Market Report – Pakistan 14 Sep 2020


Last week in the local cotton market, Moderate business activity was observed, less interest by mills and buyers were seen due to the low quality of cotton especially in Sindh. Significant dropped in prices were seen in local cotton market. KCA also decreased rs.250 and touched the level of rs. 8550/maund. Cotton prices dropped around 400~500 rupees per maund due to the low-quality cotton.

Mixed trend was witnessed in international cotton market and mixed trend was witnessed in the Rate of New York cotton. Tensions continue between China and the United States. While due to fluctuation in the rate of dollar there is a fluctuation in the Rate of New York Cotton. There is a decrease in the export according to the weekly USDA report however China remained biggest buyer while the rate of cotton remained stable in China while cotton prices also remained relatively stable in Brazil and Argentina.

The rate of cotton in Sindh is in between Rs 7800 to Rs 8200 per maund. The rate of Phutti in Sindh is in between Rs 3200 to Rs 3800 per 40 kg. The rate of cotton in Punjab is in between Rs 8500 to Rs 8650 per maund. the rate of Phutti in Punjab is in between Rs 3300 to 4000 per 40 kgs. Overall prices of new cotton were in the range of USC 57~63 Lbs. (7800~8650/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 62.00 58.00 4.00
Highest 66.00 63.00 3.00


Crude Oil prices opened at USD 39.77 with same level as compared to last week closing figures.
In this week, crude oil prices showed mixed trend and closed on negative side at the end of week.
In last day of the week, Crude Oil price closed at USD 37.33 with decrease of USD 2.44 cents as of opening figure of week.

  Lowest Highest Change
Price 39.77 37.33 2.44


In last week values of Pak rupee showed slight fluctuations on both way 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 1.18 and British Pound closed on negative note with figure 1.28 against USD.

  Selling Buying
LC Sight 166.38 166.33
LC 120 Days 165.79 165.74
Open Market 168.47 164.64


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

At last day of the week, OCT 2020 closed at 64.06 with decrease of 67 point.
At last day of the week, DEC 2020 closed at 64.81 with drop of 44 point.
At last day of the week, MAR 2021 closed at 65.78 with downward of 43 points.


Local yarn market remained silent during the week and very limited sale was made. Raw material prices were going to drop in local and international markets which kept away buyers from new buying. Only urgent need yarn was booked against their fabric sold orders. On the other hand, suppliers were resisting on asking prices due to good sale position in hand.

PSF prices was remained stable during last week ended. PTA, MEG prices were stable after stable prices of oil in international market and same followed by International polyester fiber. For next week, prices are expected to remains stable. Faisalabad trading market was stable and limited activity reported for last week ended. Demand again went slow in staple fiber and fine counts yarn asking was increased and good trade was made during the week. whereas 30/1cd and 31/1pc yarn demand remained slow in sale due to higher in asking prices.

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

Count Price US$/Bale
16/1 CD 400 – 420
20/1 CD 425 – 440
30/1 CD 485 – 500
20/1 CM 500 – 510
30/1 PC 52:48 390 – 405
40/1 CM 600 – 625
60/1 CM 840 – 880
80/1 CM 1105 – 1205


Market showed firmness in prices for the whole week. Cotton prices showed slight decline after increase in arrivals which was declined after heavy rains and flood. However, fine quality crop is still on higher side as ginners are not showing any flexibility. Hence, yarn prices remained firm with minor fluctuation and correction.

Suppliers are firm as they have good sales position and not under any sales pressure. Customers form different regions remained active and kept on sharing their requirements. Some orders were also placed with slight negotiations. It is expected that prices will show firmness for the whole season as there has been shortage in cotton in PAKISTAN as well as worldwide. So, market will remain under same price tone with minor fluctuations.
Chinese customers kept on placing orders as per their requirements.

European customers remained active and kept on floating enquiries. So, it is expected that they will also start placing orders in days to come.

Count Korea Hong Kong Taiwan Japan
16/1 CD 410 – 420 410 – 420 410 – 420 410 – 420
20/1 CD 420 – 430 420 – 430 420 – 430 420 – 430
20/1 CM 490 – 500 490 – 500 490 – 500 490 – 500
30/1 CD
30/1 CM 515 – 525 515 – 525 515 – 525 515 – 525
32/1 CM 525 – 535 525 – 535 525 – 535 525 – 535
24/2 CD 480 – 490 480 – 490 480 – 490


Local fabric market remained firm throughout the week for both narrow and wider width fabric. Inquiries flow improved and weavers also confirmed orders at last week price level after tough negotiations for both narrow and wider width fabrics.

Buyers are requesting suppliers to start production of their held orders which shows that finishers getting their color assortments from their end customers.In narrow width weavers are booked till 3rd week Octpber’20 and also covered their wider width looms till early November’20 and offering onward deliveries

Going forward we expect firm market sentiments for coming weeks with limited trading activity for both narrow and wider width looms.

Local fabric prices of regular items are as follows:

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.01 – 1.03
16X12/108X56 63″  3/1 1.09 – 1.11
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.85 – 0.87


The went deadly slow as no considerable grey fabric inquiries were noticed from the Far Eastern countries. Narrow width suppliers are looking for the orders but market is not supportive. The offers which made last week, customers did not show their interest because of high offering prices. No considerable inquiries were received from Korean, China, Japan, Vietnam and Indonesia. Limited inquires were received from Bangladesh but the customer idea price was about 8~10% lower than the offers.

Currently good suppliers are booked till end of Oct and offering early Nov onward deliveries whereas average suppliers are still offering end Oct onward deliveries. Asking prices remained firm with upward trend during the week due to firmness in yarn prices. European customers are back after their summer holidays but they are exchanging limited inquiries due to unstable market demand.

USA market also remained silent without any confirm inquiries Wider width suppliers are comfortably booked till October and offering end Nov onward deliveries Prices for wider width also remained stable and firm due to firm yarn prices.

Following are the closing rates based on CNF Far Eastern markets:

Construction Price US$/YD CNF Far East
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.03 – 1.05
16X12/108X56 63″  3/1 1.12 – 1.14
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.88 – 0.90


Bedding & Towel market providers are expecting raw material prices to come down in the coming days, however this does not seem possible as the orders are booked until early next year as of now and demand will remain high. Prices might come down if the crop output remains lucrative by mid-October.

Bedding & Towel suppliers are riding high due to the massive demand that has hit Pakistan. Prices will remain stable on the current levels in the coming days.


Sustainability remained an important element for Pakistan’s garment manufacturers. Global fashion industry need to look into less reliance on the coal and fossil fuels for their supply chain to address climate change as critical part of Covid-19 recovery phase. Brands and suppliers need to align their sustainability goals and consider this equally important as that of quality, cost and lead times. Factories in Pakistan have already set their strategies accordingly.

Healthy number of inquiries were shared in recent past and business was also matured after negotiation. Prices have been firm by the suppliers considering firm raw material prices. At the moment factories have orders in hand to meet their production capacities in full and offering lead times from end December onward for the new inquiries.


Local cotton market remained mixed during the last week due to the lack of interest by spinning mills in buying and selling of cotton by ginners. The rate of cotton witnessed a significant reduction of Rs 400 to Rs 500 per maund. The reason behind the reduction of the rate is that due to the rains, the quality of the cotton produced at present is poor.

Local yarn market is expected to remain dependent on raw cotton prices for next few weeks and prices will be according to demand and supply in each count of yarn.

Local fabric is expected firm market sentiments for coming weeks with limited trading activity for both narrow and wider width looms.

Export yarn market showed good business activity as customers have booked orders. it is projected that business activity will remain good in days to come as demand is increasing but suppliers are showing resistance against customer target prices.

It is expected that narrow width fabric demand may remain slow however wider width business may get better in coming days. The prices will remain stable as currently suppliers are not expecting to reduce the prices because yarn suppliers have good booking with them hence they will resist on customer lower target prices.

Garment factories in Pakistan have orders in hand and working in full capacity. Lead times are being offered from end December onward for the new inquiries.

Bedding & Towel suppliers are riding high due to the massive demand that has hit Pakistan. Prices will remain stable on the current levels in the coming days.

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