Market Report -Pakistan 21st September 2021


Last week in the local cotton market, buyers and spinning mills were busy buying in the expectation that prices will not drop further. Historical rise US. Dollar rate and existing sea transportation issues made import prices higher and somehow problematic. Therefore, the import price of cotton is higher than the local cotton prices. However, according to the importers of cotton import agreements of 30 Lac bales have been signed while local textile and spinning mills have to sign agreements for the import of 65 Lac bales. The demand of local industry is around one Crore 65 Lac bales while according to the official estimates 85 Lac bales will be produced in the country. Kind of uncertainty is being observed due to the wide gap in demand & supply and the rising trend of the US. Dollar.

In the local cotton market during the last week, the cotton prices remained firm in levels of 12400 to 13500 rs per maund and no major change was seen. KCA Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 50 per maund and closed on Rs 13250 per maund.

According to the analysts, if the weather conditions remain favorable and there will be moderate rains besides crops are sprayed properly, it is expected that 95 Lac bales will be produced in the country. Cotton production in the country registered a satisfactory increase of 159.2 percent which is around 16.50 Lac bales.

Sindh generated over 1.7 million or 17,26,612 bales, registering an increase of 146.54 pc as compared to the corresponding period of last year when arrivals were recorded 7,00,331 bales.

Seed cotton (Phutti) equivalent to over 2.6 million or exactly 26,86,537 bales have reached ginning factories across the country till September 15, registering an increase of 159.52 percent as compared to the corresponding period of last year.

A mixed trend was witnessed in the international cotton market. The rate of New York cotton is decreased by two American cents. The reason behind it is an increase in the rate of the US. Dollar. The news of hurricanes in the US for cotton-growing areas also had a negative impact. According to the weekly export report of USDA, exports decreased by 37 percent while shipment increased by 53 percent. Interestingly, China is number 1 and Pakistan is number 2.

A mixed trend was seen in the rate of cotton in China, Brazil, Central Asia, Africa, and Argentina. Bearish trend prevails in Indian cotton market due to arrival of new crop. It is expected that the cotton crop will be affected in India due to rains in Gujarat. Although, the Cotton Cooperation of India is active to buy cotton on MSP price in order to save the market from fluctuation.

The price of cotton in Sindh is between Rs 12,200 to Rs 13,400 per maund. The price of Phutti in Sindh is between Rs 5000 to Rs 5700 per 40 kg. The price of cotton in Punjab is between Rs 12,700 to Rs 13,500 per maund. The price of Phutti in Punjab is between Rs 5200 to 5800 per 40 kgs. The price of Phutti in were in the range of USC 0.90~0.98 Lbs. (12,400~13,500/ maund).

  Opening Of The Week Closing Off the Week Change
Lowest 90.00 90.00 0.00
Highest 97.00 98.00 1.00


Crude Oil prices opened at USD 69.72 at the same level as compared to last week’s closing figures.

In this week, crude oil price showed an upward trend, while dropped on closing and closed on the positive side by the end of the week.

On the last day of the week, the Crude Oil prices closed at USD 71.97 with an increase of USD 2.25 cents as of the opening figure of the week.

  Opening of Week Closing Of Week Change
Price 69.72 71.97 2.25


In last week values of the Pak rupee 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 negative note with a figure of 1.17 and British Pound also closed on a negative note with a figure of 1.37 against USD.

  Selling Buying
LC Sight 168.04 167.99
LC 120 Days 167.14 167.09
Open Market 170.29 166.42


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

NYCF rose in the next session, later showed a downward trend till closing, and closed on the negative side by the end of the week.

On the last day of the week, DEC 2021 closed at 92.33 with a decrease of 48 points.

On the last day of the week, MAR 2022 closed at 91.59 with a downward of 37 points.

On the last day of the week, MAY 2022 closed at 91.24 with a drop of 36 points.


Liverpool Index A was opened at 102.90 with a lower level of the previous week’s closing figure.

In this week’s Index, “A” fluctuated on both ways and closed on the higher side by the end of the week.

On the last day of the week, LPI “A” closed at 103.05 with an increase of 15 points.

  Opening of the Week Closing of the Week Change
Index A 102.90 103.05 0.15
Index B 0.00 0.00 0.00


The local yarn market remained under sale pressure another week in a row. Every mill was interested in sales and accepted price correction against prompt payment and lifting. The reason for the correction of cotton prices in the local market last week put pressure on yarn sales as well. Cash crunch was another reason for slow lifting and delay in payments in the domestic market.

PSF prices remained stable during the last week ended in the domestic market. Crude oil, PTA, MEG prices were stable in the international market in the last few weeks. For the next week, prices are expected to remain stable and firm.

Faisalabad trading market was dull and limited activity was seen. Cash shortage was the main reason for slow trading activity. Fine counts were also slow in demand and limited sales of PV/Viscose was reported.

Following are current asking prices of yarn in the local market based on ex-mill terms:

Count Price in Pak Rupees / 10 LBS Price US$/Bale
16/1 CD 2458 – 2584 585 – 615
20/1 CD 2521 – 2668 600 – 635
30/1 CD 2857 – 3046 680 – 725
20/1 CM 2941 – 3088 700 – 735
30/1 PC 52:48 2206 – 2395 525 – 570
40/1 CM 3718 – 3802 885 – 905
60/1 CM 5041 – 5251 1200 – 1250
80/1 CM 6659 – 6827 1585 – 1625


Dullness prevailed in the export yarn market with limited inquiries. Buyers were still on a wait-and-see approach. Uncertainty prevailed as the market is directionless. Customers are expecting that prices will drop in coming days but suppliers are still firm, on the other hand, sea freights are further adding cost gradually which means for export offer prices may not drop.

Suppliers were firm and didn’t drop prices, despite the long silence in the export market. By some means, handsome business activity in domestic yarn market supporting to the spinners. Suppliers are not hurrying in a sale but if the buyers remained silent for the next couple of weeks, the supplier may reduce prices further to sell.

International cotton prices showed softness and increase of dolor vs PKR, which may create pressure among the spinners. But overall, it’s expected that prices will remain on the same levels without any major changes.

Chinese customers were remained silent and didn’t show interest, hence limited activity was seen with the same previous price levels. Buyers booked yarn in the middle of the levels. Silence is prolonged for the last couple of weeks, it’s expected that the Chinese will come back soon to cover their yarn stocks/liquidates.

European customers didn’t show interest and kept on the sidelines; they were in the market for the price checking purpose but didn’t do business. Though, there is still a wide gap in bids and offers due to which business couldn’t materialize. Buyers are expecting that prices will reduce in the coming days that is why they are waiting for the drop in prices.

Count USD / Bale
16/1 CD 695 – 700
20/1 CD 725 – 730
20/1 CM 890 – 895
16/1 CM 835 – 840
20/2 CD 770 – 775
24/2 CD 830 – 835


The local fabric market remained slow throughout the week for both narrow and wider-width fabrics. Buyers floated limited numbers in the market therefore limited order confirmation was observed in the market for both narrow and wider width fabrics.

Weavers offered their initial prices at a slightly reduced price level if compared with last week owing to soft yarn prices. Weavers reduced their asking by approx.: 1~1.50% and are also ready to negotiate to some extent.

Weavers are booked till the end of November for narrow width and also booked their wider width looms till Mid-ecember’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 1.55 – 1.57
16X12/108X56 63″  3/1 1.69 – 1.71
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.27 – 1.29


Since the market prices were soft so Far Eastern customers held their buying and did not book any considerable quantities however they kept on sending inquiries for price checking only. Asking prices were down about 2% due to softness in raw material prices.

Currently, suppliers are booked till the end of Nov and offering Dec onward deliveries. Good flow of inquiries resultant good booking was noticed from European customers especially from Germany, Italy, and Portugal. Limited orders were booked with Spain and UK customers.

USA market was active as customers share their inquiries however they were looking for quick shipments which were not possible.
Wider width suppliers are offering end Dec, Jan onward deliveries.

Following were the closing fabric 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 1.67 – 1.69
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.26 – 1.28


Bedding and Towel’s industry is experiencing a blackout in terms of vessel congestions, which indeed is hurting their cash flows.

A lead time of Air jet quality has stretched to over 120 days for news orders and 80 days for a repeat.

Prices are reserved on discount as the market varies of fluctuation in the coming weeks.


Increased demand from Apparel buyers kept the industry grab orders and fill their production capacities. On average garment factories have orders in hand for deliveries stretching till December and few in January. Some factories have even full-year programs from famous brands of apparel. Fabric dyeing factories for garments are also heavily booked due to a large number of orders in the market. Most of the customers are now switching to sustainable items considering environment-friendly products.


1. Global vessel congestion worsens
2. Bangladesh RMG sector in trouble due to a push for strict safety measures
3. Eurozone GDP recovers quicker than expected after lockdowns


About the future market, it is expected that local yarn prices will remain soft and some correction is expected according to local cotton prices and international trend of NYCF, raw material factors will determine the yarn price accordingly. Further prices trend will be according to the demand and supply of different yarn counts which will lead to the price level.

Improved business activity was seen in the Local cotton market; buyers are trying to cover their stocks. Due to the rising trend of the US. Dollar and shortage of sea transportation make import difficult. Therefore, they are trying to buy local cotton on these levels. Prices are expecting to remain firm in the coming days.

Local fabric is expected to remain at the same pace with slow business activity due to softness in prices where customers kept on waiting for price settlement.

For the export yarn, the activity couldn’t improve and dullness prevailed from the last couple of days due to the vast gap in bids and offers. Sea freight’s cost is hitting all the spinners/buyers which is not expected to settle soon, therefore it seems that suppliers wouldn’t drop prices too much in the coming days.

The export fabric market for the Far East remained silent in absence of demand. Customers are waiting for price settlement before starting placing orders. European and USA markets are active as customers are placing urgent orders. Improvement in business activity is expected in days to come.

The bedding and towels market is experiencing a liquidity crunch whereas the upcoming months look lucrative in terms of order booking.

Increased demand from Apparel buyers kept the industry grab orders and fill their production capacities. Pakistan being a very good source of high-quality fleece remained amongst the top brand’s choices of knitted garments.

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