Market Report- Pakistan 15th March 2022


During the last week in the local cotton market, Mills was involved in cautious buying due to high rates of quality cotton while ginners also had a limited stock of cotton.

In the local cotton market, prices were remained firm this week due to the fewer stocks behind with ginners, and internationally prices are not going to drop. KCA was the same at the level of Rs.20000 per maund. The local cotton market prices were between Rs 18800 ~20,800 per maund.

International cotton markets remained stable though there is uncertainty due to Russia and Ukraine
wars. People were also cautious due to political uncertainty in Pakistan. The rate of cotton yarn is decreasing and the financial crunch is increasing in the market. There is uncertainty about the future. It is expected that there would be some increase in the business of garments and textile products at the local level because of Eid and Ramadan but it seems that this year’s business will be slower due to inflation.

After fluctuation in the international cotton market, a bullish trend prevails. At the end of the trading week, the rate of Future Trading of New York Cotton witnessed an unprecedented increase of four cents. According to the USDA weekly export report of the week of 2021-22 three lac fifty-four thousand bales were sold which was two percent more as compared to the sales of last week. China was on number one with more than one lac seventy thousand bales. Turkey was on number second with seventy thousand bales while Pakistan was on number third with more than forty-nine thousand bales. The rates of cotton in Brazil, Central Asia, Africa, and India, overall, remained stable. After a bearish trend for the whole week, a bullish trend prevails in the market after the coming of the news that China has issued a new import quota.

Projected world 2021/22 consumption is marginally higher this month, up 111,000 bales, but with a 1-million-bale increase in the 2020/21 global estimate, March’s projected consumption growth rate is lower this month.

World consumption is now expected to grow 2.1 percent from a year earlier, below the 2.8 percent rate forecast in February. Production is projected lower as a 500,000-bale reduction in India’s crop more than offsets a 150,000-bale increase for Mexico.

The price of cotton was between Rs 18,800 to Rs 20,800 per maund while Phutti is almost finished. The price of Phutti was in the range of USC 1.28~1.42 Lbs. (18,800~20,800/ maund).

Opening Of The Week Closing Off the Week Change
Lowest 128.00 128.00 0.00
Highest 142.00 142.00 0.00


Oil Crude Oil prices opened at USD 119.40 on an extra higher level as compared to last week’s closing figures.

In this week, crude oil showed a downward trend 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 109.33 with a decrease of USD 10.07 as of the opening figure of the week.

Opening of Week Closing Of Week Change
Price 119.40 109.33 -10.07


Last week values of the Pak rupee depreciated against the US Dollar, 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 1.09 and British Pound closed on a
negative note with a figure of 1.30 against USD.

Selling Buying
LC Sight 178.57 178.52
LC 120 Days 177.35 177.30
Open Market 180.89 176.81


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

NYCF fluctuated on both ways, hence rose extraordinary in the last session and closed on positive by the end of the week.

On the last day of the week, MAY 2022 closed at 121.03 with upward of 409 points.

On the last day of the week, JULY 2022 closed at 116.79 with a rose of 409 points.

On the last day of the week, OCT 2022 closed at 108.19 with an increase of 355 points.


Liverpool Index A was opened at 135.55 with a higher level of the previous week’s closing figure.

In this week Index “A” showed downward sentiment, hence rose in 2nd last session but again drop on closing and locked on negative side by the end of the week.

On the last day of the week, LPI “A” closed at 134.05 with a decrease of 150 points.

Opening of the Week Closing of the Week Change
Index A 135.55 134.05 -1.50


The local yarn market continued stable in asking prices. Sellers were engrossed in selling the yarn whereas buyers are in noticing situation right now thus limited activity was done. The raw cotton prices in the Global market followed by NYCF. On another side presently the acute pressure of sales in the challenging market is anxiously expected if NYCF’s inclination is downward.

PSF prices were increased by Rs.2/kg dated 07th March 2022 & over again Rs.5/kg dated 9th March 2022 by IFL in the domestic market. PTA, MEG prices were firm in the international market and crude oil prices also stayed invariable by end of this week. For next week, PSF prices are expected to increase Rs.4~5/kg & yarn rates are projected to remain strong as well.

Faisalabad trading market was again gentle and limited activity was seen. Traders were in selling their stocks and loom holders were at a tough point in yarn buying due to a surge in electricity and other outflows. Fine counts demand was the usual and restrained sale of PV/Viscose reported instead of increased raw fiber prices.

Followings are recent querying prices of yarn in local market based on ex mills:

Count Price in Pak Rupees / 10 LBS Price US$/Bale
16/1 CD 3103 – 3214 695 – 720
20/1 CD 3147 – 3326 705 – 745
30/1 CD 3415 – 3571 765 – 800
20/1 CM 3728 – 3839 835 – 860
30/1 PC 52:48 2634 – 3036 590 – 680
40/1 CM 4330 – 4464 970 – 1000
60/1 CM 5781 – 6116 1295 – 1370
80/1 CM 8527 – 8839 1910 – 1980


The export yarn market remained under limited business activity. Customers have floated some inquiries against which suppliers offered prices with flexible notes. However, there has been limited business confirmed against offered prices.

The situation is very uncertain as customers are not deciding whether to book at this price or not. Some of the customers are still of the opinion that prices will show further pressure in days to come.

At the same time, orders at many origins are on hold due to uncertain situations worldwide.
It has been observed that cotton prices are showing drastic fluctuations which have made customers and suppliers worried to proceed further. The major reason was uncertainty around the globe after Russia- the Ukraine conflict which also put a significant impact on the stock market all over the world.

It is expected that export yarn business activity will resume as suppliers are now showing interest in export due to slow business activity in the local market as well as serious financial crunch due to late payments.

Chinese customers remained in the market and floated handsome numbers of inquiries. Customers are bidding lower against offered prices and did not show any increase to confirm orders. Suppliers are under a flexible tone and trying to grab orders asap.

European customers were also active and floated decent numbers of inquiries. However, they are resisting high asking prices. there is good demand for orders but nothing is finalized yet due to the uncertain situation and continuous decline in prices.

Count USD / Bale
16/1 CD 665 – 675
20/1 CD 675 – 685
20/1 CM 755 – 765
16/1 CM 745 – 755
20/2 CD 720 – 730
24/2 CD 785 – 795


The local fabric market remained slow and dull, therefore thin trading activity was reported throughout the week for both narrow and wider width fabrics.

Local finishers stopped sharing bulk inquiries owing to the prevailing soft trend in international and local markets, resultantly limited business materialization reported in the market.

Buyers are hoping that the market may ease down in the coming weeks so they are waiting for the right time for their fresh buying and also to average out their high level buying.

Weavers remained soft in their asking prices as compared to last week but ready to negotiate further against any firm bid.

Currently, weavers are booked in narrow width looms till the 3rd week of April’22 and also have coverage of their wider width looms till early May’22 and offer onward deliveries.

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 ”S” TWILL PAK CTN 1.63 – 1.65
16X12/108X56 63″  3/1 1.78 – 1.80
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.33 – 1.35


Limited buying was witnessed from Far Eastern customers after the softened price trend and sales pressure from the supplier’s side.

Customers are monitoring the market situation closely and are expected to continue buying in the current market situation.

Prices were further softened about 2% during the week due to softened raw material and NYCF prices.

Suppliers are booked till mid of April and offering End-April onward deliveries.

There was a limited number of inquiries from the European and USA buyers during the week however limited buying was witnessed for urgent orders.

Suppliers are facing problems in arranging the shipments to European ports due to unclear shipping schedules by the shipping lines.

Wider width suppliers are booked till mid of May and offer end-May 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 1.60 – 1.62
16X12/108X56 63″  3/1 1.36 – 1.38
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.30 – 1.32


Home Textiles inquiry flow was slow this week as customers are expecting a decrease in prices. Due to
uncertain political situations, worldwide customers are reluctant to purchase as all customers are
reviewing the situation. There is still around 5-7% difference in customer targets and factories prices
due to which orders placement volume is low.

It is expected for a decrease in prices for upcoming weeks due to low business volumes in hand with factories. The manufacturers are concerned due to low business in hand as factories are running at 50-60% capacities. There is also a financial crunch developing throughout the textile industry due to vessel
congestion and change of payment mode of factories.


In recent months, Pakistan’s garment industry has seen tremendous growth in orders and factories have
generally been stretched. At the same time, dyeing units are fully booked and extended their delivery times due to overselling. As per the current status, due to inflation and the Russian war, customers are quite nervous as the market situation is quite uncertain in the EU. Yarn prices in Pakistan are also getting bearish and orders with knitwear companies are dropping.

Some leading manufacturers in Faisalabad and Karachi have started offering their dyeing capacity to garment producers without in-house dyeing. This is evidenced by customers now showing interest in
sustainability products as well as specialty fibers such as Tencel, Modal, Viscose, Lyocell, and others. Already, customers are also demanding accessories made from recycled material, which we usually use in garments, care labels, hangtags, etc.

The garment industry situation is quite tense due to the Russian war and inflation. However, the situation will become clearer in the coming weeks.


Uzbek Cotton Boycott Ends After Decade-Plus Freeze-Out: A broad coalition of retail trade associations, human rights organizations, and investor groups has called off a decade-plus-long global boycott of cotton from Uzbekistan, citing a breakthrough in the elimination of systematic child and forced labor from the Central Asian nation’s cotton fields. ~Sourcing Journal~

EU extends the scope of sanctions on Russia and Belarus: Building on the wide-ranging and unprecedented packages of measures the EU has been taking in response to Russia’s acts of aggression on Ukraine’s territorial integrity, the Member States of the European Commission have agreed to adopt further targeted sanctions given the situation in Ukraine and response to Belarus’s involvement in the aggression. ~Fibre2Fashion~


About the future market, it is foreseen that local yarn prices will be conversing to local cotton prices and
international trends of NYCF, the raw material factor will control the yarn price accordingly. Further prices tendency will be according to the demand and supply of different yarn counts which will lead to the price level.

The overall cotton market remained firm. Supplies of available cotton and demand were light. It seems that the market will remain firm on these levels with minor changes on both sides. The Covid-19 virus continues to cause major disruptions to our society in general, as well as international supply chains and the worldwide labor force.

The local fabric market remained slow and dull due to soft trends in international and local markets. Customers are waiting for the right time for the booking. The prices may further soften in days to come.

The export yarn market showed sluggish business activity despite the presence of a good number of inquiries. Suppliers are now in flexible mode and we might see order confirmations as the price gap between customers’ targets and suppliers’ offers are not wide anymore. However, customers are only placing orders for limited quantities for urgent needs.

The garment industry situation is quite tense due to the Russian war and inflation. However, the situation will become clearer in the coming weeks.

The Home textile manufacturers are concerned due to low business in hand as factories are running at 50-60% capacities. There is also a financial crunch developing throughout the textile industry due to vessel congestion and change of payment mode of factories

1 Comment

  1. Hammad HassanMarch 17, 2022


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