Market Report – Pakistan 22 June 2020


In the local cotton market during last week, new season 2020-2021 crop trading has started in the cotton market. Many bales were traded in between Rs. 7900 to 8500 per maund. It is expected that stock of only three lac bales were left.

In the local cotton market during the last week, the prices of cotton and Phutti increased by Rs 300 to Rs 400 per maund because the textile sector took interest in the buying of cotton and Phutti. On the other hand, KCA dropped price of cotton Rs.300 in this week from 8200 to 8000.
The supply of Phutti is limited and extraordinary number of ginning factories has started their operations. The ginning factories located in the areas of Sanghar, Tandoo Adam, Kotri, and Moro have started their operations while four ginning factories of Punjab have partially started their operations. Many textile mills were interested in buying of new cotton. Till now, ginners had signed agreements for the sale of five thousand bales. The delivery time of some deals is after June 25.

Government has not yet announced any estimates regarding production of new cotton crop in the country. However, crop reporting department has issued an estimate according to which the target of cotton cultivation is 2.663 million hectare out of which sowing is completed on 2.316 million hectare which is 85 percent of the target. It is pertinent to mention here that area of cultivation is five percent less as compared to the last year’s area of cultivation of 2.439 million hectare.

Mixed trend was witnessed in international cotton market. There are many reasons due to which the Rate of NYCF saw a significant increase. It is expected that China may be attracted towards the United States or Pakistan due to the conflict between China and India.In the last week, an increase in exports was witnessed in New York cotton market as China emerges being a big buyer. On the other hand the rate of cotton remained stable in China while bearish trend was witnessed in Indian cotton market.

Prices of old season cotton is 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 8500 per maund (37.32 Kgs). Overall prices of old cotton were in the range of USC 56~62 Lbs. (7800~8,500/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 55.00 55.00 0.00
Highest 59.00 62.00 -3.00


Crude Oil prices opened at USD 37.12 with higher level as compared to last week closing figures.In this week, crude oil price showed upward trend, although dropped in mid of week, although closed on positive side at the end of week.
In last day of the week, Crude Oil price closed at USD 39.75 with increase of USD 2.63 cents as of opening figure of week.

  Lowest Highest Change
Price 37.12 39.75 -2.63


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 1.12 and British Pound also closed on negative note with figure 1.24 against USD.

  Selling Buying
LC Sight 166.23 166.18
LC 120 Days 164.66 164.61
Open Market 168.52 164.69


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 and closed on positive side by the end of week.

At last day of the week, JULY 2020 closed at 61.56 with rose of 255 points.
At last day of the week, OCT 2020 closed at 59.90 with surge up of 125 point.
At last day of the week, DEC 2020 closed at 59.81 with increase of 146 point


Local yarn market got some momentum in activity and prices moved slightly up after long time in domestic market in last week. Some devaluation in Pak rupee encourages mills to sell in export and in domestic market. Weavers floated good enquires to cover the yarn and get position.
PSF prices remained stable in domestic market during the week due to limited production of IFL plant. PTA, MEG prices were stable after stable prices of oil in international market and same followed by International polyester fiber.

Faisalabad trading market was active in staple fiber yarn and good activity was there in the week. Traders were now clear about sale tax after budget and they took their positions in buying as well, cotton and blended yarn activity was reported limited by end of this week.

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

Count Price US$/Bale
16/1 CD 365 – 380
20/1 CD 385 – 400
30/1 CD 445 – 460
20/1 CM 450 – 465
30/1 PC 52:48 365 – 385
40/1 CM 535 – 555
60/1 CM 770 – 800
80/1 CM 1035 – 1190


Market remained slow for another week in a row. Limited enquiries were floated against which order confirmation was almost nil.
Over all COVID-19 impact on economies are huge and it is disturbing business everywhere. However, business situation is getting better in some regions and we might see positive developments in days to come.

Customers are placing yarn orders slowly but business is being concluded at different prices. Overall market price is stable and now showing fluctuation. So, it seems month of June will show some improved activity. Chinese customers remained under normal trading activity and placed good quantity orders with selected suppliers. Good sign is that lc s are also opening with time to time. European customers are also getting better and positive signs prevailed in market. Customers have started buying and some orders were placed.

Count Korea Hong Kong Taiwan Japan
16/1 CD 390 – 400 390 – 400 390 – 400 390 – 400
20/1 CD 400 – 410 400 – 410 400 – 410 400 – 410
20/1 CM 470 – 480 470 – 480 470 – 480 470 – 480
30/1 CD
30/1 CM 495 – 505 495 – 505 495 – 505 495 – 505
32/1 CM 505 – 515 505 – 515 505 – 515 505 – 515
24/2 CD 460 – 470 460 – 470 460 – 470


In current week under review the local fabric market remained dull due to corona virus pandemic for both narrow width and wider width fabrics.
Negligible was business reported in the local fabric market against limited inquiries. Weavers and spinners are in liquidity crunch and facing difficulties to remain operational.

Fabric prices slightly went up on last working day as rupee depreciated against dollar by almost Rs 2. Weavers are booked in narrow width loom till 3rd week July~ end July’2020 and also covered their wider width looms till end July ~early-August’2020 but due to current scenario still they are feeling pressure and searching for local orders. Local fabric market expected to remain soft for both narrow and wider width looms for coming weeks.

Local fabric prices of regular items are as follows.

Construction Price US$/YD ExMill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 0.92 – 0.94
16X12/108X56 63″  3/1 1.04 – 1.06
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.76 – 0.78


Export fabric far eastern and Asian markets remained mixed as few of the customers from Korea, China, Japan and Bangladesh exchanged inquiries with limited booking during the week. Bangladesh customers were looking for bulk quantities but their prices were very low hence no considerable buying was witnessed. Limited inquiries were received from Sri Lanka. Asking prices were stable due to stable raw material prices. Currently good suppliers are booked till mid of July and offering onward deliveries whereas average suppliers are booked till early of July and offering mid July onward deliveries. 1/1 plain weave fabric deliveries are available in 45~50 days onward.

European and USA customers have sent limited inquiries during the week hence suppliers could not extend their sales coverage especially for wider width. Wider width suppliers are offering mid Aug onward deliveries and prices are stable at the moment.

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 0.94 – 0.96
16X12/108X56 63″  3/1 1.04 – 1.06
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.78 – 0.80


Bedding & Towel industry has remained fruitful with increasing order conversions. Inquiries have been coming in from Europe, Australia and North American market. The industry has been lifted up with bulk buying of raw materials and production outputs, which is on the way to recovering losses incurred during lockdowns imposed back in March, April and May.

The manufacturers still have a long way to go in order to meet their fiscal targets of 2020 but with many foreign retailers cancelling orders due to disturbed demand patterns and filing for bankrupties, a lot of uncertainty remains for July and August until the market adjusts to the overall demand forecast.

Deliveries are stretching from 80 to 90 days not because of the rising number of orders but due to the limited availability of yarns, and looms because of overall reduced demand of raw material exports, which has reduced production levels and will take time to adjust to the local producers demand by late July and August.


Pakistan has received the world buying orders in the middle of the ongoing global health crisis as we manufacture and export low-cost products in all categories of textiles including readymade garments, bed-sheets and hosiery instead exporting high-end branded products. The orders are a mix of new ones and the ones which were put on hold and got temporarily suspended after the world imposed lockdown to contain the virus. Spain, Italy and other countries around the world are softening the lockdown.

The value of textile and garment exports from Pakistan decreased by 2.79 per cent in dollar terms in first ten months of fiscal 2019-2020, compared to same months of 2018-2019. However country’s textile manufacturers – single largest export industry – have reported receipt of new buying orders from different countries after the world slowly softened lockdown imposed to contain the coronavirus pandemic.


Activity remained dull in local cotton, buyers are not interested to make deals due to financial crunch and as well as they have a sufficient cotton in their stocks. New crop size is seeming not satisfactory due to low seed germination. Domestic yarn market is expected that yarn market will be remained stable with limited buying as per need.

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

Export yarn market is getting better and we might see improved business activity in days to come.

Far eastern markets for export fabric remained mixed with limited buying however European and USA markets were slowed down. Prices for both narrow wider width fabric are stable due to stable raw material prices.

A significant development has taken place in the textile garment export sector of Pakistan. Industry have received new export orders for those textile products which are mainly used in hospitals like white gowns, white bed sheets and white t-shirts.

Bedding & Towels market remains fruitful by the means of production availability and but not as lucrative in terms of pricing. A lot of stock of cancelled orders is in availability to be lifted by brands if interested

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