Market Report – Pakistan 2 Nov 2020


In Last week, buyers and spinners showed cautious buying because the new wave of COVID 19 has negative impact on the markets. If the lock down is again imposed by United States and Europe then it will have a negative impact on business especially the exports of textile products will be affected. On the other hand, delivery of cotton imported from foreign countries may also be affected.

Large textile groups buy cotton from abroad due to sharp decline in cotton production in Pakistan. More import deals are being made. Importers of cotton told that so far deals for the import of about 27 lac bales have been signed.
Soft price trend was witnessed in the prices in this week due to cautious buying. The price of good quality cotton was in range of Rs. 9000~10200. KCA decreased rs.100 and touched the level of Rs. 10,000/maund.

The rate of dollar is continuously decreasing as compared to Pakistani Rupee and the rate of dollar after decreasing by Rs 6 reached at Rs 160. It is expected that rate of dollar after depreciation will reach at Rs 155. The depreciation of dollar will have positive impact on import of cotton while it has negative impact on exports of textile products.

Mixed trend was witnessed in international cotton market. Firstly, the NYCF cotton reached at the highest level of 72 American cents for December. But on Friday due to fear of lock down after the increase in COVID 19 especially in Europe bearish trend was seen in commodities market worldwide. The Rate of December New York Cotton reached 68 American cents after decreasing.

However, trading volume will remain low due to the threats of COVID 19. Bearish trend was witnessed in international commodities markets due to circulation of news of increasing threats of COVID 19. It is feared that there is uncertainty in near future.

Weekly USDA export report was encouraging an increase of 27 % was witnessed as compared to last week. Pakistan was the biggest importer this week also. The American elections are going to be held this week. The elections will have an impact on the rate of cotton. Moreover, the rate of cotton can be decreased in India, Brazil, Argentina and Pakistan due to the second wave of COVID 19.

The price of cotton in Sindh is in between Rs 8800 to Rs 10,000 per maund. The price of Phutti in Sindh is in between Rs 4700 to Rs 5100 per 40 kg. The price of cotton in Punjab is in between Rs 9800 to Rs 10,200 per maund. the price of Phutti in Punjab is in between Rs 4700 to 5300 per 40 kgs. The price of Phutti in Overall prices of cotton were in the range of USC 68~77 Lbs. (8800~10,200/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 68.00 68.00 0.00
Highest 78.00 79.00 1.00


Crude Oil prices opened at USD 38.56 with low level as compared to last week closing figures.

In this week, crude oil price increased in next session, later marched downward and closed on negative side at the end of week.

In last day of the week, Crude Oil price closed at USD 35.79 with decrease of USD 2.77 cents as of opening figure of week.

  Opening of Week Closing Of Week Change
Price 38.56 35.79 -2.77


In last week values of Pak rupee 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 1.16 and British Pound also closed on negative note with figure 1.29 against USD.

  Selling Buying
LC Sight 160.58 160.53
LC 120 Days 160 159.95
Open Market 162.61 158.90


New York Cotton futures opened on higher levels on Monday as compare to previous week’s closing figures.

NYCF marched downward in this week and closed on negative side by the end of week.

At last day of the week, DEC 2020 closed at 68.92 with decrease of 319 point.

At last day of the week, MAR 2021 closed at 69.78 with downward of 294 points.

At last day of the week, MAY 2021 closed at 70.58 with drop of 264 point.


Local yarn market remained firm and stable in asking prices during the week under review. Generally the sales was slow. On the other hand, buyers were only buying their urgent required yarn.

PSF prices was increased by Rs.2/kg by IFL in domestic market dated 26th Oct 2020. PTA, MEG prices were stable after declined prices trend of oil in international market but import polyester prices increased in International polyester fiber. For next week, prices are expected to remained stable.

Faisalabad trading market was stable in buying and limited trade was made in all counts of cotton yarn. Blended yarn was also in average demand, due to anticipation of increase in polyester.

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

Count Price US$/Bale
16/1 CD 475 – 495
20/1 CD 505 – 520
30/1 CD 560 – 580
20/1 CM 570 – 585
30/1 PC 52:48 430 – 450
40/1 CM 695 – 710
60/1 CM 940 – 965
80/1 CM 1210 – 1305


Customers remained in the market and kept on checking prices but order materialization was quite dull. It seems that customers have booked handsome quantities in last couple of weeks due to which they are under wait and see mode now and focusing to get their shipments.

At the same time, suppliers are comfortably booked and not showing any panic selling hence, we might see firmness in market in days to come.

Cotton prices in Pakistan remained firm but NYCF showed slight drop in last 2 sessions of the week.

Chinese customers kept on checking prices and have confirmed some orders with required prices and deliveries. As deliveries are dragged forward, hence, customers are not placing bulk quantity orders.

European customers kept on checking prices for normal as well as specialized yarns. However, order materialization was slow.

Count Korea Hong Kong Taiwan Japan
16/1 CD 465 – 475 465 – 475 465 – 475 465 – 475
20/1 CD 480 – 490 480 – 490 480 – 490 480 – 490
20/1 CM 540 – 550 540 – 550 540 – 550 540 – 550
30/1 CD
30/1 CM 560 – 570 560 – 570 560 – 570 560 – 570
32/1 CM 580 – 590 580 – 590 580 – 590 580 – 590
24/2 CD 550 – 560 550 – 560 550 – 560 550 – 560


In current week under review the local fabric rallied-up for another week for both narrow and wider width fabrics.

Buyers floated inquiries in the market as yarn and fabric prices consistently increasing on the other side weavers remained very cautious in their offers and some are still hesitant to offer.

Weavers booked orders with increased inflows as compared to last week level. Almost 1-2% price increment reported towards the end of the week.

Weavers are comfortably booked in narrow width till 3rd week december’20 and in wider width weavers are booked till 3rd week January ~ End January’21 and offering onward deliveries.

Local fabric prices of regular items are as follows:

ConstructionPrice US$/YD ExMill
20CDX16CD/128X60 –  63”  3/1 ‘’S’’ TWILL PAK CTN1.16 – 1.18
16X12/108X56 63”  3/11.29 – 1.31
20CDX20CD/108X58 63”  3/1 ‘’S’’ TWILL PAK CTN0.98 – 1.00


Mixed trading activity was seen from the Far Eastern sectors. Korean customers have bought good quantities during the week. Chinese and Japan customers also bought decent quantities. There was good quantity of inquiries from Bangladesh but limited deals were finalized due to difference in offered and target prices.
Asking prices remained stable due to stable raw material prices after long time.

Currently good suppliers are booked till end of Dec and offering early Jan ~ mid Jan onward deliveries whereas average suppliers are booked till mid of Dec and offering end Dec onward deliveries. 1/1 plain order delivery is still long way as they are offering Feb onward deliveries mostly.

For the European markets, slow market sentiment was seen during the week as customers are very cautious while planning new orders due to fear of second wave of Covid-19. Most of the European countries have started lock down in their different areas according to the Covid situation. This has impact on the business which become slow.

If the Covid situation gets worst in Europe then business activity may dull and lifting for the confirmed order also may effected. This will cause correction in prices which goes very high now a days.

USA market was also slow during the week due to elections in the states.

Wider width suppliers have good sales in hand hence they are not in hurry for more booking. They have covered their sales till Jan and offering Feb ~ March onward deliveries.

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

ConstructionPrice US$/YD CNF Far East
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN1.14 – 1.16
16X12/108X56 63″  3/11.26 – 1.28
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN0.98 – 1.00


Bedding & Towel exporters have been thriving from last 5 months with tremendous amount of order bookings both in terms or value and volume. The industry is exporting in full swing. This surge has driven up the raw material cost as the supply hasn’t been able to catch up with this demand. Currently the prices being quoted are on the higher side with over 7 to 10% increase YOY comparison.

Earliest deliveries available are of March 2020 for new order equivalent to a 40ft. container. For repeat orders, the earliest delivery available is of 55 to 60 working days.


Pakistan garment industry is sailing through its fruitful journey amid orders in hand for SS21 season. Further developments are also in progress for FW21. Factories are putting all their resources and efforts to meet the agreed shipment dates. Prices have been firm owing to upward trend of raw material prices in domestic market. Due to full capacities with factories, deliveries have been offered with a lead time of ninety to one hundred and twenty days for the new inquiries.

The ongoing global pandemic has forced the industry to undergo a dramatic transformation that is playing out in real time. A strong brand-supplier relationship is the key to survival. Some apparel brands are appear to be engaging more with their suppliers in key areas like planning and forecasting. According to Better Buying Index report published during end October 2020, this close relation will enhance suppliers’ abilities to plan their production responsibly and provide reliable employment to their workforce.


Domestic yarn market will remain dependent on raw material and domestic cotton prices for next weeks which are expected to remains firm due to shortage of quantity and yarn prices will according to demand and supply.

In the local cotton market, comparatively business was slow down due to expected new COVID 19 waves. It is feared that wave of COVID 19 will increase in coming days as result of which price of cotton may come down. Buyers focused on import of cotton, deprecation of US$ against Pak currency also gave edge to buyers.

Local fabric business expected to remain steady trend for both narrow and wider width looms for coming weeks.

Market remained firm and stable with handsome nominal activity for Export yarn market. Suppliers remained firm with no flexibility in prices whereas customers adopted wait and see sentiment.

Narrow and wider width business activity was good during the week for Far eastern markets and prices were stable however in coming weeks, it is expected that business may slow for European and USA market. Prices may remain stable.

Garment factories in Pakistan are running in full capacities with sizeable orders in hand. Global brands are working in close liaison with factories in key areas like planning and forecasting to get maximum output.

The bedding and towel exporters might see a downfall of order placements if the prices remain on the higher side, and unless the delivery position improves in the coming days.

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