Market Report -Pakistan 23rd March 2021


Last week in local cotton market, bearish business activity was seen, buyers didn’t show interest in expectation that prices may drop in coming days due to the downward trend in international prices. it seems that activity will remain moderate in coming days as most of the buyers are in wait and watch mood.

In local cotton market, price of cotton remained soft due to the low business trading, business remained very low in the range of 11500 to 12500 per maund. KCA closed at the level of 12300/maund by the end of week with no change. Fluctuation was seen in rate of cotton in international cotton market but up and down was witnessed in the price which was in between 83 to 86 American cents.

International cotton market witnessed over all bearish trend. Fluctuation was witnessed in the rate of New York Cotton. It seems that New York Cotton will remain between 83 American cents to 86 American cents. Other than that, according to USDA weekly export report there is an improvement in exports as compared to last week. This week Vietnam was number one with one lac thirty-five thousand bales, China is on number two and Pakistan is on number three. This means that China is continuously importing American cotton. Other than that, the rates of cotton in decreasing trend were witnessed in Brazil, Argentina and Central Asia. In India sometimes the rate increase by Rs. 100 per candy and sometime decrease by Rs. 100 per candy. Over all the rate of cotton remained stable in India.

According to a fortnightly report of Pakistan Cotton Ginners Association (PCGA) released on Thursday, exactly 5,639,035 bales have undergone the ginning process i.e. converted into bales. Cotton arrivals in Punjab were recorded at over 3.5 million or 3,507,356 bales while Sindh generated just over 2.1 million or 2,136,169 bales.

The price of cotton in Sindh is in between Rs. 11,200 to Rs. 12,000 per maund. The price of Phutti in Sindh is in between Rs. 4000 to Rs. 4800 per 40 kg. The price of cotton in Punjab is in between Rs. 11,500 to Rs. 12,500 per maund. The price of Phutti in Punjab is in between Rs. 4800 to 6000 per 40 kgs. The price of Phutti in Overall prices of cotton were in the range of USC 87~97 Lbs. (11200~12500/ maund).

Opening Of the Week Closing Of the Week Change
Lowest 88.00 90.00 2.00
Highest 100.00 98.00 -2.00


Crude Oil prices opened at USD 65.39 with lower level as compared to last week closing figures.

In this week, crude oil prices showed downward trend, while rose on close but still closed on negative side at the end of week.

In last day of the week, Crude Oil price closed at USD 61.42 with decrease of USD 3.96 cents as of opening figure of week.

Opening of Week Closing Of Week Change
Price 65.39 61.42 -3.97


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 1.39 against USD.

Selling Buying
LC Sight 155.53 155.48
LC 120 Days 155.25 155.20
Open Market 157.56 153.95


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

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

At last day of the week, MAY 2021 closed at 84.68 with downward of 206 points.

At last day of the week, JUL 2021 closed at 85.72 with drop of 204 point.

At last day of the week, OCT 2021 closed at 83.03 with decrease of 113 point.


Liverpool Index A was opened at 94.00 with higher level from previous week’s closing figure.

In this week Index “A” showed downward sentiment except on one of 2nd last session, and closed on negative side by then end of week.

At last day of the week, LPI “A” closed at 92.25 with the decrease of 175 points.

Opening of the Week Closing of the Week Change
Index A 94.00 92.25 1.75
Index B 0.00 0.00 0.00


Local yarn market saw a firm trend. A reflection of previous week was extended to this week as well. A slight drop of prices in running counts was witnessed. A drop in NYCF by 1 cent was also seen this week. Market correction can be accredited to various reasons, including drop in Chinese demand for Siro yarn. Similarly, a drop of $5 in crude oil since last week also indicate a corrective speculation in coming times for PSF.

Faisalabad trading market remained slow and traders remained hesitant in bulk trading.

Count Price in Pak Rupees / 10 LBS Price US$/Bale
16/1 CD 2294 – 2390 590 – 615
20/1 CD 2411 – 2527 620 – 650
30/1 CD 2760 – 2877 710 – 740
20/1 CM 2820 – 2897 725 – 745
30/1 PC 52:48 2119 – 2352 545 – 605
40/1 CM 3441 – 3597 885 – 925
60/1 CM 4744 – 4996 1220 – 1285
80/1 CM 5949 – 6202 1530 – 1595


Export yarn market remained under lethargic business activity as customers remained silent and didn’t show any business activity.

Very limited numbers of enquiries were floated against which orders confirmations remained dull and slow.
Suppliers are under flexible tone and want to sell orders with any firm bid in hand.

Prices have been dropped by suppliers due to continuous declining trend of cotton in international market. This has pushed suppliers to drop their prices.

At the same time, customers from China and other Far Eastern countries are in silent mode and expecting further decline in prices.

This is not a good sign for suppliers as they have sold huge quantities at quite higher levels and this decline in prices will put their orders in trouble. So, currently, business activity is on halt.

European customers showed improved business activity as they were not following the drastic increase of prices and were on wait and see mode.

However, recent correction in market has given them confidence and they have confirmed orders of normal and specialized items with selected 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 LCs and new orders decision.

Count USD / Bale
16/1 CD 600 – 610
20/1 CD 610 – 620
20/1 CM 650 – 660
16/1 CM 640 – 650
20/2 CD 625 – 635
24/2 CD 655 – 665


The local fabric market remained volatile and showed slight softness in prices because local cotton and yarn prices eased down therefore hint of price correction observed for both narrow and wider width fabrics. Flow of inquiries slowed down as buyers are expecting further downward trend in fabric prices. Buyers booked limited orders as weavers are not ready to negotiate prices below to their desired inflows. Weavers are comfortably booked in narrow width till Mid May end May’21 and in wider width weavers are booked till End May’21 early June’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 1.50 – 1.52
16X12/108X56 63″  3/1 1.64 – 1.66
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.24 – 1.26


After continuous rise in prices, market gets stable now a days hence customers are only checking prices and holding their orders until the market stable further. Customers are expecting further price correction but at the same time spinning units are resisting on lower prices due to shortage of raw material prices.

No considerable buying was witnessed from Far Eastern markets during the week under review.

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

European customers have started placing orders after waiting couple of weeks because of correction in prices and stable market situation.

Good number of inquiries were exchanged during the week resulting good orders placements mainly in wider width for May ~ July deliveries.

Slow business was witnessed from USA market as no considerable business was noticed. Wider width suppliers are booked till end of June and offering July onward deliveries. Limited quantities are available with some suppliers for June deliveries.

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 1.50 – 1.52
16X12/108X56 63″  3/1 1.63 – 1.65
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.24 – 1.26


Home Textiles market is seeing a dip in prices of 1 to 5% based on the drop in raw material prices or stability in speculation.

Meanwhile many factories are managing their productions for SS21 and AW21, developments for 2022 has also begun where projections are being put forward for the procurement of raw materials seeing shortage of the same in the upcoming months.

Leads time are stretching from 75 to 90 days for new orders and for repeat they stand at 45 to 55 days.


Garment units in Pakistan have been quite busy in working on new inquiries. Tug of war kind of situation was observed while negotiation for prices between customers and suppliers as; suppliers were reluctant to reduce prices as per customer’s targets. However business was materialized after tough negotiations. Buyers from US and EU continued buying despite lock down situations in most markets as they anticipate quick sales once consumers come to the markets once resumed.

Globally brands kept focusing on sustainable products for environment safety. UK government has also unveiled its plans to reduce waste and will hold suppliers accountable for textile waste not properly taken care of. The European Parliament has issued a report which calls for attention on the European Commission to propose legislation that push garment manufacturers to fix human rights and the environmental issues in their supply chain.


Local yarn business remained average during the week and prices are expected to take further downward curve in next weeks.

In the local cotton market, prices were soft due to thin business activity, most of buyers were away from buying, they are expecting that internationally prices may drop further in coming days. Most of buyers are in wait and watch mood.

We expect that local fabric market still have the tendency to stay at current level or move upward but New wave of covid19 may play a crucial role in setting market direction for coming weeks.

In export yarn, market showed dull and slow sentiment with minimal numbers of enquiries. We might see another wave of slow business activity in the month of March before market is get settled at logical price levels.

Export fabric business witnessed improved during the week after some price correction. It is expected that business activity will pick up further in coming days and prices may remain in same range with minor fluctuation due to good orders in hand with the suppliers.

Healthy wave in business materialization was observed in garment industry of Pakistan. Prices have been firm due to increased raw material prices. On average factories have space to offer deliveries from July onward.

Home Textiles market will experience stability if the raw material prices keep coming down in the next few weeks. Route to handsome order confirmation is expected in the coming months.

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