Market Report -Pakistan 25th May 2021


Last week in the local cotton market, the sluggish trend remained continued in the local cotton market after Eid, and trading volume remained very thin; it seems that the situation likely to be improved in the month of June/early July after starting off the new season.

The Prices remained firm on the same levels because of slow business activity and the KCA spot rate also closed on the same level at 11300/maund. The price level was at the level of Rs 10500 to 11500 per maund. The Phutti trading of the new season started in the local cotton market as the market opened after two weeks after the Eid holidays.

After the Eid holidays with the partial arrival of Phutti for the season 2021- 22, the trading for the new season has started in the cotton market. Until now buying and selling of Phutti from the areas of Sindh which includes Badin and Gharo were recorded. Ginning factories of Punjab bought Phutti at the rate of Rs 5300 to Rs 5500 per 40 Kg. Two ginning factories of Sanghar will partially start their operations from the 1st week of June. According to the information received,  the sowing of cotton in the cotton production areas of Sindh and Punjab is satisfactory. It is also pertinent to mention here that the Federal Committee on Agriculture has fixed white lint production target for the country at 10.5 million bales from an area of 2.33m hectares for the 2021-2022 season, almost double over the previous year. Punjab is to sow the crop on 1.6m hectares of land to produce 6.07m bales.

Most of the buyers are focusing on the import of cotton due to the availability and viability, less stock of local cotton is left with ginners therefore leading buyers are taking interest in the import of cotton.
During the Eid holidays, the rate of cotton in the international cotton market especially the rate of New York Cotton which was 88 cents per pound, after decreasing reached 82 cents per pound. In the meantime, some buyers have made new deals. Private importers told that during the Eid holidays deals have been made for the import of 150,000 to 200,000 bales.
The price of cotton in Sindh is between Rs 10,500 to Rs 11,000 per maund. The price of Phutti in Sindh is between Rs 5000 to Rs 5300 per 40 kg. The price of cotton in Punjab is between Rs 10,500 to Rs 11,500 per maund. The price of Phutti in Punjab is between Rs 4800 to 6000 per 40 kgs. The price of Phutti in Overall prices of cotton were in the range of USC 83~91 Lbs. (10500~11500/ maund).

Opening Of The Week Closing Of The Week Change
Lowest 83.00 83.00 0.00
Highest 91.00 91.00 0.00


Crude Oil prices opened at USD 66.27 with a higher level as compared to last week’s closing figures.

In this week, crude oil prices showed a downward trend and closed on the negative side at the end of the week.

On the last day of the week, the Crude Oil prices closed at USD 62.05 with decreases of USD 4.22 cents as of the opening figure of the week.

Opening of Week Closing Of Week Change
Price 66.27 62.05 -4.22


Last week values of the Pak rupee slightly depreciated against the US Dollar’s, other major currencies showed mixed trends in both Interbank and open markets.

At the end of the week, Euro closed on a positive note with a figure of 1.22 and British Pound also closed on a positive note with a figure of 1.41 against USD.

Selling Buying
LC Sight 153.46 153.41
LC 120 Days 152.90 152.85
Open Market 155.49 151.92


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

NYCF showed mix trend this week and closed on the positive side by the end of the week.

On the last day of the week, MAY 2021 closed at 82.82 with upward of 50 points.

On the last day of the week, JUL 2021 closed at 83.64 with a rose of 135 points.

On the last day of the week, OCT 2021 closed at 83.22 with an increase of 151 points.


Liverpool Index A was opened at 90.15 with a lower level from the previous week’s closing figure.

In this week Index “A” mix trend was seen, moreover closed on the negative side by the end of the week.

On the last day of the week, LPI “A” closed at 88.95 with a decrease of 120 points.

Opening of the Week Closing of the Week Change
Index A 90.15 88.95 -1.20
Index B 0.00 0.00 0.00


The local yarn market remained stable with good business activity during last week ended. Prices were the same in asking and buyers booked yarn against their sold fabric orders. Activity in 30/1cd and above was good and coarse counts were in average demand. Currently, no mill has carrying yarn stock and has sold till mid-June 20201.

PSF prices remained stable during last week ended. PTA, MEG prices, and crude oil prices remained stable in the international market. For next week, prices are expected to remain soft and stable.|

Faisalabad’s trading market was average in buying and limited trade was made in all counts of cotton yarn. Fine counts demand was slow due to the end of the season and viscose yarn demand being started due to starting of the season sharp after Eid. Blended yarn and PV yarn prices were also stable and the good sale was reported in all counts.

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

Count Price in Pak Rupees / 10 LBS Price US$/Bale
16/1 CD 2148 – 2244 560 – 585
20/1 CD 2244 – 2398 585 – 625
30/1 CD 2724 – 2781 710 – 725
20/1 CM 2666 – 2743 695 – 715
30/1 PC 52:48 1918 – 2091 500 – 545
40/1 CM 3510 – 3606 915 – 940
60/1 CM 4661 – 4911 1215 – 1280
80/1 CM 5947 – 6081 1550 – 1585


Export yarn market remained under limited business activity from all regions. Customers kept on checking prices but order materialization was dull. Suppliers remained firm and stable to catch any opportunity from the customer end.

The cotton prices in the international market showed a continuous decline it didn’t put any major impact on local prices of yarn due to the comfortable sales position of suppliers.

The very important point is to be noted that the old crop for the season 2020-2021 is almost finished. Now new crop 2021-2022 arrival is expected to be started in July for which few deals have been materialized but cotton prices are PKR 12500 which is quite on the higher side as compared with the previous season.

If cotton prices for the new crop remain in this range, yarn prices will show a handsome increase in days to come.
It is expected that the market will remain firm and stable with a tendency to improve further.

Chinese customers are in the market and trying to book quantities as much as they can. However, suppliers are not showing any flexibility and under firm and stable sentiment.

European customers have also floated handsome numbers of inquiries and we might see another phase of buying for the July onwards delivery.

Count USD / Bale
16/1 CD 590 – 600
20/1 CD 600 – 610
20/1 CM 640 – 650
16/1 CM 630 – 640
20/2 CD 615 – 625
24/2 CD 645 – 655


In the current week under review, the local fabric market remained firm and slow throughout the week for both narrow and wider width fabrics.

Finishers floated inquiries in limited numbers. Though weavers kept their initial asking prices firm, however, weavers also booked orders after tough negotiations but at a slightly reduced-price level as compared to last week’s level. Buyers are still forecasting bearish sentiments in the coming weeks and therefore booking only their urgent requirements.

Major weavers are booked till 3rd week June~ end June in narrow width and also covered their wider width looms till 3rd week July ~ end July’21 and offering onward deliveries respectively.

Local fabric prices of regular items are as follows:

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.47 – 1.49
16X12/108X56 63″  3/1 1.58 – 1.60
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.17 – 1.19


Far Eastern customers are not buying much fabric nowadays. They are waiting for a further price reduction before taking any buying decision. Limited orders were placed by Chinese customers however good business activity was seen from Bangladesh as handsome quantity was sold by the suppliers during the week. Other Far Eastern markets remained almost quiet.

Asking prices were soft due to soft yarn prices. Suppliers were interested to discuss 2~3% lower targets than the offered prices.

Currently, good suppliers are booked till the end of June and offering mid-July onward deliveries whereas average suppliers are still offering end June ~Early July onward deliveries for narrow width fabrics.

Improved business activity was seen in European markets. Active buying was witnessed by Italian customers. Netherland, Spain, and German customers were also active however limited buying was reported.

USA buyers were not active during this week as no bulk buying was witnessed. Wider width prices are soft about 3~4% due to the stable and soft market situation. Wider width suppliers are booked till the end of July and offering August onward 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 1.42 – 1.44
16X12/108X56 63″  3/1 1.54 – 1.56
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.18 – 1.20


In the bedding and towels market, the exporters are booked with a reasonable amount of orders. The prices have remained at stable levels and buyers are actively placing their replenishment orders, especially from the North American side where volumes are being experienced more towards basic to medium counts especially in cotton.

Thank the local cotton rates remaining stable, though at still high levels! The current price has still given an advantage to foreigner placements with neighboring markets delaying their productions due to the fast-spreading COVID-19 wave, which is disrupting the supply chain. Whereas this has put Pakistan to an advantage which has to remain comparatively open it has been delivering since the last major lockdown in 2020.

The new orders are being delivered in a minimum of 120 days! And repeat orders stand at 75 days.


Pakistan’s readymade garments industry has observed tremendous growth in the recent past. Inquiries flow have been normal and order finalization was also recorded which have filled factories’ production space till mid-September 2021 on average. Lead time is being offered from the end of September on average, however, it also varies on a case-to-case basis. From the main importing regions for garments around the globe, the US has been on the top from buying point of view of Pakistan as demand has increased.

Overall readymade garments export surged by 12.56 percent, from USD 2,231.697 million to USD 2,512.021 during the first ten months of the current fiscal year as compared to the corresponding period of last year on a year-on-year basis (YoY).


About the future market, it is expected that local yarn prices will be determined according to NYCF. Further yarn price trends will be according to the demand and supply of different yarn counts which will lead to the price level.
The local fabric market is expected to carry the same trend however not foreseeing any sharp decline, therefore, suggests not to hold buying.

The market showed good activity in export yarn as customers and suppliers remained busy in discussions. Orders were also reported in different regions and prices are under a firm and stable tone.

The local cotton market remained dull, no business activity observed from last 5~6weeks, less stock is behind with ginners and now waiting for the new crop arrival. Leading buyers are focusing on the import of cotton due to easy availability and viability.

Improved business activity was seen in European markets however far eastern sector remains slow except buying from Bangladesh customers. Prices were stable with a soft tone and expected to remain stable in days to come.

For the Garment, with increased consumer demand order influx in Pakistan continues to rise. Factories have filled their production capacities till mid-September and offering onward deliveries. Furthermore, demand will likely increase with easing out on lockdown situations in most of the regions, and factories will get more orders.

Cotton shortage and rising polyester /cotton prices can lead to a reduction in placements but with the next season around the corner, the bedding and towels industry will keep humming in the months to come.

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