Market Report -Pakistan 19 Jan 2021


In Last week in local cotton market, buying remained continued hovering fear that prices may rose further in coming days. while ginners were involved in selling cotton because they were getting reasonable prices. Due to the alarming decline in cotton production the cotton season is squeezed and it will end soon. It seems that the cotton production will be around 60~65 lac bales.

In local cotton market, cotton prices were firm at the level of Rs. 11000 per maund, some deals of Baluchistan cotton were seen at the level of 10400~10600 per maund. KCA increased Rs. 100 and touched the level of Rs. 10,700/maund, although again dropped rs.100 by the end of week. The price of cotton is increasing because of the alarmingly low production. The main reason behind increasing prices of cotton is that textile sector is working on full capacity. The demand from foreign countries is increasing day by day due to which the increasing trend in the prices remained continued.

Bullish trend remained continued in international cotton market. The fluctuation was witnessed in the rate of New York Cotton Market. The Rate of NYCF reached at 82 cent per pound after increasing but after stabling the rate remained around 80 cent per pound.

Bearish trend was witnessed in New York Cotton Market despite of the fact that USDA Worldwide demand & supply report was negative. The reason behind bearish trend was political tension between America and China due to Sinkiang province and bullish trend in dollar index.

According to the weekly USDA export report issued on Thursday Night the exports of cotton witnessed an increase of 113 % as compared to last week. This time too India was the biggest importer after importing one lac fifty-two thousand bales. Pakistan was on number second after importing 56600 bales. New York Cotton was increased due to satisfactory exports.

Bullish trend was witnessed in the price of cotton in Brazil, Argentina and Central Asian states while bullish trend remained continued in India. The price of cotton in India per candy (356 kg) reached at 43400 from 38000.
Few days back Pakistan Cotton Ginners Association has appealed to the government through an advertisement that cotton production in the country has reduced from one crore 50 lac bales to only 55 lac bales. PCGA has appealed to the government to establish Cotton Board; support price of cotton should be fixed as well as zoning should be done.

According to the PCGA country has faced a loss of 36 billion dollars due to the decline in cotton production 60 lac bales will be produced in the country but despite that 4 lac new spindles were installed while more than 3 lac spindles has started their operation. Small scale Auto Coro and MVS spinning machines were installed. Despite low cotton production installation of spindles in such a huge quantity is a question mark. This means that in the future we will be moving in the direction of Bangladesh or Vietnam in textiles where cotton is not produced at all. Most of the units installed in Pakistan at present are of polyester, viscose, and tensile instead of cotton.

The price of cotton in Sindh is in between Rs 9,500 to Rs 10,500 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. Balochi cotton deals were reported in range of rs 11000 to rs.11600 per maund. 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 72.00 72.00 0.00
Highest 84.00 84.00 0.00


Crude Oil prices opened at USD 52.25 with slight high level as compared to last week closing figures.

In this week, crude oil prices showed mix 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 52.36 with increase of USD 0.11 cents as of opening figure of week.

  Opening of Week Closing Of Week Change
Price 52.25 52.36 0.11

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 1.21 and British Pound closed on positive note with figure 1.36 against USD.

  Selling Buying
LC Sight 160.23 160.18
LC 120 Days 160 159.95
Open Market 162.26 158.55


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

NYCF showed mix sentiment and fluctuated on both ways, at the end closed on positive side by the end of week.

At last day of the week, MAR 2021 closed at 80.70 with upward of 27 points.

At last day of the week, MAY 2021 closed at 81.62 with rose of 45 point.

At last day of the week, JUL 2021 closed at 82.37 with increase of 51 point.


Local yarn market remained bullish in term of asking price however limited sale was finalized during this week ended. Suppliers have good sale in hand but availability of yarn is limited. Asking prices were firm during the week. On the other hand, buyers were forced to buy as per their need as there was no cheap option in all region.

PSF prices was increased by Rs.5/kg by IFL in domestic market dated 11th 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 525 – 545
20/1 CD 555 – 575
30/1 CD 615 – 635
20/1 CM 635 – 650
30/1 PC 52:48 480 – 500
40/1 CM 770 – 795
60/1 CM 1070 – 1110
80/1 CM 1370 – 1395


Export yarn market remained firm and stable with nominal business activity as customers were on side line during week 2.

Cotton prices in international and domestic market also remained under fluctuation by keeping the same range.
Suppliers remained firm with flexibility to negotiate against presence of firm bids. Although suppliers are quite comfortable but they don’t want to miss any deal upon receipt of firm and reasonable bids and showing full interest to get the orders done.

It is expected that prices may show slight correction in days to come if buying is stopped by all customers. Suppliers are keeping close eyes on the next buying of Chinese customers before they leave for NY holidays. In case, Chinese buying spell doesn’t come, prices may show correction in weeks to come.

Over all Pakistan is short of cotton crop in this season so cotton prices will remain firm and stable with rising trend.
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 as they have been holding their buying since last couple of weeks and waiting for the right time to place orders.

Count Korea Hong Kong China Japan
16/1 CD 535 – 545 535 – 55 535 – 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 – 660 650 – 660 650 – 660 650 – 660


The local fabric market showed firm trend throughout the week and also fabric prices vigorously rising throughout the week for both narrow and wider width fabrics. Weavers received limited inquiries resultantly limited business reported in the market for both narrow and wider width fabrics owing rising trend of yarn prices.

Weavers couldn’t materialize bulk inquiries as spinners were reluctant to keep their offers valid even for same day. Therefore, weavers could not extend their booking level and offering narrow width 3rd week March onward and wider width from early April onward. Due to current yarn prices in the market, weavers are also hesitant to book bulk orders and are not ready to negotiate prices below to their desired inflows.

Local fabric prices of regular items are as follows:

Construction Price US$/YD Ex-Mill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.28 – 1.30
16X12/108X56 63″  3/1 1.40 – 1.42
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.04 – 1.06


Export fabric far eastern customers are aside of buying now a days due to too much increase in prices. According to them, their end customers are still considering to accept increase price and then they will start buying. Limited number of inquiries were received from Korea, China and Bangladesh but no considerable buying was witnessed.
Asking prices remained firm due to continues increase of raw material prices.

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

Limited number of inquiries were received from European customers but no considerable buying was noticed.
No inquiry was reported from USA buyers during the week under review. Wider width suppliers are booked till end of March and offering April onward deliveries due to good sales in domestic market with home textile buyers

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 1.28 – 1.30
16X12/108X56 63″  3/1 1.40 – 1.42
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.06 – 1.08


Bedding and Towels manufactures functioning with their maximum capacity and looms are booked till Mid-April 2021. Raw material prices are still at the higher side, whereas the market is bounce towards increasing their production capacities with the introduction of new technologies and addition of machineries. Since we have observed slow activity in the market in this week as buyers has already done buying and we are hoping to get new inquiries by end of Jan-21. Moreover, slowly gradually buyers has sharing inquiries but buyers are only placing their urgent and serious orders in the market. As the prices of local polyester is creating hike that impact on the price of final product. Factories are offering 80 to 95 days deliveries.


Overall garment factories in Pakistan have got a healthy placement and running in full capacities. Amongst the four major hubs of sourcing cities i.e. Karachi, Lahore, Faisalabad and Multan some of the factories are also facing challenges in finding the skilled labor as mostly labor force has been engaged with different manufacturers due to good booking in hand. Prices are stiff as the raw material is showing a firm sentiment. On average factories have space to offer deliveries from April onward.

On the global front UK has officially left EU on 31st Dec and decided to work under a new agreement named Trade and Cooperation Agreement (TCA) with EU. On a year-on-year basis, US apparel importers continue to prioritize Asian countries over Central American sourcing manufacturers, with Vietnam, Pakistan, and Cambodia all enjoying a trajectory path.


About future market it is expected that local yarn prices will remains stable and firm 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, firm and stable price trend was observed hence, buyers were continued in buying. But It seems that prices will remain firm in coming days and very low chances that bearish trend will prevail.

Keeping in view current market scenario we expect that market will show firm posture in coming weeks for local fabric.

Export yarn, market remained firm and stable with sluggish business activity. Customers kept on checking prices but remained on side line on expectation of correction in prices. We might see another wave of buying form China before CNY holidays which will give support to prices.

Export fabric situation may remain confused until the prices get stable and order situation may remain mix as customers are still taking long time for buying decision.

A prosperous wave is ahead for the garment industry of Pakistan as the demand is increasing and factories are also enhancing their production capacities to meet customers’ requirements.

For Home Textile, we are not seeing any drop in prices due to fluctuation in cotton and polyester. Sentiments are firm and buyers are placing only serious and urgent orders in the market.

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