Market Report- Pakistan 29th March 2022


During the last week the local cotton market remained dull due to the non-availability of cotton. Few ginners had cotton with them but in limited quantity and were selling at higher prices. Although our local cotton season was over almost 2 months ago and very limited cotton arrival was observed. During this season all the stakeholders of cotton from Fashion to Field earned a lot of profit, especially the farmers who got a good price of Phutti.

Overall textile sector showed positive results as bullish trend prevailed in the international cotton market and due to Covid-19 textile sector got export orders due to which the rate of cotton increased.

In the local cotton market, prices remained firm to upward this week due to the fewer stocks available with ginners. KCA was the same at the level of Rs.20,000 per maund. The local cotton market prices were between Rs 18,800 ~20,800 per maund.

However, in international markets prices showed upward trend. NYCF crossed 136 American cents per pound last week, which is at the highest level in eleven years. It is hinted that it will increase further. Although, this year the production of cotton is nineteen lac bales more than last year’s production the rate of cotton in both local and international markets has already been doubled.

According to the USDA weekly export report for the year 2021-22 during the week more than three lac seven thousand bales were sold which is seventeen percent less as compared to last week. China was on number one after buying more than one lac thirty thousand bales; Turkey was on number two with more than seventy one thousand bales while Bangladesh was on number three with more than twenty six thousand bales. For the year 2022-23 more than sixty-seven thousand bales were sold.

The big bull is raging, bellowing, stomping, and begging to be fed. He has furiously charged higher the past three weeks crashing through all overhead price resistance and sailing above price targets. It’s a worldwide phenomenon. India is experiencing record high cotton prices; Chinese prices have moved higher and higher. The same with Brazil.

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 1.26~1.39 Lbs. (18,800~20,800/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 126.00 126.00 0.00
Highest 140.00 139.00 -1.00


Crude Oil prices opened at USD 112.12 with a higher level as compared to last week’s closing figures.

In this week, crude oil showed mixed sentiment in whole weed and fluctuated in both ways, hence closing on the positive side by the end of the week.

On the last day of the week, the Crude Oil prices closed at USD 113.90 with an increase of USD 1.78 cents as of opening figure of week.

  Opening of Week Closing Of Week Change
Price 112.12 113.90 1.78


Last week values of the Pak rupee depreciated against US Dollar, other major currencies showed mix trend in both Interbank and open markets.

At the end of the week, Euro closed on a negative note with a figure of 1.10 and the British Pound also closed on a negative note with a figure of 1.32 against USD.

  Selling Buying
LC Sight 181.64 181.59
LC 120 Days 180.04 179.99
Open Market 184.02 179.88


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

NYCF overall showed upward tendency in a whole week and closed on positive by the end of the week.

On the last day of the week, MAY 2022 closed at 135.90 with upward of 589 points.

On the last day of the week, JULY 2022 closed at 132.35 with a rose of 614 points.

On the last day of the week, OCT 2022 closed at 117.85 with an increase 454 of points.


Liverpool Index A was opened at 138.50 with a higher level of the previous week’s closing figure.

In this week’s Index, “A” showed an extraordinary rise throughout the week and closed on the positive side by the end of the week.

At the last day of the week, LPI “A” closed at 146.75 with an increase of 825 points.

  Opening of the Week Closing of the Week Change
Index A 138.50 146.75 8.25


The local yarn market remained firm in asking prices and limited business made was seen in these price levels. Suppliers were engrossed in selling the yarn whereas buyers are in the perceiving condition right now thus limited activity was done. On the other hand, weavers were forced to buy on these phases as no chance to drop market presently and moderate pressure of sales in the challenging market is impatiently expected if NYCF’s inclination is downward

PSF prices remained stable in the domestic market during last week ended. PTA, MEG prices were firm in the international market and crude oil prices also continued invariable by end of this week. For next week, prices are projected to remain strong.

Faisalabad trading market was again slow and limited activity was seen. Traders were in selling their stocks and loom owners were in a tough position in yarn buying due to a surge in electricity and others overheads. Fine counts demand was the normal and cautious sale of PV/Viscose reported due to 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 3179 – 3292 700 – 725
20/1 CD 3224 – 3406 710 – 750
30/1 CD 3497 – 3656 770 – 805
20/1 CM 3814 – 3928 840 – 865
30/1 PC 52:48 2702 – 3111 595 – 685
40/1 CM 4427 – 4564 975 – 1005
60/1 CM 5903 – 6244 1300 – 1375
80/1 CM 8696 – 9014 1915 – 1985


Export yarn market showed slow activity for another week in a row.

Customers floated limited numbers of inquiries against which order materialization was dull.

Suppliers were actively offering prices and followed the inquiries to get orders however, cotton prices remained upward and kept on adding points on regular basis. This is the only sign in the market that may put an impact on the prices of yarns.

Customers are still under very cautious buying for the reason of slow orders from their end customers. Most of the customers are still indecisive whether they should place an order at current prices or should wait for some time to get a better deal.

If we overall analyze the market conditions, cotton is bullish, has no impact on yarn prices, buyers are silent and all these factors have made the market dull and slow.

Chinese customers floated good numbers of inquiries against which order materialization was quite slow. Customers remained in the market and placed orders only where they received desired price levels.

European customers remained on the sideline. Very limited numbers of inquiries were floated against which business activity was almost nil. They are still expecting a decline in prices which was the reason for slow business activity.

Count USD / Bale
16/1 CD 675 – 680
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


The local fabric market remained dull for another week and negligible trading was reported during the week for both narrow and wider width fabrics.

Weavers started chasing inquiries but local finishers remained sidelined and did not share bulk inquiries owing to the prevailing uncertainty in international and local cotton markets.

As a result, insignificant business materialization was reported in the market. Buyers remained confused due to the geopolitical situation around the globe and therefore opted to remain sidelined and wait for the right time to start fresh buying.

Though weavers reduced their inflows to capture the floating orders, buyers bid 4%-5% lower and resultantly, weavers could not materialize available orders.

Currently, weavers are booked in narrow width looms till the end of April’22 and also have coverage of their wider width looms till early May’22 ~mid-May’22 and offering 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 1.80 – 1.82
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.34 – 1.36


Far Eastern markets remained mixed. Korean customers have exchanged some inquiries but could not finalize the orders due to slow demand. Chinese customers did not show interest of buying due to bad covid situation over there. Limited number of inquiries received from japan, Bangladesh, Vietnam and Indonesia but no considerable buying was witnessed.

Asking prices were increased about 2~3 % due to much increased of NYCF however suppliers are able to
negotiate prices at last week level to get the orders.

Suppliers are booked till end of April and offering early ~Mid May onward deliveries. Some of the suppliers are able to offer some partial quantities even by end of April as well.

Flow of inquiries was better from European customers compared with last week but only limited booking was made with selected suppliers.

Current market is very confusing hence most of the customers could not decide rather to place the orders or wait for some more time.

Wider width suppliers are also chasing orders now due to slow market sentiment and offering May 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 1.62 – 1.64
16X12/108X56 63″  3/1 1.78 – 1.80
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.32 – 1.34


Home Textiles overall situation is on the slow side as inquiry flow and order situation is same as per last 2-3 weeks. Due to uncertain political situations worldwide customers are reluctant to purchase as all customers are reviewing the situation of Russia and Ukarine War. US Market Week is finished and there are good number of orders finalized, even some commitments for upcoming months also confirmed with different 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.


The garment industry of Pakistan is showing immense growth in some months. Overall raw material prices fluctuate on a daily basis. This cause a lot of confusion in customers’ mind before placing an order.

However, factories are having enough amount of orders at their facilities, and they are offering Mid-June
onwards deliveries, at the same time dyeing units fully occupied and this is also a reason factory offering
deliveries Mid-June onward. Some leading manufacturers 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.

Due to the current situation, inflation, and war in Russia, customers are quite nervous as the market situation in the EU and UK is quite uncertain. However, we assume that the situation could cool down in the coming weeks and business took hold. in a better way.


Chinese Lockdown Threatens 600% Freight Rates Spike As Panic Sweep Across Supply Chains: Freight
rates are spinning out of control as ports remain extremely congested in the U.S. and China. Right now,
the average shipping rate for a 40-foot container leaving Shanghai to Los Angeles is 125% higher than a
year ago, sitting at nearly $12,000 per container. The Russia-Ukraine crisis is also significantly impacting the flow of goods around the planet. Russian forces are cutting off entire shipping routes and shipping companies are suspending services, which is fueling even sharper freight rate hikes, supply chain firms said. Freight rates for a container ship have skyrocketed, with a spike from 157% to 591% since the conflict began. The situation is triggering an even worse labor crunch. Considering that 198,123
seafarers are Russian, while Ukraine accounts for 76,442, 15% of the world’s seafarers come from the two countries, and with crew movement pretty much impossible out of both nations, shipping
companies are having to extend these workers’ current contracts to fill any immediate gaps. Over the
past two weeks, the average U.S. price of a gallon of gasoline shot up a staggering 79 cents to a record-setting $4.43 per gallon. For truck drivers running with diesel engines, the increase has been even more
pronounced, climbing $1.18 over two weeks, to $5.20 a gallon. Diesel is now $2.11 more expensive
than one year ago. The increase is likely to raise our overall cost of living given that the vast majority of
the products we buy get delivered by big trucks, which cost a lot more to operate.

Ukraine war altering global economy; escalating inflationary pressure: Russia’s invasion of Ukraine has
significantly altered the global economic backdrop through three main channels: high input costs and
consumer inflation over an extended period due to spike in commodities prices; risks due to financial
and business disruption; and the economic costs associated with heightened security and geopolitical


About the future market, it is foreseen that local yarn prices will be conferring to local cotton prices and
international trend of NYCF, the raw material factor will regulate 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.

Considering the futures trading in the international markets, the price of local cotton in the coming season will also be higher than that of other crops. It seems that the market will remain firm to upward due to the international demand for cotton all over. Investor seems taking a lot of interest in the cotton market, which means that market will not drop in the coming days.

Going forward, we may forecast an upward trend with slight trading fluctuations in local fabric market due to the prevailing current geopolitical situation.

The export yarn market showed dull and slow business activity despite the presence of a good number of
inquiries. Suppliers are interested to close business with every customer who is showing serious interest even with low bids. However, a good number of inquiries are under discussion and we might see business confirmations in days to come.

Export fabric market remained mixed with limited business activity. Prices were softened about 1~2% to attract buyers. It is expected that business may pick up again because of continuous rise in NYCF which may push the customers to take buying decision.

The general situation of the garment industry is not clear due to the turbulence of the world situation.

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