Market Report -Pakistan 7th Dec 2021


During the last week, buyers and spinning mills kept on the sideline due to the extraordinary dropped in NYCF, therefore they were away from buying and the activity of business remained dull. Ginners were interested to sell maximum but buyers didn’t respond to them.
In the local cotton market prices were dropped extraordinarily, as derived by the trend of NYCF, around 1500~1800 Rs. per maund. KCA also dropped Rs. 800 and reached at the level of 16700 per maund. Hence, around the global threats of the Omicron virus dropped markets. There is panic among the ginners while textile spinners had stopped buying due to the fear of further decline in the rate of cotton. New York Cotton after witnessing a significant decline of 14 American cents reached 104 American cents.

It is expected that prices of cotton internationally may further decline due to the increasing threat of the Omicron virus. At this time ginners, traders of Phutti, and farmers had the stock of only 0.8 million bales in their hands. The supply of Phutti had almost ended in the province of Sindh while the quality of Phutti is also deteriorating. It seems there will be no problem regarding the sale of cotton because of low production but there will be a problem regarding the price of cotton. The rate of cotton is already high so the ginners were not in favor of stocking the cotton.

This year the cotton season started one month earlier while the season will also end earlier. Textile mills had signed import agreements in very large numbers from abroad and the delivery of imported cotton has also started due to which mills had to pay their due amounts. Due to delays in delivery by textile producers, there is a delay in the payment of cotton yarn.

A financial crisis arises in the market as the limits of the banks are ending. One reason behind this is an extraordinary increase in the rate of the dollar. However, it is expected that 7.5 million bales will be produced while the demand of the mills is around one crore sixty lac bales. In this way, around 7.5 million bales will have to be imported from abroad to fulfill the demands of the local industry.

The Rate of New York Cotton after reaching the highest level of 1.18 dollars then after dipping reached the lowest level of 1.02 American cents. However, as per the USDA export report, more than 300,000 bales were sold which was 90 percent more as compared to last week. This time Vietnam was on top with more than 1 lac forty-seven thousand bales while China was on number second with one lac twenty-three thousand bales while Pakistan was on number third with more than thirty-six thousand bales. Moreover, a bearish trend prevails in India, Brazil, and Central Asian states while in Africa due to the new wave of coronavirus the supply of cotton had almost stopped.

Seed cotton (Phutti) equivalent to over 7.168 million or exactly 7,168,118 bales have reached ginning factories across the country till Dec 1, 2021, registering a 54.22 percent increase compared to the corresponding period last year. Punjab arrival figures stood at 3.67 million or 3,679,016 bales showing an increase of 39.65 percent while Sindh province registered a 73.28 percent surge with a contribution of over 3.48 million or 3,489,102 bales. Exactly 473,527 bales were lying unsold at the ginneries.

The price of cotton in Sindh was between Rs 15,000 to Rs 16,500 per maund. The price of Phutti in Sindh was between Rs 5900 to Rs 6800 per 40 kg. The price of cotton in Punjab was between Rs 15,200 to Rs 16,600 per maund. The price of Phutti in Punjab was between Rs 6000 to 7200 per 40 kgs. The price of Phutti was in the range of USC 1.03~1.15 Lbs. (15,000~16,600/ maund).

  Opening Of The Week Closing Off the Week Change
Lowest 116.00 107.00 -9.00
Highest 127.00 116.00 -11.00


Crude Oil prices opened at USD 69.95 with a slightly higher level as compared to last week’s closing figures.

In this week, crude oil showed mix trend, hence, closed on the negative side by the end of the week.

On the last day of the week, the Crude Oil prices closed at USD 66.26 with a decrease of USD 3.69 cents as of the opening figure of the week.

  Opening of Week Closing Of Week Change
Price 69.95 66.26 -3.69


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 1.13 and the British Pound closed on a negative note with a figure of 1.32 against USD.

  Selling Buying
LC Sight 175.61 175.56
LC 120 Days 173.41 173.36
Open Market 177.86 173.84


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

NYCF showed a downward trend in a whole week, hence slightly recovered on closing but closed on the negative side by the end of the week.

On the last day of the week, MAR 2022 closed at 104.20 with a downward of 721 points.

On the last day of the week, MAY 2022 closed at 102.91 with a drop of 670 points.

On the last day of the week, JUL 2022 closed at 101.01 with a droplet of 558 points.


Liverpool Index A was opened at 127.30 with the same level as the previous week’s closing figure.

In this week’s Index, “A” showed a downward trend and closed on the lower side by the end of the week.

On the last day of the week, LPI “A” closed at 116.50 with a drop of 1080 points.

  Opening of the Week Closing of the Week Change
Index A 127.30 116.50 -10.80
Index B 0.00 0.00 0.00


The local yarn market remained silent and very limited activity was seen. NYCF drop and soft sentiment put pressure on local cotton as well. Suppliers were interested to sell yarn on these levels but very limited sales were reported at declining prices. Mills are sold for a month on the average count and offer onward deliveries.

PSF prices remained stable in the domestic market in the last week ended. PTA, MEG prices were dropped in the international market and crude oil prices also remained soft by end of this week ended. For next week, prices are expected to drop Rs.2~4/kg.

Faisalabad trading market was slow and limited activity was seen. Cash crunch was the main reason for slow trading activity from the last few months. Fine counts were also average 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 2876 – 3029 655 – 690
20/1 CD 3029 – 3205 690 – 730
30/1 CD 3117 – 3402 710 – 775
20/1 CM 3337 – 3512 760 – 800
30/1 PC 52:48 2459 – 2722 560 – 620
40/1 CM 3951 – 4083 900 – 930
60/1 CM 5554 – 5729 1265 – 1305
80/1 CM 8341 – 8693 1900 – 1980


The export yarn market remained under pressure due to slow demand and dropping prices. Customers floated a limited number of inquiries just for price checking and remained aside of buying in anticipation of a further decrease of prices in days to come. It has been noticed that customers are under wait and see mode just to observe the market.

Overall market sentiment is dull due to the continuous drop in cotton prices over the globe. This has created uncertainties in customers’ minds and they have stopped buying for the next orders. However, end of the week, NYCF prices once again started to get stable and showed firm sentiment. We may say that cotton has already taken the correction for 7-8% in prices and now it’s once again getting stable around Usc 105 per lbs.

During this span, suppliers were under pressure but they didn’t drop their prices following cotton due to comfortable sales positions.
It has been noticed that the market is under silent mode and buyers are not showing interest in any kind of buying. If the situation remains the same, we might see a drop in prices.

A positive sentiment after all the correction in prices of cotton is that now, buyers have started to send serious inquiries and we might see orders placements in days to come. Chinese customers remained on the sideline of buying. Although they kept on checking prices there was no order materialization in the market. A major reason for the slowdown in the Chinese market is slow demand from end-users due to limited export orders. We might see things to get normalized in days to come.

European customers were also under nominal business activity. customers are discussing their demand and we might see orders placements in weeks to come before customers leave for holidays.

Count USD / Bale
16/1 CD 675 – 685
20/1 CD 685 – 695
20/1 CM 765 – 775
16/1 CM 755 – 765
20/2 CD 730 – 740
24/2 CD 795 – 805


In the Local fabric market business activity remained flat as bearish sentiment gripped the market for both narrow and wider width fabrics.
Once again local buyers kept themselves away and remained sidelined throughout the week and limited inquiries floated for both narrow and wider width fabrics resultantly limited business materialization observed in the market owing to soft New York future trends throughout the week. Resultantly Local Fabric Market remained clueless throughout the week for both narrow and wider width fabrics though weavers reduced their asking prices by approx. 1~2%.

Currently, major weavers are booked till Mid February’22 for narrow-width looms and covered their wider width looms till the end of February’22 / mid-March’22 and offering onward deliveries.

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.67 – 1.69
16X12/108X56 63″  3/1 1.85 – 1.87
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.38 – 1.40


Due to the soft price trend worldwide, Far Eastern customers are holding their bulk orders. They are expecting that prices will further drop down and they will take buying decision after carefully checking market trend. At the same time, spinning units are not reducing too much in their prices due to good sales coverage.

Asking prices dropped down around 2~3% by the suppliers in accordance with the soft market trend. Some of the suppliers are interested to get orders and looking for reasonable target prices but customers are not sharing their targets at the moment.

Good suppliers are booked till the end of Feb and offer March onward deliveries. Some of the suppliers are still offering End Feb delivery.
European customers are repeating their inquiries to get price updates according to the current market situation. They are also observing soft market trends hence carefully checking prices before taking buying decision.

USA market is active and customers are discussing new orders in the market. Wider width suppliers are booked till the end of March and offering April 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 1.66 – 1.68
16X12/108X56 63″  3/1 1.84 – 1.86
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.36 – 1.38


In-Home Textiles market situation was slow, inquiries flow was slow this week due to new variant of Covid19. Customers from all regions are reluctant to place any new order as they are waiting for market settlement as the downward trend was there the whole week. Prices have softened up slightly due to a decrease in NYCF and also a decrease in inquiries, factories are interested to confirm the business and ready to meet realistic targets.

The manufacturers are concerned due to the recent Omicron Variant across the globe and expect that orders flow will slow down. Depreciation of the Rupee supported the prices, also the decrease in cotton prices but polyester was firm till end of the week.


Pakistan’s apparel industry is functioning with considerable orders in hand. SS22 placements are in production in full swing and fully intact to meet the agreed deadlines. Through sustainability, a flawless storm of innovation and opportunity in Pakistan’s garment industry has been observed. Some of the bigger chemical producer companies are allying with the textile producer so to deliver innovative products to their global customers.

Inquiry flow has been observed a bit slower due to the upcoming Christmas holidays as they are busy concluding their current orders. On the other hand, customers have placed development till FW23. Prices are firm and for upcoming bulk orders, factories are offering March-22 onwards deliveries


The Messe Frankfurt Group has announced cancellation of Heimtextil, the leading international trade fair for home and contract textiles scheduled to take place from January 11-14, 2022, at Frankfurt am Main in Germany. The decision has been taken in view of the worsening pandemic situation in Germany over the past two weeks and the associated restrictions.

Sapphire Textile Mills has partnered with Good Earth Cotton, the world’s first carbon positive and traceable cotton, to introduce a collection of yarns and home interior fabrications. The partnership addresses increasing pressure for the global textile industry to substantiate sustainability claims, reduce environmental impact and take full accountability for fiber choices.


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

For cotton, In this week, NYCF change the business scenario at once and business in cotton almost stopped due to the extra ordinary drop of prices. Local market may remain downward in coming days and buyers will wait and watch. Hence, omicron waive have affected the market lot and dropped all commodities internationally.

Local fabric market remained slow during the week as customers were holding their inquiries due to downward market trend. It is expected that business activity may remain slow for next week as well until the prices are stable.

Export yarn market remained sluggish business activity as customers remained on side line after drop in cotton prices. suppliers are under pressure but they didn’t drop their prices as they are comfortably booked and showing firm sentiment with slight flexibility in presence of firm bids. We might see business activity to resume in days to come.

Export fabric business situation is slow due to drop down in prices. Customers are keeping themselves aside of buying. Prices dropped down about 2~3% during the week and expected that prices may further dropped down in coming weeks due to downward price trend in International markets.

Pakistan’s garment factories are filled with orders till March-22 and globally customers are intended towards sustainable products.
Home textile manufacturers are concerned due to recent Omicron Variant across the globe and expecting that orders flow will slow down. Depreciation of Rupee supported the prices, also the decrease in cotton prices but polyester was firm till end of week.

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