Market Report – Pakistan 12 Jan 2021


In Last week in local cotton market, good business trend was seen because ginners were getting satisfactory rate of cotton as well as textile and spinning mills showed their interest in the buying of quality cotton.

In local cotton market, cotton prices reached at Rs 11000 per maund which is highest in last ten years. In this week prices rose around 400 ~500/maund.

KCA also increased Rs. 300 and touched the level of Rs. 10,500/maund. The bullish trend was witnessed in international cotton market. The rate of cotton in the country is continuously increasing and textile sector is running on full capacity due to which the demand and rate of cotton yarn is increasing.

In the year 2010-11 due to extra ordinary buying by China the rate of cotton increased many times in the cotton producing countries of the world.

The Rate of New York Cotton reached at 81.25 American cents per pound but after the USDA weekly export report which showed 47% decrease in export the Rate of Promise reached at 79.77 American cent.

Under the influence of increase in rate of New York Cotton bullish trend was witnessed in the cotton market of Brazil and Argentina.

Bullish trend was also witnessed in the rate of cotton in India. The Cotton Cooperation of India (CCI) is giving incentives to farmers due to which the rate of cotton in India is increasing and cotton farmers are taking interest in growing cotton. While on the other hand in Pakistan cotton farmers are badly ignored due to which the cotton farmers were facing heavy loss for the past many years due to which farmers are disillusioned with cotton and started taking interest in other crops.

Seed cotton (Phutti) equivalent to over 5.3 million or exactly 5,370,553 bales have reached at ginning factories across the country till Jan 3, 2021, registering a 34.02 per cent shortfall compared to corresponding period of last year when arrivals were recorded over Eight million bales.

The price of cotton in Sindh is in between Rs 9,500 to Rs 10,700 per maund. The price of Phutti in Sindh is in between Rs 3600 to Rs 4800 per 40 kg. The price of cotton in Punjab is in between Rs 10,000 to Rs 11,000 per maund. The price of Phutti in Punjab is in between Rs 4500 to 5600 per 40 kgs. The price of Phutti in Overall prices of cotton were in the range of USC 72~8400 Lbs. (9500~11000/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 68.00 72.00 4.00
Highest 80.00 84.00 4.00


Crude Oil prices opened at USD 47.62 with low level as compared to last week closing figures.

In this week, crude oil prices showed upward trend in this week and closed positive side at the end of week.

In last day of the week, Crude Oil price closed at USD 52.24 with increase of USD 4.62 cents as of opening figure of week.

  Opening of Week Closing Of Week Change
Price 47.62 52.24 4.62


In last week values of Pak rupee fluctuated 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 1.22 and British Pound also closed on negative note with figure 1.35 against USD.

  Selling Buying
LC Sight 160.06 160.01
LC 120 Days 159.75 159.70
Open Market 162.11 158.40


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

NYCF rose in next session, later marched downward till closing and closed on negative side by the end of week.

At last day of the week, MAR 2021 closed at 79.77 with downward of 80 points.

At last day of the week, MAY 2021 closed at 80.55 with drop of 86 point.

At last day of the week, JUL 2021 closed at 81.25 with decrease of 103 point.


Local yarn market remained again bullish followed by domestic cotton and NYCF during last week ended. Mills have good sales in hand and suppliers were selling only on their desired prices. Delivery for all counts were short in market. Buyers were forced to buy on these prices as Global market prices remained up.

PSF prices was increased by Rs.5/kg by IFL in domestic market dated 4th Jan 2020. PTA, MEG prices were stable after increased 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 due to gap in demand and supply.

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 510 – 525
20/1 CD 530 – 560
30/1 CD 605 – 620
20/1 CM 615 – 640
30/1 PC 52:48 460 – 485
40/1 CM 745 – 770
60/1 CM 1025 – 1045
80/1 CM 1355 – 1380


Export yarn market remained firm with limited business activity due to continuous upward trend in prices.
Cotton prices in international and domestic market were on move which put impact on yarn prices as well.
Suppliers kept on increasing their prices with every single deal matured.

Suppliers are quite comfortable and not showing any panic selling. Generally sales are made till February and available deliveries are in march.

Over all Pakistan is short of cotton crop in this season so prices are expected to remain firm with rising trend.
It has been witnessed that customers are also digesting market conditions and placing orders with the increase in prices.

We might see another wave of buying from Chinese customers in the month of January before leaving for CNY holidays.

European customers kept on checking prices for normal as well as specialized yarns. It is expected that order placements will start in days to come.

Count Korea China Taiwan Japan
16/1 CD 535 – 545 535 – 545 535 – 545 535 – 545
20/1 CD 555 – 565 555 – 565 555 – 565 555 – 565
20/1 CM 610 – 620 610 – 620 610 – 620 610 – 620
30/1 CD
30/1 CM 630 – 640 630 – 640 630 – 640 630 – 640
32/1 CM 650 – 660 65 – 660 650 – 660 650 – 660


In current week under review, the local fabric market showed volatility throughout the week and fabric prices kept on rising throughout the week for both narrow and wider width fabrics.

Buyers floated limited inquiries and also booked their urgent requirements only as fabric prices were increasing on daily basis and also weaving units unable to offer prices validity for the same day offers.

Limited order reported in the market for both narrow and wider width fabrics as buyers are unable to understand price burst and waiting for the dip.

Further weavers are not ready to negotiate prices below to their desired inflows. At the moment major weavers are comfortably booked in narrow width till mid-March and in wider width weavers are booked till End of March 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 1.27 – 1.29
16X12/108X56 63″  3/1 1.39 – 1.41
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.03 – 1.05


Export fabric far eastern markets remained quite as customers were not accepting current high prices knowing the fact that prices are increasing worldwide. Limited inquiries were received from Korea, China, Bangladesh, Indonesia and Japan but customers did not give feedback on offered prices.

Currently good suppliers are booked till end of Feb and offering early ~ mid March onward deliveries
Polyester prices further increased this week which makes work wear item prices further strong. It is expected that polyester prices will further increase in coming week as well.

Limited inquiries were received from European and USA buyers but customers are not taking interest at existing high prices. It will take further time to absorb such hike in prices.

About 15~20% prices have been increased during last two months and suppliers are in the opinion that prices will remain firm during this cotton season. Wider width suppliers are comfortably booked till end of March and offering April deliveries. Due to shortage of cotton and good demand worldwide, it pushed the prices higher.

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 1.27 – 1.29
16X12/108X56 63″  3/1 1.40 – 1.42
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.05 – 1.07


Bedding and Towels manufactures functioning with their maximum capacity and looms are booked till end-Mar 2021. Raw material prices are still at the higher side, whereas the market is leaping towards increasing their production capacities with the introduction of new technologies and addition of machineries. Observed slow activity in this week as buyers has already done with their major buying for last quarter and now we are expecting next quarter inquiries to be floated in market in late January. Buyers are throwing only serious or urgent orders in the market. However, routine orders are in flow. As prices of cotton and local polyester increasing drastically so prices of the product will be on higher side. Production lead times are stretching to over 95 to 110 days.


Inquiries starting coming from foreign customers for apparel manufacturers in Pakistan. There has been a surge in yarn prices during last couple of weeks and raw material prices are still firm. Resultantly garment manufacturers have also increased their asking prices. Suppliers are finding it difficult to keep the same prices valid which were offered before Christmas holidays during November/December. Overall factories are in comfortable position as for orders in hand. Deliveries are being offered from April onward for the new inquiries.


About future market of local yarn, it is expected that yarn prices will remains firm and same due to massive demand and shortage of cotton, firm in NYCF and massive orders of finished product in Pakistan market. Further price trends will be according to demand and supply of different yarn counts which will lead price level.

In the local cotton market, further improved business activity was seen, prices are increased locally and internationally. It seems that prices may increase further in coming days due to good demand of textile products and the shortage of crop worldwide.

Local fabric market is expected to carry same rising price trend and there’s no possibility of short-term correction due to good demand and short raw material supply.

Market remained firm and stable with normal business activity for export yarn. Customers kept on checking prices and placed orders with their selected suppliers to avoid forward deliveries. We might see another wave of buying from China before CNY holidays.

for Export fabric, It is expected that customer will take some more time to decide of new buying however prices will remain firm with tendency to upward in coming days.

Firm sentiment prevails in the garment industry as the raw material prices are stiff. Factories have space to offer deliveries from April onward for the new inquiries.

For Home Textile, sentiments are firm, we are not seeing any drop in prices due to fluctuation in cotton and polyester. But hoping to get orders from customers in end January or early February.


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