Market Report- Pakistan 31st May 2022


During the last week in local cotton market, buyers were waited for the arrival of cotton, expected by Mid-June onward. Hence, buyers are discussing about price parameters that how the market will move on as international cotton behavior is much difficult to understand.

In the local cotton market, prices showed an upward trend due to the start of the gradual arrival of new crops and higher prices of international cotton. The price of Phutti is in between Rs10,000 and 11,000 per 40 kg. The price of cotton per maund is Rs. 23,000. KCA also increased rs.1500 in this week and reached at level of Rs.22,500 per maund.

The arrival of Phutti partially started in the local cotton market during the last week. About 1000 bales have been produced. The supply of Phutti has been increasing, gradually. Many ginners in Sindh and Punjab have started buying, which means in the coming days more ginning factories will start operation. Up till now, Phutti is partially coming from the cotton-growing areas of Sindh. It is expected that the
partial arrival of Phutti will soon start from the cotton growing areas of Punjab.

This season will be very difficult for all cotton stakeholders as there are issues of cotton parity with cotton yarn, and moreover, banks have increased the interest rates. In addition, the rate of the US dollar is all-time high and there are issues with containers and shipments, as well. There is a decrease in the demand for textile products in international markets. These are the problems which make the import and export businesses difficult.

After the fluctuations in the international cotton markets, there was a general downward trend. New York Cotton’s Rate of Future Trading for the month of July hovered between 141 and 145 US cents per pound and then closed at 140 cents. According to the USDA’s Weekly Export and Sales Report, sales of 37,000 bales for 2021-22 were sold, which is 67% less than the previous week. India topped the list with 21,200 bales. Vietnam came second with 9,800 bales, while China came third with 6,300 bales.

The price of cotton was between Rs 18,800 to Rs 21,500 per maund. The price of Phutti was in the range of USC 1.13~1.30 Lbs. (18,800~21,500/ maund). The price of Phutti is between Rs10,000 and 11,000 per 40 kg.

  Opening Of the Week Closing Of the Week Change
Lowest 114.00 113.00 -1.00
Highest 130.00 130.00 0.00


Crude Oil prices opened at USD 110.29 with a lower level as compared to last week’s closing figures.
In this week, crude oil prices dropped in the next session, later showed an upward trend till closing, and
closed on the upward side by the end of the week.

In last day of the week, Crude Oil price closed at USD 115.07 with increase of USD 4.78 cents as of opening figure of week.

  Opening of Week Closing Of Week Change
Price 110.29 115.07 4.78


Last week value of the Pak rupee depreciated against US Dollar, and 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 1.08 and the British Pound also closed on a positive note with a figure of 1.26 against the USD.

  Selling Buying
LC Sight 201.66 201.61
LC 120 Days 198.16 198.11
Open Market 204.63 200.08


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

NYCF showed mixed sentiment in both ways this week, in last two weeks showed a downward trend and closed on the negative side by the end of the week.

On the last day of the week, JULY 2022 closed at 139.42 with a drop of 333 points.

On the last day of the week, OCT 2022 closed at 130.55 with a decrease of 206 points.

On the last day of the week, DEC 2022 closed at 122.95 with a downward of 303 points.

On the last day of the week, MAR 2023 closed at 118.73 with a sliding of 305 points.


Liverpool Index A was opened at 166.20, lower than the previous week’s closing figure.

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

At the last day of the week, LPI “A” closed at 163.20 with a decrease of 300 points.

  Opening of the Week Closing of the Week Change
Index A 166.20 163.20 -3.00


The local yarn market went firm by following NYCF and the local cotton market. The restricted business was done with sales pressure & limited inquiry materialized was perceived in the market. Suppliers reduced productions due to low demand and activity. The raw cotton prices in the Global market are followed by NYCF.

On another side currently, the acute pressure of sales in the challenging market is intently expected if NYCF’s inclination is downward.

PSF prices were increased by Rs.3/kg dated 23th May 2022 by IFL in the domestic market. PTA and MEG prices were firm in the international market and crude oil prices also stayed unwavering by end of this week. For next week, PSF prices are expected to increase Rs.2~3/kg by next week & yarn rates are projected to remain strong as well.

Faisalabad trading market usual activity was seen. Sales of PV/Viscose yarns were reported as periodic orders of PV/Viscose yarn started fine counts were also in demand and precise deals were made. Traders were in pushing their stocks and loom owners were in a tough position in yarn managing.

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

Count Price in Pak Rupees / 10 LBS Price US$/Bale
16/1 Carded Weaving 3353 – 3504 665 – 695
20/1 Carded Weaving 3403 – 3605 675 – 715
30/1 Carded Weaving 3655 – 3882 725 – 770
20/1 CM 3932 – 4084 780 – 810
30/1 PC Carded Weaving 52:48 2773 – 3050 550 – 605
40/1 Combed  Compact Weaving 4512 – 4613 895 – 915
60/1 Combed Compact Weaving 5924 – 6226 1175 – 1235
80/1 Combed Compact Weaving 8495 – 8848 1685 – 1755


Export yarn market remained slow for another weak in a row due to uncertain situation globally.

Customers floated minimal 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 under pressure which was another reason to make suppliers
aggressive in sales. However, the serious crisis is with cotton in Pakistan as suppliers are left with minimal stocks of old crops. New cotton arrival is going to start in June end but mills are unable to buy cotton at current prices as they can’t sell yarn with the same parity. So, we might see the closure of small factories as they will not be able to buy cotton at higher prices and sell yarn with low parity.

Bog groups have already started to curtail the production to drag cotton stocks to the maximum extent so that they keep on running their factories to avoid any closures.

Chinese customers floated limited numbers of inquiries against which order materialization was almost nill.

Customers remained in the market to book orders but despite a drop in cotton prices internationally, there was a gap of 3-5% in asking and bidding prices which ended up with dull business weak.

European customers floated limited numbers of inquiries. Customers remained on the sideline of buying as they are still not able to digest offered prices and resisted against it. Few deals are under negotiation and customers will close orders only where they could get their desired price levels.

Count USD / Bale
16/1 Carded Weaving 680 – 690
20/1 Carded Weaving 695 – 705
20/1 CM 740 – 750
16/1 CM 735 – 745
20/2 CD 805 – 815
24/2 CD 830 – 840


In current week under review the local fabric market remained slow and dull throughout the week for both narrow and wider width fabrics.

The buyer floated limited inquiries and remained sidelined throughout the week owing to the prevailing
uncertainty in the local cotton and yarn market. Weavers are following inquiries and ready to confirm orders at any reasonable bid with reduced inflows, but buyers are still bidding approx 3~4% lower than the asking prices of weavers. As a result, thin business activity reported for both narrow and wider width fabrics.

Currently, weavers are booked in narrow width looms till end June’22 and also have coverage of their wider width looms till end June’22 ~ Mid July’22 and offering 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 1.80 – 1.82
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.33 – 1.35


Its been few weeks that export fabric market is dull for Far Eastern markets.

Customers are not exchanging their bulk inquiries due to less demand and higher prices than their phycological level.

Asking prices are stable despite of higher raw material prices.

Very few suppliers are booked till mid of July otherwise all of other suppliers are still offering end June onward deliveries depending on the quality.

Average business activity was seen from European customers as some of the suppliers were able to get some regular orders mainly in narrow width hence the sales position with some suppliers got better for next 40~50 days.

In general European customers are not into new buying and waiting for some time. Wider widths suppliers are also chasing orders and offering end July 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 1.64 – 1.66
16X12/108X56 63″  3/1 1.80 – 1.82
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.34 – 1.36


Home Textiles overall situation is not good as cancellation of orders and slow lifting is impacting the
factory cash flows as well as their production lines. NYCF is one of the factor in customers decision as
there is a lot of fluctuation in NYCF and local cotton is finished due to which prices are on higher side.
Next few weeks are expected to be remain same as per current situation and customers will keep
reviewing all factors before placing some volumes.

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 which is a big concern for the industry.


In general, apparel customers kept the factory production area busy until the Mid of Aug 22. Now the
factories are offering deliveries from Aug onward. Commodity prices fluctuate on an everyday basis,
however, spinning mills show soft gestures and are willing to book orders with garment factories. Due to a shortage of demand, spinners couldn’t get any big amount of orders even on the low price of yarn.

In a recent week, it has been observed that customers have held the orders and they are not showing any
interest in placing big orders in the market. The only reason is the instability of raw material prices and the other factor is Ukraine-Russia War.

So far, apparel manufacturers have been quite successful in carrying developments for the SS23 season and bulk orders are on the way for the season. For the FW23 season, customer has started placing development in the factories.


About the future market, it is projected that Local yarn prices will be nattering to local cotton prices and
international trends of NYCF, and demand from the end customers. Further price fondness will be according to the demand and supply of different yarn counts which will lead to the price level.

For the local cotton, confused market sentiment is observed, due to extra hike in cotton prices locally and internationally, on the same time slow demand of value-added items. Cotton parity with yarn is going to be tough these days. Banks increased interest rates and the devaluation of Pak Rs influenced the business market.

Import and export more are difficult now a days and market is direction less. Moving forward we expect slow sentiments without any abrupt change may prevail for coming weeks for local fabric.

The export yarn market remained slow with a very silent sentiment. Customers floated a limited number of inquiries against which, suppliers quoted prices in an aggressive way but could not catch any orders due to uncertain situations. We might see slow sentiment in days to come as customers are still not confident to place bulk orders.

The garment industry is also facing bad sentiments, since the textile raw materials, in general are getting
affected. The rest will depend on the new arrival of cotton on June-22.

Next few weeks are expected to be remain same as per current situation and customers will keep reviewing all factors before placing some volumes. 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 which is a big concern for the industry.

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