Market Report – Pakistan 29 Dec 2020


Cotton market remained bullish due to good demand in domestic market and upward trend in NYCF. Due to the increase in volume, the rate of cotton increased in the local market around Rs. 600 to Rs 700 per maund. KCA showed an increase of Rs. 550 in 2 weeks and touched the level of Rs. 9,950/maund. The reason behind massive increase in the rate of cotton is increase of prices of cotton internationally especially the rate of cotton in New York Cotton Market increased by 6~8 cents during the last two weeks. The major reason behind this increase in prices is increase in the exports of American cotton under the influence of which the rate of cotton in other countries also increased.

Its second time that the price of cotton reached at the highest level of Rs. 10,300 per maund. If the demand increased the rate of cotton may cross Rs. 10,500 per maund which will be highest in season.

The textile mills will have to import 7 million bales of cotton of worth 6 billion dollars to fulfil its needs. Up till now agreements for the import of 3.8 million bales were signed.

Significant increase was witnessed in prices of cotton in international market especially in New York Cotton. USDA weekly export report second time shows an overall increase of exports 400,000 bales of cotton. This time China is on the top of the list by importing more than 200,000 bales while Pakistan was the second biggest importer by importing more than 93000 bales.

In fact, hefty increase was witnessed in the price of New York Cotton because last week’s USDA’s export report shows an increase of 22% in exports and production report of World Agricultural Supply and Demand Estimates (WASDE) showed a decline of more than 2.2 million in the production of cotton worldwide while 15% increase in demand while showed a significant decline in closing stock.

Increasing trend remained continued in the rate of cotton in Brazil, Argentina and Central Asian states while especially the rate of cotton in India increased by Rs 2600 per candy (356 kg) which reached at the highest level of Rs 42,500 per candy while it is hinted that rate may increase further.

Cotton production in the country witnessed an alarming decline of 2.8 million bales, according to a report released by Pakistan Cotton Ginners Association. The report says that more than 5 million bales were produced in the country which is 35.67 percent less as compared to more than 7 million bales produced till December 15 last year.

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


Crude Oil prices opened at USD 47.74 with lower level as compared to last week closing figures.

In this week crude oil price remained firm and stable with slight increase and week closed with gain.

In last day of the week, Crude Oil price closed at USD 48.23 with increase of USD 0.49 cents as of opening figure of week.

  Opening of Week Closing Of Week Change
Price 47.74 48.23 0.49


In last week values of Pak rupee showed stable trend against US Dollar; other major currencies also remained firm both Interbank and open markets.

At the end of week, Euro closed at 1.22 and British Pound closed at 1.34 against USD.

  Selling Buying
LC Sight 160.55 160.50
LC 120 Days 160.35 160.30
Open Market 162.56 158.85


New York Cotton futures opens with low levels on Monday as compare to previous week’s closing figures.

NYCF showed upward sentiment in this week and close with upward tone.

At last day of the week, March 2021 closed at 76.20 with increase of 144 points.

At last day of the week, May 2021 closed at 76.80 with hike of 132 points.

At last day of the week, July 2021 closed at 77.41 with rise of 124 points.


Domestic yarn prices remain firm and good activity was witnessed in the market due to massive demand. Buyers were forced to buy on these prices due to firm sale position of mill and prices in Global market were also not viable. Main reason for increase in domestic price was massive demand in Siro yarn from china and every mill sold in export better prices then local.

PSF prices was increased by Rs.5/kg by IFL in domestic market dated 21st Dec 2020. PTA, MEG prices were stable after declined prices trend of oil in international market but import polyester prices increased for CNF Karachi. For next week, prices are expected to increase further Rs.2~3/kg.

Faisalabad trading market was active in buying and good trade was made in all counts of cotton yarn. Fine counts demand was increased and good sale was made during last week ended. Blended yarn and PV yarn prices was also increased and good sale was reported in all counts.

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

Count Price US$/Bale
16/1 CD 495 – 515
20/1 CD 515 – 540
30/1 CD 580 – 605
20/1 CM 600 – 625
30/1 PC 52:48 445 – 470
40/1 CM 710 – 745
60/1 CM 990 – 1015
80/1 CM 1280 – 1330


Export yarn market remained under bullish sentiment due to massive demand from China for coarse counts.
It has been witnessed that despite of continuous increase in prices from suppliers, customers kept on placing orders in view of good demand after CNY holidays.

Major reason for good demand is smooth business in Chinese domestic market as all factories are running in full swing and yarn demand is good. At the same time, Chinese finished product suppliers have received decent orders for export market.

During the whole year 2020, Chinese customers were under lethargic business activity which kept yarn prices under pressure.

However, in last quarter of 2020, they have been buying very actively which has put an impact of 30% hike in yarn prices. At the same time, customers from other origins i.e Korea, Bangladesh, Europe also showed good business activity and placed orders. Hence, it is expected that price will remain firm and stable with tendency to improved further.

Count Korea Hong Kong Taiwan Japan
16/1 CD 500 – 520 500 – 520 500 – 520 500 – 520
20/1 CD 520 – 545 520 – 545 520 – 545 520 – 545
20/1 CM 605 – 630 605 – 630 605 – 630 605 – 630
30/1 CD 585 – 610 585 – 610 585 – 610 585 – 610
32/1 CD HOS UNWAXED 100% COT. 635 – 645 635 – 645 635 – 645 635 – 645
30/1 CM 635 – 653 635 – 653 635 – 653 635 – 653
32/1 CM 662 – 671 662 – 671 662 – 671 662 – 671
10/1 CD SIRO YARN FOR WEAVING 480 – 500 480 – 500 480 – 500 480 – 500


In current week under review the local fabric market ended the week higher as compared to last week for both narrow and wider width fabrics and prices showed firm posture and continued its upward movement throughout the week.

Weavers raised their asking prices by almost 3~4% due to rise in yarn prices therefore resultantly limited orders confirmation reported in the market as buyer are not ready to digest such hike in prices.

In narrow width major weavers are booked till mid Feb’21 whereas wider width looms are booked till end March’21 and offering onward deliveries.

Local fabric prices of regular items are as follows:

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.25 – 1.27
16X12/108X56 63″  3/1 1.37 – 1.39
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.02 – 1.05


Average business activity was observed for export fabric Far Eastern markets. Suppliers were very much concern on rapid increase in prices and asking reason for the same. At the same time they are holding their buying for some time to understand the market trend.

Asking prices were further increased by 2~3% by the suppliers due to increase in yarn prices.

Currently suppliers are booked till end of Feb and offering early ~ Mid March onward deliveries.

European customers have sent limited inquiries for price checking only as they were not into buying plan due to coming Christmas and New Year holidays.

USA market remained slow as no considerable buying was witnessed.

Wider width suppliers are fully booked till end of March and offering April onward deliveries.

Prices for wider width was firm due to firmness in yarn prices.

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

Construction Price US$/YD CNF Far East
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.26 – 1.28
16X12/108X56 63″  3/1 1.36 – 1.38
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.02 – 1.04


Bedding & Towel manufacturers have been riding high with ample of order bookings, but with few caveats.
The orders for the holiday season have been shipped and now they are aiming for spring summer collections. Luckily despite the COVID year of 2020, the industry has performed really well and many of the looms for wider width are heavily booked for the foreseeable future.

This has seen tremendous developments, stretched deliveries and cost driven decisions.


Business activities from foreign buyers in garment industry have been slow owing to upcoming Christmas and new year holidays. However factories at the same time are busy in operational and production related activities to meet agreed shipments of orders in hand. Sustainability remained a very important element considering environment safety. On average factories have space to offer deliveries from April onward for new inquiries.

On the global front the UK is set to exit EU trading rules from 31st Dec.2020. This officially for business will make the UK and EU form two separate markets, and the end of free movement. New rules are to be worked out for trade deals. This might has its impacts on new orders placement with Pakistani manufacturers.


About future market it is expected that Local yarn market will remain firm due to shortage of cotton, firm in NYCF and good demand and massive orders in Pakistan market. Further price trends will be according to demand and supply of different yarn counts which will lead price level.

Cotton market remained bullish due to good demand in domestic market and upward trend in NYCF. Also increase price trend in International market kept the prices firm and strong.

Local fabric business was slow as customers did not digest further 3~4% price hike. It is expected that local fabric prices will remain bullish trend.

Export yarn activity was good as Chinese customers continue buying despite of increase in prices. it is expected that price will remain firm and stable with tendency to improved further.

Export Fabric business remained slow during the week and expected to remain slow in coming days as well due to Christmas and New Year holidays.

The earliest deliveries for bedding & Towels orders placed in Jan 2021 will take about 90 to 120 days. This shows the strong riding of the industry for the coming days.

Garment Industry of Pakistan observed a slow mode of activities from foreign buyers due to Christmas and new year holidays. It is expected that customers will start sharing new inquiries and order placement from end Jan or Feb next year.


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