Market Report – Pakistan 19 OCT 2020


Last week, cotton business comparatively remained low due to the cautious buying by the textile and spinning sector. However, upward trend was witnessed in the rate of cotton during the first three days of the week. The rate of cotton increased by Rs. 800 to 900 per maund. The rate of good quality cotton has reached Rs 10500 which is highest in ten years. KCA also increased rs.400 and touched the level of rs. 9900/maund.

Overall bullish trend was witnessed in the international market. The rate of cotton increased in New York Cotton Market due to many factors. It is expected that Rate of New York Cotton will increase further due to Delta Hurricane. However, China has discouraged its import from Australia thus China will import more cotton from America. Keeping in view this development rate of cotton of New York Cotton may not decrease. Bullish trend was witnessed in India over all, the rates of cotton increased by Rs 600 to Rs 800 per candy. Bullish trend was also witnessed in the rate of cotton in Brazil, Argentina and Sudan while the rate of cotton remained stable in Australia.

Production of cotton in the country is decreasing very fast however the concerned government departments are not taking it seriously. There is a dearth of practical steps in this regard. The cotton producing area is decreasing day by day while the sugar mafia is stronger day by day and cultivating sugar cane on the cotton area. The government had no strategy of demarcating the cotton area at district level.

The rate of cotton in Sindh is in between Rs 8800 to Rs 9800 per maund. The rate of Phutti in Sindh is in between Rs 4000 to Rs 5200 per 40 kg. The rate of cotton in Punjab is in between Rs 9400 to Rs 10,500 per maund. the rate of Phutti in Punjab is in between Rs 4700 to 5500 per 40 kgs. The rate of Phutti in Overall prices of cotton were in the range of USC 66~79 Lbs. (8800~10,500/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 63.00 67.00 +4.00
Highest 74.00 77.00 +3.00


Crude Oil prices opened at USD 40.60 with same level as compared to last week closing figures.
In this week, crude oil prices 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 40.88 with increase of USD 0.28 cents as of opening figure of week.

  Lowest Highest Change
Price 40.60 40.88 +0.28


In last week values of Pak rupee apricated 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 1.17 and British Pound also closed on negative note with figure 1.29 against USD.

  Selling Buying
LC Sight 162.77 162.72
LC 120 Days 162.06 162.01
Open Market 164.93 161.17


New York Cotton futures opened on higher 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, DEC 2020 closed at 69.92 with increase of 155 point.
At last day of the week, MAR 2021 closed at 70.56 with upward of 138 points.
At last day of the week, MAY 2021 closed at 71.23 with rose of 130 point.


Local yarn market remains stable in asking prices and firm during last week ended. Good activity was made in all counts for domestic market. All counts delivery is short from all suppliers and mills are sold for 3~4 weeks ahead easily in each count. On the other hand, weavers/exporters booked yarn to feed looms and to get delivery on time in their required counts.

PSF prices were stable during last week ended. PTA, MEG prices were stable after stable prices of oil in international market but import polyester prices increased in International polyester fiber. For next week, prices are expected to increase by Rs.2~4/kg. Faisalabad trading market was active in cotton yarn fine counts, and good trade was made in 40/1, 52/1 and 60/1 counts. Polyester mixed yarn counts demand was also there and good trade was made.

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

Count Price US$/Bale
16/1 CD 465 – 475
20/1 CD 490 – 500
30/1 CD 550 – 560
20/1 CM 555 – 565
30/1 PC 52:48 420 – 430
40/1 CM 680 – 690
60/1 CM 920 – 945
80/1 CM 1190 – 1280


Export yarn market remained bullish with very good demand. Customers from all regions were in market and kept on placing orders with increased levels. Coarse yarn count market is very active and after almost a decade, prices of export orders is higher than domestic yarn prices which has encourages exporters to place orders in different markets. As per current scenario, it is expected that price of yarn will remain firm with tendency to increase furthers as demand is handsome from all markets.

Suppliers are quite firm and not showing any flexibility in asking prices. At the same time, customers are also under bullish sentiment and buying at every prices which is offered by the suppliers. Major reason is shortage of cotton crop worldwide as well good placements of finished products orders.
This has boost up the demand and prices are continuously on the rise.

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. Chinese customers were continuously in the market and kept on placing orders at any prices. Suppliers are booked till December and offering onward deliveries.

Current & Expectation Situation of Import Yarn Prices:

Prices in import yarn remained on fire as suppliers from China, Turkey and Uzbekistan have increased their prices on regular basis. If we analyses the price trend of last 1 month, there has been increase of almost 10-12% in prices which Pakistani customer have digested and have placed handsome quantity orders. Despite of such increase, imported yarn prices are cheaper than domestic market specially in 30/1 cd onwards. Hence, it is projected that customer will keep on placing orders for fine counts and organic yarns.


In current week under review local fabric market showed modest activity and kept its upward momentum throughout the week for both narrow and wider width fabrics. Buyers floated limited inquiries in the market as yarn prices remained volatile throughout the week and weavers were hesitant to offer. However few weavers offered price with increased inflow but only with same day validity. Limited orders reported in the market at increased price inflows.

Towards the end of the week almost 2-3% increase observed due to rise in yarn prices. Weavers are comfortably booked in narrow width till end November’20 but in wider width weavers are comfortably booked till mid-January ~ End January’21 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 1.15 – 1.17
16X12/108X56 63″  3/1 1.27 – 1.29
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 0.97 – 0.99


Good number of inquiries were exchanged during the week from Korea, China, Bangladesh and Japan however limited business was witnessed with the acceptance of 5~6% increase from last week offers. Suppliers have increased their prices by 10~12% just in a week time due to abnormal increase in yarn prices. It is observed that yarn prices increased in Pakistan as well as all other cotton growing countries.

Most of the customers are still holding their bulk buying due to too much increase of prices however they have to place their orders at existing prices as there are very less chances to have price correction or reduction for next couple of months. Suppliers are getting mostly 1/1 plain sheeting orders due to which their capacities are full till Dec and offering now Jan and Feb onward deliveries. For bottom weight in twills and drills, the deliveries are available for end Nov onward. Currently good suppliers are booked till mid of Dec and offering end Dec onward deliveries whereas average suppliers are offering end Nov onward deliveries.

Following were the closing rates based on CNF Far Eastern ports.

Good business activity was seen from European countries. Suppliers have received good orders from Germany, Italy and Portugal mainly in wider width fabric. Wider width suppliers have extended their deliveries and now offering Feb onward deliveries. Due to continuously good demand in wider width fabric, some of the weaving units are planning to increase their production capacities for which they are into process of bring new looms within next couple of months.

Prices for wider width further increased by 6~8% during a week time due to increase of yarn prices. Suppliers were earlier offering competitive prices for wider width having yarn count range of 30 and above based on imported yarn from other cotton growing areas including China and Central Asian states but they have also increased their prices and now there is not much price difference between Pakistani cotton yarn and imported cotton yarn mainly in 30/1 and 40/1 hence suppliers are now offering based on local cotton yarn prices for which fabric prices jumped up further.

USA market responded well during this week as suppliers have received good inquiries however limited orders were booked due to low target prices against high offered prices by the suppliers.


In bedding and towels supply side within Pakistan, order deliveries are stretching to over 90 days and for repeat 50 to 60 days.

Prices are firm to a month’s level.


Pakistan’s apparel industry is operational with sizeable orders in hand. SS21 placements are in production at the moment with all the resources intact to meet the agreed dead lines. Further more FW21 developments are also in discussion. Sampling is being done. A perfect storm of innovation and opportunity in Pakistan’s garment industry is accelerating towards sustainability and circularity. On the global front world’s seven big chemical producing companies are making an alliance to ensure sustainable chemicals used for textile.

Online clothing sales growth in the UK rose for a third consecutive month during last month as consumers expect a cold weather ahead.
US retail sales accelerated their rate of growth in September with the fourth straight month of year-over-year gains – helped by a strong rebound in apparel. This wave has its positive impact on Pakistani garment manufacturers.

At the same time a second wave of Covid-19 in UK and EU market is around the corner and its repercussions are a bit unclear for Pakistan’s apparel industry in terms of order placements. However at the moment inquiry flow and development phase indicates a very healthy sign for future placements. Prices are firm owing to upward trend of raw material prices. New inquiries are being offered for January onward deliveries on average.


Local Yarn market has shown good activity during the week and expected to remain active in coming days. It also will dependent on raw cotton prices for next weeks which are expected to remains firm and yarn prices will also be remain firm for the coming weeks.

Comparatively for Local Cotton market, business has been slow down due to rapid increase in prices. Buyer’s focus is towards import of cotton, deprecation of US$ against PAK currency also has given edge to the buyers. It seems that prices will remain on this level or may reduce in coming days.

Local fabric market has remained mixed with limited booking during the week due to unstable prices. Weavers have good bookings in hand and it is forecasted that fabric prices will remain firm in coming days with good demand. However deliveries will remain stretched.

Export Yarn demand is good hence customers are booking the yarn at every available prices however European customers are hesitating to place orders at current levels but they will also place the orders as there is no choice. It is expected that prices will remain firm with tendency to increase further.

It is most likely that Export Fabric prices will remain firm with tendency to move upward during this cotton season. It is therefore requested and suggested to place your orders asap to avoid delay in deliveries and further increase in prices.

Sizeable volumes of garment have been placed in Pakistan’s factories from foreign customers. Further more, inquiry flow and current developments also indicate a healthy and prosperous time for apparel industry of Pakistan.

Bedding and towels market is going all strong with excellent order bookings, prices are to remain stable but deliveries will also remain stretched with new orders coming out till March 2021.

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