Market Report -Pakistan 25th January 2022


During the last week, dullness prevailed in the local cotton market due to the less availability of quality cotton. Buyers are focusing on the import of USA cotton from neighboring countries. Ginners are firm and expecting more profit in the coming days. Around seventy-five lac bales will have to be imported. So far now import agreements of fifty lac bales have already been signed.

In the local cotton market, prices remained firm, international cotton upward trend put an influence on all over the markets. Prices are increasing around the globe. Indian cotton reached around 76000/candy which is the highest ever. KCA also rose 300 Rs. per maund and reached at the level of 19300 per maund on historical increase level. The local cotton market witnessed a bullish trend, the rate of quality remained firm in between Rs 19500 ~20,000 per maund. The stock of cotton is decreasing due to which the trading volume is also on the decrease.

An international company is selling cotton from their stock on daily basis. It seems that after February, cotton will not be available while the arrival of the new crop of cotton will partially start from the end of May. It is expected that cotton farmers will start sowing before time because this year they got a good price of their crop.

Seed cotton (Phutti) equivalent to over 7.3 million or exactly 7,384,040 bales have reached ginning factories across the country till January 15, registering an increase of 34.42 percent as compared to the figures of the corresponding period of last year.

In the international cotton market, New York Cotton Market, the rate of Future Trading after increasing reached 125 American cents, which is the highest in eleven years. This rate is now at 121 American cents due to which textile mills were off and on signing import agreements. On the other hand, local textile mills were distributed due to uncertainty in the rate of the US dollar, as well as, due to the threat of Omicron and delays in shipments. Moreover, the financial crunch is increasing day by day due to an increase in the prices of cotton in the local cotton market.

The price of cotton in Sindh was in between Rs 18,200 to Rs 20,000 per maund while Phutti is almost finished. The price of cotton in Punjab was between Rs 18,000 to Rs 20,000 per maund. The price of Phutti in Punjab was between Rs 7000 to 8100 per 40 kgs.

The price of Phutti was in the range of USC 1.23~1.38 Lbs. (17,800~20,000/ maund).

Opening Of the Week Closing Of the Week Change
Lowest 123.00 123.00 0.00
Highest 138.00 138.00 0.00


Crude Oil prices opened at USD 85.43 with a higher level as compared to last week’s closing figures.

In this week, crude oil rose upward in the next 2 sessions, 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, the Crude Oil prices closed at USD 85.14 with a decrease of USD 0.29 cents as of opening figure of week.

Opening of Week Closing Of Week Change
Price 85.43 85.14 85.14


In last week values of Pak rupee slightly appreciated against the US Dollar’s, other major currencies showed mixed trend 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 British Pound also closed on a negative note with a figure of 1.36 against USD.

Selling Buying
LC Sight 175.31 175.26
LC 120 Days 173.11 173.06
Open Market 178.57 174.54


New York Cotton futures opened with extraordinary higher levels on Tuesday as compared to the previous week’s closing figures.
NYCF rose further in next day, hence then showing a downward trend till the last session and March closed on the negative side, while May and July closed on the positive side by the end of the week.

On the last day of the week, MAR 2022 closed at 120.75 with a downward of 33 points.

On the last day of the week, MAY 2022 closed at 117.98 with a rose of 27 points.

On the last day of the week, JUL 2022 closed at 115.44 with an increase of 78 points.

Opening of the Week Closing of the Week Change
Index A 130.45 137.50 7.05
Index B 0.00 0.00 0.00


Liverpool Index A was opened at 130.45 with a lower level of the previous week’s closing figure.

In this week’s Index, “A” showed an upward trend throughout the week and closed on the higher side by the end of the week.

On the last day of the week, LPI “A” closed at 137.50 with an increase of 705 points.


The local yarn market jumped up again during this week in a row due to an increase in local cotton prices followed by NYCF. Some of the weavers were buying yarn for their urgent needs and were trying to cover against their sold fabric orders. On the other hand, suppliers were in comfortable sale zoon and no one has stock pressure.

PSF prices were Increased by Rs.3/kg by IFL in the domestic market dated 17th Jan 2022. PTA, MEG prices were firm in the international market and crude oil prices also remained stable by end of this week ended. For next week, prices are expected to increase Rs.2~3/kg by next week.

Faisalabad trading market was again slow and limited activity was seen. Traders took some position in last weeks and loom owners were in a tough position due to increase in electricity cost. Fine counts demand was an average and slow sale of PV/Viscose was reported instead of the increase in raw fiber prices.

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 3024 – 3134 690 – 715
20/1 CD 3046 – 3243 695 – 740
30/1 CD 3353 – 3572 765 – 815
20/1 CM 3725 – 3835 850 – 875
30/1 PC 52:48 2564 – 2893 585 – 660
40/1 CM 4142 – 4295 945 – 980
60/1 CM 6004 – 6114 1370 – 1395
80/1 CM 8678 – 8787 1980 – 2005


Export yarn market showed firm and stable sentiment with good business activity. Customer floated handsome numbers of inquiries against which reasonable deals were concluded. Cotton prices showed bullish sentiment till the last trading session which kept the market on the rise. Cotton has touched the highest level after 2011 and still moving on the positive notes.

There is quite a possibility that prices will show further gain in days to come. Suppliers are quite in a comfortable zone and do not show any flexibility in prices to catch orders. On the other hand, customers are in the market to place orders for their required quantities but a tug of war between supplier and buyer is going on due to a gap in asking and target prices. Deals are going to mature as prices will not show any drop due to high cotton prices.

The most important point now is that customers are left with no option but to book for the reason that, once they leave any deal due to high prices and next time want to book order, they even get much higher rates than previous. So, now, customers are in the market and closing deals with slight negotiations to avoid any further losses.

Chinese customers showed good business activity and placed orders by increasing their prices. if we overall analyze market conditions, it is expected that customers will place orders as cotton price in China is increasing and stocks with traders are depleting as well.

European customers remained active and floated decent numbers of inquiries. Customers have closed orders with slight negotiations with their selected suppliers before prices show a further rise.

Count USD / Bale
16/1 CD 700 – 710
20/1 CD 710 – 720
20/1 CM 790 – 800
16/1 CM 780 – 790
20/2 CD 755 – 765
24/2 CD 820 – 830


In the current week under review buyers shared a considerable number of inquiries and buyers also booked orders at increased price levels due to an increase in yarn prices for both narrow and wider width fabrics.

Buyers actively shared inquiries owing to the continuous rising trend of cotton and yarn prices. Approximately 3%~4% price increment observed in fabric market and buyers were forced to book held orders to avoid further losses and reserve their looms space, resultantly week closed with good trading activity.

Weavers now have coverage of their narrow width looms till end-March ~ early April’22 and also covered their wider width looms till mid-April ’22 and offer onward deliveries.

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.65 – 1.67
16X12/108X56 63″  3/1 1.82 – 1.84
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.36 – 1.38


The flow of inquiries increased from Far Eastern customers resultant booking with limited quantities having 2~3% rise in target prices.
Prices got further firm towards the end of the week due to an increase in raw material prices. Suppliers have good sales and offering end March ~ mid-April onward deliveries.

There was improved business activity from Europe and USA markets. Customers have exchanged bulk inquiries and booked the orders as well with improved target prices both in narrow and wider width fabric.

Workwear items business remained slow with European customers as the prices seem higher as compared to customer idea prices.
Wider width suppliers are booked till mid of April ~ end of April and offering May shipment mainly.

Following were closing rates based on CNF Far Eastern markets.

Construction Price US$/YD CNF Far East
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.64 – 1.66
16X12/108X56 63″  3/1 1.80 – 1.82
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.34 – 1.36


In-Home Textiles inquiry flow has increased significantly and customers are placing orders especially from the European side. From the USA currently, there are not many placements as they are buying Flannel currently and for this prices are very aggressive from India. Australian region is only buying urgent orders as there is a lockdown in Australia so demand is slow Factories are interested to confirm the business and ready to meet realistic targets for the business.

The manufacturers are concerned due to increasing prices of Cotton, Polyester, and Raw materials. Mid and low-tier factories have space in their factories for new orders but have fewer bookings but upper-tier factories are relatively happy with their bookings as they have projections for the next 4-6 months.


Overall Pakistan Garment sector is busy executing their orders which were booked in the last quarter of 2021. Factories are happy with booking and somehow most of the factories are running more than their capacities. Many factories are increasing their setups which include, dyeing capacities, stitching units, and knitting machines. Inquiry flow is getting better as compared to the last week and customers floating serious inquiries in the market. It turned out that the deal went through and the customers accepted the price premium after tough negotiations. Factories are offering delivery from March-22 onward.

So far, apparel manufacturers have been quite successful in carrying developments for the SS22 season and bulk orders are on the way for the season. For FW22 placements have been made by the customers and raw materials and fabrication are in the process to execute orders on time. Luckily, the factories also receive developments for the SS23 and have started working on it.


About the future market, it is expected that Local yarn prices will be 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.

In this week, local cotton remained firm as our season is almost over. International cotton showed an upward to firm trend, therefore around the globe upward trend of cotton was observed. It seems that cotton will remain firm to upward and due to the demand prices will not drop.
Going forward we expect that the local fabric market may remain firm and still have the tendency to move upward owing to the flow of inquiries available in the market.

The export yarn market showed good activity as customers floated handsome numbers of inquiries against which decent quantities orders were placed. It is expected that the market will remain firm and stable and deals will continue to close.

A good flow of inquiries and orders were noticed in Export fabric markets from the Far East, EU, and USA at increased prices by 2~3%. The fabric prices further gain about 2~3% due to continuous rise in raw material prices. It is expected that business activity will remain good in days to come as well.

For Garment, currently, the general mood in the apparel industry is improving quite a bit and future bookings are expected for SS23 in mid-2022.

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