Market Report -Pakistan 9th March 2021


Last week in local cotton market, slow business activity was seen, buyers didn’t show interest due to high asking by ginners, despite of that the international prices were dropping but ginners were remained firm. The business disturbed due to uncertainty among ginners and textile mills regarding import of cotton and cotton yarn from India.

In local cotton market, price of cotton remained firm due to the low business trading, hence KCA increased in mid of week, later dropped on closing and closed at the level of 12000/maund.

Extraordinary fluctuation was seen in the Rate of New York Cotton during the last two weeks. The rate of New York Cotton was increased by 10 cents during last few weeks, that is from 85 cent per pound to 95 cent per pound.

People were of the view that rate may reach at the highest level of one dollar five cents but due to some reason the rate was not increased. The Rate of New York Cotton witnessed a decrease especially due to the increase in the rate of dollar, over purchasing, profit taking and uncertainty. The negative effect of decrease in the rate of New York Cotton was witnessed in international markets especially in the Pakistani market where continuous bullish trend stopped and trading volume also decreased.

On the other hand USDA weekly export report witnessed an increase of twenty nine percent. This week too China was the biggest importer and Pakistan was on number second. In the same way bullish trend stopped in the international cotton markets of Brazil, Argentina and Central Asian states where the rates decreased a little bit. The rate of cotton increased in India but under the influence of New York Cotton the rate comes under pressure.

The cotton production in the country witnessed an alarming decline of 34.18 percent as compared to corresponding period of 2020 when arrivals comprised over 8.5 million bales. According to the statistics released by Pakistan Cotton Ginners Association till March 1, on Wednesday exactly 5,631,191 bales underwent the ginning process i.e. conversion to bales. Cotton arrivals in Punjab were recorded at over 3.5 million or 3,501,580 bales which is 1.5 million bales less as compared to the last year’s production of more than 5 million bales. Cotton arrivals in Sindh were recorded 2.1 million or 2,136,169 bales which is 38.52 percent less as compared to the last year’s production of more than 3.4 million bales.

Due to the alarming decline in the cotton production seven million bales of worth four billion dollars will be imported. Till now agreements for the imports of 4.5 million bales had been signed. There is a pressure on the economy due to cotton production is lowest in 30 years.

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 85~100 Lbs. (11000~13000/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 88.00 88.00 0.00
Highest 100.00 100.00 0.00


Crude Oil prices opened at USD 60.64 with lower level as compared to last week closing figures.

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

In last day of the week, Crude Oil price closed at USD 66.09 with increase of USD 5.45 cents as of opening figure of week.

  Opening of Week Closing Of Week Change
Price 60.64 66.09 5.45


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 1.19 and British Pound also closed on negative note with figure 1.38 against USD.

  Selling Buying
LC Sight 157.23 157.18
LC 120 Days 157.01 156.96
Open Market 159.28 155.63


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

NYCF showed downward trend in whole week, while increased on closing but still closed on negative side at the end of week.

At last day of the week, MAY 2021 closed at 87.76 with downward of 381 points.

At last day of the week, JUL 2021 closed at 88.67 with drop of 379 point.

At last day of the week, OCT 2021 closed at 85.07 with decrease of 267 point.


Liverpool Index A was opened at 95.10 with low high level from previous week’s closing figure.

In this week Index “A” showed mix sentiment, while closed on negative side by then end of week.

At last day of the week, LPI “A” closed at 93.65 with the decrease of 145 points.

  Opening of the Week Closing of the Week Change
Index A 95.10 93.65 1.45
Index B 0.00 0.00 0.00


A visible change in local yarn market was witnessed as compared to last week. Prices remained soft and stable. This softer trend is due to a drop down in NYCF.

This trend was witnessed after weeks of bullish trend. Trading activity remained reasonable rather than extra-ordinary. Buyers have been procuring material only to the extent of fulfilling basic demand rather than future buying.

PSF prices saw an upward trend recently. Likewise, due to further increase in crude oil, PSF prices can be reasonably foreseen to rise further by Rs5.

Spinners are comfortably booked up-to 50-60 days.

Count Price in Pak Rupees / 10 LBS Price US$/Bale
16/1 CD 2375 – 2473 605 – 630
20/1 CD 2532 – 2591 645 – 660
30/1 CD 2846 – 2924 725 – 745
20/1 CM 2846 –  2944 725 – 750
30/1 PC 52:48 2198 – 2394 560 – 610
40/1 CM 3533 – 3650 900 – 930
60/1 CM 4789 – 5044 1220 – 1285
80/1 CM 6005 – 6202 1530 – 1580


Export yarn market remained under sluggish business activity due to softness in cotton prices internationally and domestic market.

Customers remained on side line and very few numbers of enquiries were floated.

Suppliers also showed flexible attitude and showed full interest to grab business where they got some reasonable bids.

Although suppliers are under comfortable sales position but as current levels are giving good profits to suppliers, hence, they tried to grab maximum quantities with reduction of 3-5% in prices to keep themselves covered for April.

Cotton prices in international market remained soft which was another reason of decline in prices from suppliers.
It is expected that prices may show slight soft trend in days to come if buying remains slow. However, it all depends how customers proceed for old orders L/Cs and new orders decision.

If we look at the Chinese customers, they are slow due to expected decline in prices. However, they are taking position only where they get some attractive prices from their selected suppliers.

European customers kept on checking prices for normal as well as specialized yarns mainly for the pending enquiries which were on hold due to high asking prices. So, we might see orders placements in days to come as market is flexible.

Count USD / Bale
16/1 CD 620 – 630
20/1 CD 630 – 640
20/1 CM 670 – 680
16/1 CM 660 – 670
20/2 CD 645 – 655
24/2 CD 675 – 685


The local fabric market started with steady and firm tone but after mid of week hint of slight bearish trend observed and buyers hold their further buying for both narrow and wider width fabrics anticipating correction in prices further.

Weavers booked limited orders against limited inquiries received from local finishers. Local finishers are in wait and see mode as NYC slide down towards the end of the week and expecting downward trend in local market as well. Still weavers are firm in their asking due to firm yarn prices.

Major weavers are now booked till end April /early May in narrow and width whereas covered their wider width looms till end of May and offering deliveries onward respectively.

Weavers are still facing slight resistance in getting poly/cotton yarn offers from their spinners due to rising trend of polyester fiber.

For coming weeks, we expect the market to remain firm and we are not foreseeing any sharp downward trend therefore suggest cautious stance in current circumstances.

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


Export fabric far eastern markers remained slow due to continuous drop in international prices hence customers were monitoring the market for right time to place orders. Limited inquires were exchanged during the week to check the prices however no bulk order was witnessed.

Although NYCF softened which normally other markets followed but fabric prices remained firm without change during the week due to good orders in hand and further expecting good demand in days to come.

Currently good suppliers are booked till mid of May and offering end May onward deliveries whereas average suppliers are booked till end of April and offering Mid May onward deliveries.

European customers have exchanged too much of inquiries during the week which was mainly for price checking.
Suppliers have the opinion that customers from Germany, Italy, Spain and Africa will start placing orders soon as they cannot wait for long.

Wider width prices remained stable and firm due to stable yarn prices in domestic market.

Wider width suppliers are booked till end of June and offering July onward deliveries. Limited deliveries are available during June.

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


In Bedding and Towel market, the manufacturers in Pakistan are disturbed on the rising cost of raw materials, however for the repeat orders the prices are being finalized with exclusion of development charges.

Fibers and polyester prices are continuously going on upward and there are ample of orders are in pipeline and lead time extending to 90 – 110 days due to heavy demand in market. However, we are observing by passing days factories are ready to reduce prices to grab future orders.


Garment factories in Pakistan are fully occupied with orders in hand. SS21 POs are at their final stage of production. Some of which shipment has already been made. AW21 orders have been finalized and POs placed with factories. Developments for SS22 are in progress. Prices have been firm due to increase raw material prices. Sustainability along with human rights concerns remained an important element for most of the customers under the topic of “sustainable corporate governance”.


Local yarn prices were soft and stable due to drop down in NYCF. Buyers booked the yarn only for urgent requirement. PSF prices trend was upward and further rise is expected in coming days.

In the local cotton market, sluggish business trend was observed due to high asking by ginners also downward international trend kept the buyers away from buying. Overall business disturbed due to uncertainty among ginners and textile mills regarding import of cotton and cotton yarn from India.

Local fabric market is expected to remain firm and we are not foreseeing any sharp downward trend therefore suggest cautious stance in current circumstances.

Market remained under nominal business activity for export yarn due to expectations of correction in prices. suppliers showed flexibility in asking their prices and some deals were finalized where customer achieved their desired price levels.

Export fabric business situation will remain good in coming days and prices will remain stable at current level for some time.

Garment factories have orders in hand which has filled their production capacities till June. New inquiries have been offered with a lead time of ninety days to hundred and twenty days depending upon the type of product and order size.

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

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