Market Report – Pakistan 17 Nov 2020


In Last week, buyers and spinners showed cautious buying and business volume has also shrunk. Due to the fear of COVID19 textile mills are avoiding to buy both local and imported cotton. Many farmers are not taking
interest in cotton harvesting in next season due to less production. If Cotton growers started taking interest in
other crops, it will be impossible to bring them back.

Price of cotton decreased by Rs. 300 to Rs. 400 per maund. The price of Phutti is also decreasing. The price of
good quality cotton was in range of Rs. 8800~9700. KCA remained stable at the level of Rs. 9,400/maund. Due to
expected second wave of COVID , import of cotton was also restricted due to which it is difficult to determine the direction of market.

According to the importers of cotton up till now textile an spinning mills have signed agreements for the import of 30 lac bales of cotton. If the dollar falls further, it will be beneficial for cotton importers. However, according to the sources of All Pakistan Textile Mills Association due to the alarming decline in cotton production in the country this year, textile mills will have to import about 50 lac bales of cotton of worth three billion dollars to meet their needs.

Up till, now rupee is strengthening against dollar. There is a possibility that in coming day’s dollar will come at the lowest level of Rs. 155. But on the other hand, the depreciation of the dollar will have a negative impact on the export of textile products.

Mixed trend was witnessed in international cotton market. The Rate of new York Cotton increased by 71 cent after the coming of news of vaccine of COVID19 but after that the rate of cotton after falling drastically closed at 68.46 per pound. The rate of cotton was not increased despite of the fact that USDA weekly export report shows an increase of 30 %. Although, Pakistan was the biggest importer of American cotton this time also. The rate of cotton remained over all stable in Brazil, Argentina and Africa but a slight increase was witnessed in the rate of cotton in India.

The price of cotton in Sindh is in between Rs. 8800 to Rs. 9500 per maund. The price of Phutti in Sindh is in
between Rs. 3700 to Rs. 4600 per 40 kg. The price of cotton in Punjab is in between Rs. 8900 to Rs. 9700 per
maund. the price of Phutti in Punjab is in between Rs 3900 to 4700 per 40 kgs. The price of Phutti in Overall
prices of cotton were in the range of USC 68~74 Lbs. (8800~9700/ maund).

 Opening Of the WeekClosing Of the WeekChange


Crude Oil prices opened at USD 40.29 with high level as compared to last week closing figures.

In this week, crude oil price increased in two session, later showed downward, hence closed on negative side
at the end of week.

In last day of the week, Crude Oil price closed at USD 40.13 with decrease of USD 0.16 cents as of opening
figure of week.

 Opening of WeekClosing Of WeekChange


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 positive note with figure of 1.19 and British Pound also closed on
positive note with figure 1.32 against USD.

LC Sight158.32158.27
LC 120 Days157.42157.37
Open Market160.39156.72


New York Cotton futures opened on higher levels on Monday as compare to previous week’s closing figures. NYCF marched in this week and closed on negative side by the end of week.

At last day of the week, DEC 2020 closed at 68.46 with decrease of 154 point.

At last day of the week, MAR 2021 closed at 70.40 with downward of 128 points.

At last day of the week, MAY 2021 closed at 71.27 with drop of 128 point.


Local market remained Quite another week in a row. All weavers were waiting for correction as NYC crude Oil,
US$ and local cotton dropped. On the other hand, suppliers were interested to extend their sale booking on these rates as yet they don’t have stocks sales/pressure.

PSF prices were remained stable during last week ended. PTA, MEG prices were stable after drop in 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 slow in buying and limited trade was made in all counts of cotton yarn. Blended
yarn was also in average demand, and limited sale was reported in all counts.

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

CountPrice US$/Bale
16/1 CD475 – 490
20/1 CD495 – 515
30/1 CD550 – 575
20/1 CM560 – 580
30/1 PC 52:48425 – 450
40/1 CM685 – 710
60/1 CM950 – 970
80/1 CM1225 – 1310


Export yarn market remained slow with limited business activity. Customers kept on checking prices but remained on side line due to hefty bookings in hand. On the other side, suppliers are showing flexibility in prices and have showed drop in their offers. We might see softness in prices in days to come.

Major reason for this softness is slow demand from china and other regions. Although prices of cotton are firm
and not dropping but demand is putting impact on the prices. Moreover, prices were also become abnormal due to which customers stopped buying of yarn.

Cotton prices in domestic market are also firm due to shortage of crop in this season hence; we might see market moving only on the basis of demand and supply.

Chinese customers kept on checking prices and have confirmed limited orders with required prices and deliveries. As deliveries are dragged forward ad prices are touching sky high level, 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.

CountKoreaHong KongTaiwanJapan
16/1 CD455 – 465455 – 465455 – 465455 – 465
20/1 CD475 – 485475 – 485475 – 485475 – 485
20/1 CM530 – 540530 – 540530 – 540530 – 540
30/1 CD
30/1 CM550 – 560550 – 560550 – 560550 – 560
32/1 CM570 – 580570 – 580570 – 580570 – 580
24/2 CD540 – 550540 – 550540 – 550540 – 550


In current week under review local fabric market showed modest activity and slow activity reported throughout the week for both narrow and wider width fabrics.

Buyers floated limited inquiries in the market as yarn prices remained volatile and weavers showed slight
softness in their offers.

Limited orders confirmed after tough negotiations in the market at last week price inflows. Weavers are comfortably booked in narrow width till end December’20 but in wider width weavers are comfortably booked till End January’21 and offering onward deliveries.

Local fabric prices of regular items are as follows:

ConstructionPrice US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN1.20 – 1.22
16X12/108X56 63″  3/11.30 – 1.32
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN0.98 – 1.00


Comparatively slow market activity was witnessed during the week under review. Customers were in the opinion that fabric prices are getting soft hence they prefer to wait for some time.

Limited inquiries were exchanged from China, Korea, Japan, Bangladesh and Vietnam resultant very limited buying was witnessed. Customers are waiting right time for placing bulk order now. Asking prices were stable with soft tone due to soft raw material prices and less demand.

Currently good suppliers are booked till end of Dec and offering early ~ mid Jan onward deliveries whereas
average suppliers are booked till mid of Dec and offering end Dec onward deliveries however 1/1 order
deliveries from Feb onward mainly.

European customers have sent limited number of inquiries whereas no considerable buying was reported due to slow demand and serious second wave of COVID-19. No major business activity was seen from USA buyers as

Wider width suppliers are comfortably booked till end of Jan and offering Feb onward deliveries. Some of the weavers are offering even March deliveries. Suppliers are expecting mixed trading activity in coming days.

ConstructionPrice US$/YD CNF Far East
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN1.20 – 1.22
16X12/108X56 63″  3/11.32 – 1.34
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN1.00 – 1.02


Bedding & Towels manufacturers are operating at their maximum capacity with loom availability being very
tight. This has resulted in prices staying firm, with very few possibilities of acceptance negotiation taking place.
Orders are being entertained where possible and the prices get accepted by the foreign buyers.

Basic to higher thread counts such as 76×68 and 100×90 are mainly in demand but the supply of 30s and 40s yarn is not able to keep up with the demand due to shortage of cotton crop and polyester fiber being on the
higher side.


Pakistani garment manufacturers are comfortable with orders booking until March 2020 and does not seem in a
hurry to grab further orders immediately. Prices have been firm owing to firm raw material prices. With the second wave of pandemic and leading markets going into lockdown, customers are also in wait and see mode to
take any firm decision over new placements. This pattern might prevail in the upcoming weeks as well. Still
developments are in progress for new articles.

Simultaneously demand patterns have seen a change in the past specially business to consumer market has observed a fundamental change in past 20 years. However, B2B has not changed much. It still relies on human interaction, it relies on personal network. There is a need to build a platform to help businesses connect and
build relationships with each other to find out solutions.


Domestic market remained slow during the week and expected to remains same for next week due to shortage of raw cotton. Further price trends will be according to demand and supply of different counts which will lead price level.

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 was slow due to soft trend in prices hence customer adopted wait and see attitude. It is
expected that business activity may remain slow in coming weeks until the raw material prices adjusted at
certain level.

Export yarn market remained mixed with limited business activity. Price will show slight softness in days to
come a head of slow demand from customers. However, it is actually correction in prices as prices were moved
abnormally high and now its coming to the logical levels.

Export fabric business activity was slow during the week. Customers are holding bulk orders anticipating price
correction. Next week business activity will also remain slow until the yarn prices are stable which are soft now
a days.

Pakistani garment manufacturers are comfortable with orders booking until March 2020. Prices have been firm
owing to firm raw material prices. New deliveries are being offered from March 2020 onward.

For home textile, hedging towards the next season we are hoping for the prices to drop with settlement of many
factors in the coming months and with supply side stabilizing and deliveries easing out the order turnaround will be good.

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