Market Report – Pakistan 1 July 2020


In the local cotton market during last week, new season 2020-2021 crop trading has started in the cotton market. Active trading trend was witnessed due to the gap of demand and supply of new Phutti crop and due to the functioning of ginning factories.

KCA increased Rs. 100 in this week from 8000 to 8100. Some textile mills showed their interest in buying of cotton, Phutti and Banola due to which their prices increase.

In Sindh the rate of cotton opened at Rs 7600 – 7800 and increased by Rs 600 per maund and the cotton was sold between Rs 8350-8400. In Punjab the rate of cotton opened at Rs 8500 and after increasing by Rs 500 it reached at all time high of Rs 9000 per maund.
In the same way the rate of Phutti increased by Rs 300-400 per 40 Kg. In Sindh the rate of Phutti is in between Rs 4000 to Rs 4350 while in Punjab the rate of Phutti is in between Rs 4400 to 4450 per 40 kg. After the increase in the rate of dollar and after the lowering of interest rate to 7% by State Bank of Pakistan, it is hoped that textile sector will become active and exports of textile sector will be increased. The sowing of cotton in Sindh, Punjab and Balochistan is on final stages but production estimates were not announced however, area of cultivation was announced.

Mixed trend was witnessed in international cotton market. China is fulfilling its need of cotton from America after rising tensions between China and India. Before that when the tension was rising between China and America it was hoped that China will import cotton from India. Now the tension is increasing between both the countries China and india and both the countries are hinting that they will boycott import and export from each other.
It seems that China will show its interest in buying cotton and cotton yarn from America and Pakistan. Currently, China is importing cotton from America. According to the weekly USDA report China has the most import deals. Due to this it is expected that Rate of New York Cotton will increase.
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 9000 per maund (37.32 Kgs). Overall prices of new cotton were in the range of USC 57~62 Lbs. (7800~8,500/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 55.00 54.00 1.00
Highest 62.00 65.00 -3.00


Crude Oil prices opened at USD 40.46 with higher 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 38.49 with decrease of USD 1.97 cents as of opening figure of week.

  Lowest Highest Change
Price 40.46 38.49 1.97


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 1.13 and British Pound closed on negative note with figure 1.23 against USD.

  Selling Buying
LC Sight 167.29 167.24
LC 120 Days 165.87 165.82
Open Market 169.58 165.73


New York Cotton futures opened on higher 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, JULY 2020 closed at 60.55 with drop of 197 points.
At last day of the week, OCT 2020 closed at 60.26 with downward of 52 point.
At last day of the week, DEC 2020 closed at 59.50 with decrease of 35 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 encourage mills to sell in export and in domestic market weavers floated good enquirers to cover and get position. PSF prices remained stable domestic market during this 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. For next week expected to increase polyester prices by Rs.2~3/kg in domestic market.

Faisalabad trading market was active in staple fiber yarn and good activity was there in last week. Trader was 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 370 – 385
20/1 CD 385 – 405
30/1 CD 445 – 465
20/1 CM 450 – 465
30/1 PC 52:48 365 – 385
40/1 CM 535 – 560
60/1 CM 770 – 800
80/1 CM 1035 – 1190


Market remained dull for another week in a row. Slow inquiries were floated against which order confirmation was almost nil.
Over all COVID-19 impact on economies is still disturbing business and fashion products are out of demand.
However, we might see some improvements in days to come as demand from some regions started for industrial and institutional products.
Customers are placing yarn orders slowly but business is being concluded at different prices. Overall market price is stable and not showing any fluctuation.

So, it seems month of July may show 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.
Following were the yarn rates for regular counts.

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


The local fabric market still going through difficult time and week closed with soft tone for both narrow width and wider width fabrics.
Flow of inquiries remained limited and still business activity couldn’t pick-up in local fabric market. Weaving units are still under pressure and following their agents and buyers for confirm bids and ready to negotiate their offers to some reasonable level. Buyers are not lifting their old productions stock and weaving units are in under great pressure due to heavy stocks.

Overall negligible business reported in the market after tough negotiation at last week price level. Currently weavers are booked in narrow width loom till end July’2020 and wider width looms till early-August~ mid-august’2020 and offering onward deliveries

Local fabric prices of regular items are as follows.

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 0.89 – 0.91
16X12/108X56 63″  3/1 0.99 – 1.01
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.74 – 0.76


Some improved business activity was observed from Far Eastern and Asian markets during the week. Good number of inquiries was received from Korea, China, Bangladesh and Japan resultant decent booking mainly from Korea, China and Japan with selected suppliers.
Asking prices were stable with firm tone due to increase of raw material prices

Good suppliers are booked till end of July and offering onward deliveries whereas average suppliers are still offering end July onward deliveries
It is expected that business activity will gradually further improve in coming days however prices may remain firm.

Limited number of inquiries was received from European and USA markets during the week under review. Wider width and narrow width suppliers have booked small quantity of orders from Germany, Portugal, Italy and France.

Some of the European customers are negotiating payment terms which shipment already done due to their financial Burdens.
USA buyers have sent inquiries however no considerable booking was witnessed.
Prices for wider width remains stable.

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 0.92 – 0.94
16X12/108X56 63″  3/1 1.02 – 1.04
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.76 – 0.78


Bedding market has remained fruitful considering the number of orders in hand, but suppliers are not happy with foreign market revising the payment plans and delaying the payments. This has affected the cash flow of the manufacturers and has slowed their edge towards booking yarns and greige fabric in advance for running programs. Ultimately this will affect the foreign customers with slowed down deliveries and costly bu yups. The towels market is experiencing more or less the same situation but order bookings are all time high.

The main bedding markets which are Karachi and Faisalabad are booked till September and October. The delivery time are stretching to 85 to 90 days. The smart lockdown implemented in the city due to rising COVID-19 cases in Pakistan, especially in these cities, are also to contribute in delays with packaging and accessory procurement.


Garment Industry of Pakistan is resuming gradually. The easing of lock down in the North American and European countries—top export destinations for Pakistani textile goods will help revive the sinking exports. A significant decline was seen in trade shipments from mid March — the date since corona virus cases spiked in major export destinations especially in Europe and North America. However, exports on land routes were allowed in May to Iran and Afghanistan.

Ready-made garments exports dipped 46.28pc in value and drifted much lower in quantity by 68.16pc during May while those of knitwear dipped 33.93pc in value and 38.87pc in quantity, However, exports are expected to revive gradually as exporters have resumed production to honor international orders. Recently the government lifted the ban on exports of seven products classified as personal protective equipment (PPE) in a bid to allow manufacturers to honor international orders.


Activity improved last week, buyers showed interested and tried to cover stocks due to which prices also increased. China may start buying from Pakistan and price expected to rose further.

About future market it is expected that domestic yarn market will be remained stable and firm according to buyer as per need.
Local fabric may soft trend for both narrow and wider width looms for coming weeks.

Market remained slow but some positive developments may lead to improved business activity in weeks to come for export yarn markets.
Far Eastern export markets are expected to remain active with good business activity in coming days. European and USA buyers may remain slow due to coming summer holidays in Europe sector. Prices will remain stable with firm tone due to firmness in raw material prices.

With the easing of lock down from most countries of EU and North America, Pakistan’s garment industry is resuming operations and it is expected that things will get better in coming time.

Comings weeks will be fruitful for the bedding and towels market in terms of order bookings, but the timely output solely depends on the financial stability and the opening of areas closed due to smart lock downs in the main exporting cities across Pakistan

Scroll to top