Market Report – Pakistan 22 Sep 2020


Last week in the local cotton market, Moderate business activity was seen, needy buyers showed in buying, while big and major buyers were keep focusing on import of cotton. Cotton business this year production and quality have declined dramatically due to unfavorable weather conditions, Corona virus lockdown and especially due to poor quality of seeds. As a result, farmers have suffered huge losses. Cotton and Phutti prices rose in this week, due to poor quality of cotton and after the reports of decline in cotton production. Prices were increased 200 to 300 rupees per maund. KCA also increased rs.150 and touched the level of rs. 8700/maund. It seems that prices may increase further in coming days due to said reasons.

Increasing trend was witnessed in the rate of cotton in international market. Fluctuation was seen in the New York Cotton due to different reasons. Despite rising tensions between China and the United States, China continues to buy cotton from the United States in abundant quantity. According to this month weekly export report of USDA China is on the top after importing 95,000 bales. Although there is an over all decrease of 19 % was witnessed in exports. The rate of cotton remained stable in China and Brazil however, the prices of cotton in India increased relatively.

According to the statistics released by Pakistan Cotton Ginners Association till September 15, 2020 extraordinary reduction of eight lakh bales (44.22%) in cotton production was witnessed as compared to last year production during this year. The extraordinary decline in cotton production came as a surprise, no one was expecting a drastic reduction in cotton production however crop was damaged during the last rains. Moreover, the quality of cotton was also affected due to rains.

This year’s cotton production is lower than last year’s and the mills will have to import more cotton to meet the demand. Although large groups of textile mills are currently importing cotton.

The rate of cotton in Sindh is in between Rs 8200 to Rs 8700 per maund. The rate of Phutti in Sindh is in between Rs 3400 to Rs 4000 per 40 kg. The rate of cotton in Punjab is in between Rs 8500 to Rs 9000 per maund. the rate of Phutti in Punjab is in between Rs 3500 to 4200 per 40 kgs. Overall prices of new cotton were in the range of USC 60~66 Lbs. (8200~9000/ maund).

Opening Of the Week Closing Of the Week Change
Lowest 59.00 60.00 -1.00
Highest 63.00 66.00 -3.00


Crude Oil prices opened at USD 37.26 with slightly low level as compared to last week closing figures.
In this week, crude oil prices showed upward trend and closed on positive side at the end of week.
In last day of the week, Crude Oil price closed at USD 40.97 with increase of USD 3.71 cents as of opening figure of week.

Lowest Highest Change
Price 37.26 40.97 3.71


In last week values of Pak rupee slightly appreciated 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 1.19 and British Pound closed on positive note with figure 1.29 against USD.

At last day of the week, DEC 2020 closed at 65.66 with drop of 96 point.

Selling Buying
LC Sight 165.85 165.80
LC 120 Days 165.41 165.36
Open Market 167.96 164.14


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

At last day of the week, DEC 2020 closed at 65.66 with drop of 96 point
At last day of the week, MAR 2021 closed at 65.58 with downward of 88 points.
At last day of the week, MAY 2021 closed at 67.35 with decrease of 82 point.


Local yarn market remained stable during this week ended. Prices in asking were stable and mills sold some order against firm bids. No mill is carrying stock and have day to day forward sales as well. All counts were easily selling in local market now a days and weavers are also getting yarn against sold fabric orders.

PSF price was stable. 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 active in cotton yarn counts, and trade was made in 40/1, 52/1 and 60/1 counts. Pc and pv yarn were in average demand and there was no change in prices. Staple season going end and limited demand for forward delivery was notice.

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 remained under handsome business activity as customers from all regions remained in market and kept on placing orders. Suppliers have mainly sold good quantities in coarse counts which is the reason of firm sentiment in the market. Chinese customers remained in market and kept on placing orders at every price level.

European customers also showed improved activity in terms of enquiry but order placements is slight slow as they are still hesitating against high asking prices. It seems that in coming day, prices may show further incline of 1-2% as now suppliers are hesitating to confirm orders at prevailing rates and increased their prices due to good demand.

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.

Count Korea Hong Kong Taiwan Japan
16/1 CD 415 – 425 415 – 425 415 – 425 415 – 425
20/1 CD 425 – 535 425 – 435 425 – 435 425 – 435
20/1 CM 495 – 505 495 – 505 495 – 505 495 – 505
30/1 CD
30/1 CM 520 – 530 520 – 530 520 – 530 520 – 530
32/1 CM 530 – 540 530 – 540 530 – 540 530 – 540
24/2 CD 485 – 495 85 – 495 485 – 495 485 – 495


In current week under review the local fabric market remained range bound throughout the week for both narrow and wider width fabric. Buyers floated inquiries and weavers also confirmed orders after tough negotiations at improved price level for both narrow and wider width fabrics.

In narrow width weavers are booked till 3rd week of October ~ End October’20 and also covered their wider width looms till early November ~ mid-November and offering onward deliveries.

Local fabric prices of regular items are as follows:

Construction Price US$/YD ExMill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.02 – 1.04
16X12/108X56 63″  3/1 1.10 – 1.12
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.86 – 0.88


Slow market sentiment was noticed during the week. Customers did not take interest in fresh buying. Limited number of inquiries received from Korea, China, Indonesia and Japan resultant limited buying was witnessed however bulk orders are still held by the customers as they are waiting to get reduced prices. According to the suppliers point of view, the prices will remain firm because of short cotton supply this year.

Customers have accepted about 3~4% price increase and booked some orders however prices were increased about 6~7% during one month time
Asking prices were firm with tendency of increase by the supplier through the week. Currently suppliers are booked till end of Oct and offering early ~ mid Nov onward deliveries.

European customers have resumed their offices and now fully operational. Suppliers have received good flow of inquiries both in narrow and wider width however customers are still evaluating the offers and expected to start placing orders soon.

USA market is still quite with no major business activity.
Wider width suppliers are booked till end of Nov and offering end Dec onward deliveries. Some of the suppliers are offering even Jan onward deliveries.

Keeping in view of good demand of wider width fabric both in domestic and international markets, suppliers are increasing their wider width production capacities which will be in operational from next year.

It is expected that business activity will pick up on coming days both from Far Eastern and European side however prices may remain firm as reduction in prices seems difficult.

Construction Price US$/YD CNF Far East
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.04 – 1.06
16X12/108X56 63″  3/1 1.12 – 1.14
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.88 – 0.90


Bedding and towel market will experience a price increase in the coming days due to the upcoming shortage speculation of cotton harvest. And the demand is all time high which has heavily booked the looms, and the yarn prices are also not stable as to high.

Delivery lead times are stretching to 80 to 90 days for new orders and for repeat from 60 to 75 days. It is expected that prices and lead time will remain high with a strong demand of orders for bedding and towels in the comings days.


Pakistan garment industry is almost back to its normal working after Covid-19. US garment retail continued its upward trajectory during August. UK retail also continued to rise but clothing sales are still down to their pre-pandemic levels which is quite natural as things are getting back to normal life slowly gradually. Apparel manufacturers in Pakistan who are mainly dependent on US and EU market have received a very healthy response from buyers of these origins in recent past, hence fulfilled their production capacities. Apparel manufacturers here have space to offer deliveries for new inquires from end Dec and January onward on average depending upon type of the garment and order size.

Amid growing concerns and confusion over the sheer number – and duplication – of fashion industry sustainability efforts, organizations are forming new alliance to take the first steps towards integrating their sustainability initiatives into a shared resource. Signatories of the UN Fashion Industry Charter for Climate Action have developed a new guide to help companies identify what climate actions to take and which initiatives and programmers could take them closer to de-carbonization.


Local yarn 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.

In the local cotton market, needy buyers showed interest in fear that prices may increase in coming days due to shortage of cotton. Prices were increased and expected more in coming days. Big buyers will focus on import of cotton.

Local fabric firm sentiments may prevail for coming weeks for both narrow and wider width looms.
Market showed handsome business in export yarn activity as customers have booked orders. it is expected that business activity will remain good in days to come as demand is increasing but suppliers are showing resistance against customer current target prices.

Export fabric business is expected to pick up on coming days both from Far Eastern and European side however prices may remain firm as reduction in prices seems difficult.

Post Covid-19 scenario brings its effects for sustainable products for which garment factories in Pakistan are fully equipped with to cater to the required parameters.

It is expected that prices and lead time for Home Textile products will remain high with a strong demand of orders for bedding and towels in the comings days.

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