Market Report- Pakistan 5th April 2022


During the last week in the local cotton market, dullness prevailed due to fewer cotton stocks available with ginners. Though some ginners had still limited stock of cotton of the low quantity, they were demanding high rates.

In the local cotton market, prices were remained firm this week because of no business. Although, KCA rose 500 rs and reached a level of Rs.20,500 per maund. The local cotton market prices were between Rs 18800 ~ 20,800 per maund.

Generally, there was almost no business activity in the country due to prevailing political uncertainty. The trader community is not showing any interest in transactions because of the uncertainty. Moreover,
there is a financial crunch in the market. Ramadan has already started. Usually, there is hustle and bustle in the market these days but presently the market is lackluster.

There is uncertainty in the market also due to the high rate of inflation.

It is pertinent to mention here that it is expected that next year the production of cotton will increase but according to the information received from the lower areas of Sindh, it is estimated that sixty percent of the cotton production may be affected due to acute water shortage.

In this situation, it is suggested that concerned departments should take immediate action; otherwise, cotton production will be severely affected. According to the sources in these areas,’ the wheat crop was also affected due to water shortage. It is demanded that steps should be taken to end the water crisis in the cotton-growing areas. Moreover, the availability of DAP and energy should be ensured at suitable rates.

Bullish trend prevails in the international cotton market. A fluctuation of three to four cents was observed in the rate of Future Trading of New York Cotton. According to the weekly export report of USDA two lac thirty-four thousand bales were sold which is twenty-four percent less as compared to the sales of last week. China was on number one buyer with one lac seventy-seven thousand bales; Vietnam was number two with more than twenty thousand bales while Turkey was number three with more than thirteen thousand bales.

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 1.25~1.38 Lbs. (18,800~20,800/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 126.00 125.00 -1.00
Highest 139.00 138.00 -1.00


Crude Oil prices opened at USD 105.96 with a higher level as compared to last week’s closing figures.

In this week, crude oil rose in the next three sessions and later dropped till closing, hence closed on the
negative side by the end of the week.

In last day of the week, Crude Oil prices closed at USD 99.27 with a decrease of USD 6.69 cents as of opening figure of week.

  Opening of Week Closing Of Week Change
Price 105.96 99.27 -6.69


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

At the end of the week, Euro closed on a positive note with a figure of 1.10 and British Pound also closed on a positive note with a figure of 1.31 against the USD.

  Selling Buying
LC Sight 183.37 183.32
LC 120 Days 181.69 181.64
Open Market 185.79 181.62


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

NYCF fluctuated both ways in a whole week and closed on negative by the end of the week.

On the last day of the week, MAY 2022 closed at 134.55 with a downward of 452 points.

On the last day of the week, JULY 2022 closed at 130.93 with a drop of 438 points.

On the last day of the week, OCT 2022 closed at 116.72 with a decrease 132 of points.


Liverpool Index A was opened at 147.75 with a higher level than 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.

On the last day of the week, LPI “A” closed at 156.55 with an increase of 880 points.

  Opening of the Week Closing of the Week Change
Index A 147.75 156.55 8.80

Pakistan Yarn Market

The local yarn market stayed firm from the start of the week due to NYCF cross over one dollar 40 cents and restricted business was seen with sales pressure in these upscale price stages. Suppliers were immersed in vending the yarn although buyers are in observing condition. PC yarn was stable and vendors were concerned to book bulk orders. On the other hand, weavers were forced to buy on these segments therefore limited activity was done.

PSF prices were increased by Rs.3/kg dated 28th March 2022 IFL in the domestic market due to exchange rate and Pak Rupee depreciation. PTA and MEG prices were secure 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 unhurried and partial activity was seen. Traders were in selling their stocks and loom owners were in a tough position in yarn attaining. Fine counts demand was the normal and restrained sale of PV/Viscose reported due to increased raw fiber prices.

The followings are recent querying prices of yarn in the local market based on ex mills:

Count Price in Pak Rupees / 10 LBS Price US$/Bale
16/1 CD 3163 – 3255 690 – 710
20/1 CD 3186 – 3347 695 – 730
30/1 CD 3438 – 3599 750 – 785
20/1 CM 3759 – 3920 820 – 855
30/1 PC 52:48 2590 – 3003 565 – 655
40/1 CM 4378 – 4493 955 – 980
60/1 CM 5593 – 6143 1220 – 1340
80/1 CM 8573 – 8893 1870 – 1940


Export yarn market showed lackluster business activity for another week in a row. Customers floated limited numbers of inquiries against which order confirmation was dull. Suppliers were actively offering prices and followed the inquiries to get orders.

On the other side, 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.

However, customers are still very cautious about buying for the reason of slow orders from their end customers. Customers are expecting a slow phase in the next couple of weeks due to dull market conditions.

If we overall analyze the situation, we might see improvement in business activity in the month of April as customers are now working on new developments as stocks of yarn are depleting.

Chinese customers floated good numbers of inquiries against which order materialization was quite good. 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 710 – 720
20/1 CD 725 – 735
20/1 CM 775 – 785
16/1 CM 765 – 775
20/2 CD 835 – 845
24/2 CD 860 – 870


In the current week under review, once again dull activity was observed for another week and, week closed with slow sentiments for both narrow and wider width fabrics.

Though the flow of inquiries improved, business materialization remained very thin as buyers remained
sidelined throughout the week and bidding 5%-6% lower than asking prices. Weavers desperately tried to capture the floating orders but spinners remained firm in their asking. As a result, slow business activity was reported for both narrow and wider width fabrics.

Weavers started reducing their inflows to match buyer’s bids but still they were unable to match buyer’s bids due to continuous rise in international cotton & also due to firm market sentiments in the local cotton market.

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


Improved business activity was seen from the Far Eastern markets as customers have exchanged their inquiries for their regular items however limited business was conducted.

Customers are still anticipating that prices will get further correction so they are waiting for prices to settled down before placing their bulk orders.

Asking prices were soft during the week due to slow demand as well suppliers are eager to get orders.

Currently suppliers are booked their looms till early of May and offering mid May onward deliveries.

Decent number of inquiries were exchanged mainly from Germany, Italy, France and Portugal resulting good quantity of orders were placed during the week.

Suppliers have further softened their prices about 2% to get more orders despite of firm raw material prices.

PC, CVC yarn prices were further increased due to increase in PSF prices during the week however suppliers are offering same price as of last week to get orders.

Wider width suppliers are booked till end of May and offering June 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 1.78 – 1.80
20CDX20CD/108X58 63″  3/1 ”S” TWILL PAK CTN 1.32 – 1.34


Home Textiles overall situation is gradually improving as customers are placing there orders, but flow of
order is still not too high. Due to uncertainty of NYCF, customers are waiting for market to settle and this is the reason high volumes are not being ordered. US big retailers have slowed down their goods lifting from factories as their inhouse stock is not utilized yet.
Good order placements are expected in upcoming months from all around the globe.

There is also a financial crunch developing throughout the textile industry due to slow lifting of goods, vessel congestion and change of payment mode of factories.


Orders from apparel customers kept the garment factories production space filled till June overall on
average and offering July onward deliveries. Raw material prices are showing a firm sentiment, hence
garment manufacturer are also not ready to reduce prices beyond a certain level considering a firm
sentiment of yarn prices from the spinners.

Sustainability remained an important element as most of the customers specially leading global brands required eco friendly product. Pakistani garment factories have got all the necessary set up and compliance requirements to meet as required by customers. Along with sustainable products, customers have shown interest in Special fibers as well as textured fabrics garments. Russia Ukraine war situation seem to be cooled down in future which will ease out customers to take buying decisions confidently as demand is there.


Several countries discuss strengthening bilateral ties: India and UAE have signed the CEPA, to be
operationalized on May 1, 2022, to strengthen bilateral ties, while Canada and UK have launched talks for a new free trade agreement (FTA). Japan’s PM Fumio Kishida visited Cambodia recently to strengthen bilateral relations and Turkey and Uzbekistan are looking to increase trade to $5 billion within a year. Bangladesh and Sri Lanka are also stressing on the early conclusion of preferential trade agreement (PTA).

Russia-Ukraine war to hamper EU’s economy, lower global growth: The Russia-Ukraine war, which has
entered its second month, will impact the EU’s economy as well as lower the global economic growth in 2022. The United Nations Conference on Trade and Development (UNCTAD) recently downgraded its global economic growth projection for 2022 to 2.6 per cent from 3.6 per cent due to the war and changes in macroeconomic policies.


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.

For coming weeks, we expect range bound activity for both narrow and wider width fabrics in domestic

Mix sentiment was observed this week in terms of prices for local yarn, while USA cotton sales showed a
significant drop in prices, which indicates that prices may be softened in the coming days. Hence these prices are not factual. On the other hand, the demand for textile products is slowing down due to an extra hikes in cotton prices.

The export yarn market showed slow business activity despite good numbers of inquiries. Suppliers are
interested to close business with every customer who is showing serious interest even with low bids.

Good numbers of inquiries are under discussion and we might see business confirmations in days to come.

Export fabric trading activity remained mixed and prices were stable with soft tone. It is expected that business activity may remain slow in absence of demand from Far Eastern, Europe and USA markets.

Overall garment factories have orders till June 2022. Further more there is demand from US and EU market and it is expected that customers will confidently place bulk volume orders once war situation between Russia and Ukraine is settled down.

Good order placements are expected in upcoming months from all around the globe in home textile sector. There is also a financial crunch developing throughout the textile industry due to slow lifting of goods, vessel congestion and change of payment mode of factories.

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