mid June’2020 but in the absence of confirm orders weaver 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 0.96 – 0.98
16X12/108X56 63″  3/1 1.07 – 1.09
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.80 – 0.82


Export fabric market situation is not improving at desired level. Limited inquiries were received from China, Korea and Japan resultant limited buying during the week under review. Other Far Eastern and Asian markets remained almost aside of buying with no interest.

Asking prices were little bit soft due to less demand in the market and suppliers are interested to work out any reasonable target prices to extend their sales coverage.

Some of the units are still running their production partially due to SOP of Covid-19 as they have to utilize the workers who are stationed at sight and no workers are allowed to enter who are coming outside of the unit.

Currently good suppliers are booked till end of June and offering early Jul onward deliveries whereas average suppliers are offering mid June onward deliveries.

Some suppliers are producing export based orders against LCs in hand and holding the production for those orders for which the LCs are pending. This is to avoid keeping stock for ready goods because some customers are still holding the ready goods with the suppliers.

Average kind of business activity was observed from European markets during the week resultant limited buying both in narrow and wider width fabrics. Germany, Poland and African markets were little bit active whereas other European markets are almost silent at the moment.
Wider width customers are still holding their ready goods and production with the suppliers until the Covid-19 situation gets better at their side.
Prices for wider width also remained soft due to less demand.

Almost all of the wider width suppliers are booked till mid of July and offering end July onward deliveries.

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 & Towels market has booked tremendous losses in the weeks that has passed by. In the current scenario the factories in Pakistan are experiencing mixed order processing demands. Orders are still being re-negotiated with lesser quantities and latest commodity prices.

Inquiries have started flowing in but the pace is really slow and negotiations are been done on old inquiries rather than receiving any new demands. Whether orders will get booked or not, this is still a question that remains for the coming days.


Garment industry in Pakistan has resumed operations gradually under the current coronavirus scenario. The global apparel sector is likely to be one of the most heavily impacted by the Covid-19 pandemic and brand value to be affected by 20% approximately. During the recent scenario fashion industry has got the mojor hit as buyer’s choice is now only on the necessity items.

This wave is definitely hitting Pakistan’s garment industry overall. Though factories here have resumed operations under strict compliance of SOPs failing to abide by the rules will result in sealing of the unit immediately. Only work in progress goods are being completed as new inquiries for garments were not received in recent past. Few garment units have received orders of face masks from US and EU market.


Local cotton activity suspended due to lockdown situation. No considerable business was witnessed. New cotton sowing is in progress.

Domestic yarn market is expected to remain under sale pressure for next few weeks.

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

Export yarn has nominal but improved business activity. Overall demand is shrinkage world wide. Suppliers are still holding stocks for their customers. Softened the lock down in many countries may help to improve business activity.

Limited business activity was observed both from Far eastern and European markets for fabrics. USA market was quite. The prices remained soft and suppliers are interested to negotiate any reasonable target prices to extend their sales coverage.

Pakistan’s apparel industry is facing a challenging time both in terms of meeting the financial crunch and dealing with workforce redundancy.

Bedding and towels market will remain bleak for the coming days, orders in hand are being pushed out until new negotiations get finalized on reduced commodity prices.

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