Market Report -Pakistan 2nd March 2021


Last week in local cotton market, moderate buying was seen by buyers and trading volume was realistic, due to hype in prices buyers were interested in further buying, but ginners were not interested in open selling in anticipation of good profit margins in coming days.

In local cotton market, price of cotton reached at the level of Rs. 13000 per maund which is highest in eleven years. The biggest reason behind increasing trend in the price of local cotton is that the rate of cotton in international market which was 84 American cents after increasing by 10 American cents it reached 94 American cents but on Friday the rate decreases by 4 American cents. Fluctuation was observed in the rate. KCA increased rs.1100 and touched the level of rs.12,200/maund. In the local cotton market, the rate of cotton also increased the biggest reason behind is the alarming decline in cotton production which is 57 lac bales lowest in thirty years.

New York Cotton is continuously increasing but on Friday the rate of New York Cotton decreased by four American cents. Although, according to the weekly USDA export report the exports witnessed an increase of 107 %. The America has suspended its trade agreement with China due to profit taking on high rate. This week too China was the biggest buyer of American cotton. The increasing trend was witnessed in the rate of cotton in Brazil, Argentina and Central Asian states while the rate of cotton in India is Rs. 39500 per candy in the start now after increasing Rs. 6200 per candy reached at the highest level of Rs. 45700 per candy.

The price of cotton in Sindh is in between Rs. 11,000 to Rs. 12,500 per maund. The price of Phutti in Sindh is in between Rs. 4000 to Rs. 5000 per 40 kg. The price of cotton in Punjab is in between Rs. 11,200 to Rs. 13,000 per maund. The price of Phutti in Punjab is in between Rs. 4800 to 6100 per 40 kgs. The price of Phutti in Overall prices of cotton were in the range of USC 85~99 Lbs. (11000~13000/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 80.00 84.00 4.00
Highest 87.00 96.00 9.00


Crude Oil prices opened at USD 61.49 with high level as compared to last week closing figures.

In this week, crude oil prices showed upward trend, while dropped on closing, hence dropped on positive side at the end of week.

In last day of the week, Crude Oil price closed at USD 61.50 with increase of USD 0.01 cents as of opening figure of week.

  Opening of Week Closing Of Week Change
Price 61.49 61.50 0.01


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 1.21 and British Pound also closed on negative note with figure 1.40 against USD.

  Selling Buying
LC Sight 158.43 158.38
LC 120 Days 158.19 158.14
Open Market 160.54 156.87


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

NYCF showed upward trend in next two sessions but later dropped till closing and closed on negative side at the end of week.

At last day of the week, MAR 2021 closed at 88.83 with downward of 358 points.

At last day of the week, MAY 2021 closed at 89.71 with drop of 337 point.

At last day of the week, JUL 2021 closed at 85.18 with decrease of 319 point.


Liverpool Index A was opened at 95.40 with high level from previous week’s closing figure.

In this week Index “A” marched upward and closed on positive side by then end of week.

At last day of the week, LPI “A” closed at 98.50 with the increase of 310 points.

  Opening of the Week Closing of the Week Change
Index A 95.40 98.50 -3.10
Index B 0.00 0.00 0.00


Local yarn activity saw a bullish trend recently. One underlying reason for this upward trend was increase the rising trend of NYCF. Raw material prices also increased including raw cotton and polyester. This resulted in demand & supply disparity. Most buyers absorbed the up charge due to no better alternative.

Faisalabad trade was also witnessed to be stable despite many negative forecasts previously.

Sky-rocketing increase in price was seen for PSF followed by no improvement in import viability. Total increase of Rs.10 was seen for polyester which is also expected to rise in coming week by Rs5. As many mills have handsome number of days booked, price trends are not expected to drop anytime soon.

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

Count Price in Pak Rupees / 10 LBS Price US$/Bale
16/1 CD 2396-2515 605 – 635
20/1 CD 2554-2630 645 – 665
30/1 CD 2870-2950 725 – 745
20/1 CM 2870-2970 725 – 750
30/1 PC 52:48 2237-2396 565 – 605
40/1 CM 3604-3703 910 – 935
60/1 CM 4812-5069 1215 – 1280
80/1 CM 6059-6277 1530 – 1585


Polyester Fibre price showed bullish sentiment and increased by Rs. 10/Kg by early of last week and touched the level of PKR 210/Kg. However, it is still cheaper than the imported fibre as all suppliers increased their prices of fibre.

NYCF remained very bullish in early week, hence given negative impact in the market by the end of week. It is expected that NYCF will show further rise in coming day and drop in not being expected. China cotton is also behaving the same as NYCF.

PC/CVC Yarn suppliers have sold very reasonable quantities in last week at increased price now suppliers are not willing to sell further bulk quantities. Offers validity is short and suppliers are offering small quantities at their desired levels. If we look at the supplier’s situation, they are booked comfortable for more than 2 months and not showing any interest for further sale at the moment as future trend is also bullish.

Export market also showed upward sentiment and prices kept on increasing. Suppliers have been increasing price on daily basis in line of cotton prices. Chinese placed orders at existing price levels showed firm sentiment as well. Bids started with the range Usd 525-535/Bale and materialized on same levels, it seems that market prices will remain firm and upward in coming days with good business activity.

European customers also remained in market and showed good business activity. Demand from European countries is very good but they are still resisting against high prices. Some deals were matured with selected suppliers after tug of war between both parties.

Count USD / Bale  
16/1 CD 620 – 630  
20/1 CD 630 – 640  
20/1 CM 670 – 680  
30/1 CD  
32/1 CD HOS UNWAXED 100% COT.  
30/1 CM  
32/1 CM  


In current week under review the local fabric kept on rising on daily basis despite fall of NYC by end of the week.
Local finishers floated limited inquiries as spinners are not showing any hint of correction in their yarn offers. Weavers booked limited orders with major finishers. However local brands remained very active throughout the week and booked bulk orders at current levels for both narrow and wider width fabrics.

Therefore, weavers extended their booking and now offering deliveries in narrow width from May onward where as they are offering wider width looms delivery by end June / early July onward.

Weavers are not getting yarn offers from spinners due to current sharp rising trend in the whole region and therefore facing tough resistance from spinners in getting yarn prices with some validity.

Local fabric prices of regular items are as follows:

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.50 – 1.52
16X12/108X56 63″  3/1 1.64 – 1.66
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.24 – 1.26


Due to continue rise in prices, customers are only checking prices and not ready to place orders at existing price levels hence no considerable buying was witnessed during the week under review.

Asking price was further increased about 8~10% during the week due to continue rise in NYCF and local cotton prices.

Currently almost all suppliers are booked till end of April and offering May onward deliveries due to good sales position especially from the local / domestic customers.

Price correction was observed in NYCF towards end of the week however it is expected that it will rise again due to good demand of USA cotton as well as short supply of cotton world wide.

Good number of inquiries were received from European customers however no considerable buying was noticed due to too much increase in prices. Wider width business also remained slow during the week.

Suppliers are offering June, July onward deliveries for wider width due to good sales during last couple of weeks.

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 1.52 – 1.54
16X12/108X56 63″  3/1 1.65 – 1.67
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.26 – 1.28


Bedding and towel manufacturers of Pakistan are in trouble due to increase of raw material prices. 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 buyer are confused and waiting for the correction in market. Moreover, slowly gradually buyers has sharing inquiries but buyers are only placing their urgent and serious orders in the market.


Pakistan’s garment industry has found to be in comfortable zone in terms of orders in hand. FW21 orders have been finalized. SS21 placements are in discussion and development phase. US China rift seems to have its positive impact on orders shifting towards Pakistan. Prices have been firm due to firm raw material prices. Currently lead time is being offered from ninety days to hundred and twenty days according to order type.

Globally fashion industry has changed its landscape during 2020. These has been a rapid change in consumer’s demand as most of the buying has gone online. As a result garment manufacturers have to mold themselves according to customer’s changing demand. Today’s customer is more conscious about sustainable products. However, it will take some time for fashion to become truly sustainable.


For the local yarn market, as many mills have handsome number of days booked, price trends are not expected to drop soon.

In the local cotton market, upward price trend was observed due to international hike in prices. It seems that international market will remain firm and upward in coming days and local market too.

Local fabric market is expected to behave in same manner and no major correction expected in the market and our call is to keep on buying to avoid losses.

Knowing all sentiments for the export yarn, market is surely going to gain further and prices will not show any kind of correction rather prices are going to rise further in days to come.

for the Export fabric market, it is expected the customers will re-consider to take buying decision according to the existing price level against their held orders and prices may remain firm in coming days.

Pakistan’s garment industry is in a comfortable zone in terms of orders in hand which has filled factories’ production capacities. Future outlook also seems healthy as the inflow of inquiries and developments from EU and US customers has been observed in recent past.

For Home Textile, we are not seeing any drop in prices due to fluctuation in cotton and polyester. But hoping to get order confirmations in future.

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