Market Report- Pakistan 7th Jun 2022


During the last week in the local cotton market, buyers are in wait & watch mode, keeping their eyes on the prices and arrival of crops in full swing.

In the local cotton market, prices showed a downward trend due to the start of the gradual arrival of new crops and the drop in prices internationally. The price of Phutti is between Rs 9,500 and 10,500 per 40 kg. The price of cotton per maund is Rs. 22,000. KCA dropped also decreased rs.1500 this week and came at a level of Rs.21,000 per maund.

It is pertinent to mention here that the new cotton season in Pakistan will start in July and the Spot Rate
Committee of Karachi Cotton also issues a new rate on July 1.

In many cotton-producing areas of Sindh and Punjab, at present, the cotton crop is better except in some areas due to which the supply of cotton is increasing day by day. Many ginning factories will resume their operations from June 15 while the supply of Phutti will significantly increase from July 15 as well.

The cultivation of cotton has completed over 1.936 million hectares of land in the potential areas countrywide against the target of 2.32 million hectares for the current season (2021-22). The crop sowing; however, decreased by about 6.9% as compared to the cultivation of over 2.078 million hectares in the previous season.

The rate of the US dollar has started decreasing but the country’s economic situation has made it difficult to make quick decisions. It is becoming increasingly difficult to make any business decisions due to the increasing prices of petroleum products and electricity. It is expected that after the next budget inflation will further increase.

New York Cotton’s July future trading price reached the highest level of 155 American cents and then fell to the lowest level of 135 American cents, after which it closed at 138 American cents. According to the experts, it could go down to 130 American cents. In the same way rate of Future Trading for December is declining.

Cotton prices continue to decline in Brazil, Central Asia, and Africa, while in India the price of cotton is much higher as spinning mills are suspending their operations or becoming partially operational
because the rate of cotton is higher than the cotton yarn parity.

According to the USDA’s weekly export and sales report, more than three lac bales of cotton for the year 2021-22 were sold which is significantly higher than the previous week’s average. China topped the list with more than one lac forty-four thousand bales, followed by Vietnam with more than 87,000 bales. Bangladesh was number third with more than 43,000 bales.

The price of cotton was between Rs 21,000 to Rs 22,000 per maund. The price of Phutti was in the range of USC 1.29~1.35 Lbs. (21,000~22,000/ maund). The price of Phutti is between Rs9,500 and 10,500 per 40 kg.

  Opening of the Week Closing of the Week Change
Lowest 129.00 129.00 0.00
Highest 140.00 135.00 -5.00


Crude Oil prices opened at USD 114.67 a lower level than last week’s closing figures.

This week, crude oil prices showed an upward trend and closed on the upward side by the end of the week.

On the last day of the week, Crude Oil prices closed at USD 118.87 with an increase of 4.20 cents as of the opening figure of the week.

  Opening of Week Closing Of Week Change
Price 114.67 118.87 4.20


Last week value of the Pak rupee was appreciated against US Dollar. Other major currencies showed
mixed trends in both interbank and open markets.

At the end of the week, Euro closed on a negative note with a figure of 1.07 and British Pound also closed on a negative note with a figure of 1.25 against the USD.

  Selling Buying
LC Sight 197.03 196.98
LC 120 Days 193.49 193.44
Open Market 199.93 195.48


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

NYCF showed mixed sentiment in both ways this week and closed on the negative side by the end of the week.

On the last day of the week, JULY 2022 closed at 138.18 with a drop of 80 points.

On the last day of the week, OCT 2022 closed at 126.66 with a decrease of 342 points.

On the last day of the week, DEC 2022 closed at 117.90 with a downward of 455 points.

On the last day of the week, MAR 2023 closed at 113.45 with sliding of 472 points.


Liverpool Index A was opened at 158.70 lower than the previous week’s closing figure.

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

On the last day of the week, LPI “A” closed at 157.45 with a decrease of 125 points.

  Opening of the Week Closing of the Week Change
Index A 158.70 157.45 -1.25


The local yarn market remained persistent and steady in asking prices and restricted business was seen at these price levels. Mills are covered up to June end and early July-22. On the other hand, weavers were prerequisites to accepting these price segments. The raw cotton prices in the Global market are followed by NYCF. On another side currently, the desperate pressure of sales in the stimulating market is intently expected if NYCF’s preference is downward.

PSF prices were amplified by Rs.2/kg dated 30th May 2022 by IFL in the domestic market. PTA and MEG prices were firm in the international market and crude oil prices also stayed untiring by end of this week. For next week, PSF prices are expected to increase Rs.2~3/kg & yarn rates are projected to remain strong as well.

Faisalabad trading market standard 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 specific deals were made. Traders were in pushing their stocks and loom owners were in a hard 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 3350 – 3497 680 – 710
20/1 Carded Weaving 3399 – 3596 690 – 730
30/1 Carded Weaving 3645 – 3867 740 – 785
20/1 CM 3916 – 4064 795 – 825
30/1 PC Carded Weaving 52:48 2734 – 3029 555 – 615
40/1 Combed  Compact Weaving 4482 – 4581 910 – 930
60/1 Combed Compact Weaving 5911 – 6206 1200 – 1260
80/1 Combed Compact Weaving 8472 – 8817 1720 – 1790


Export market remained under the clouds of uncertainty and customers remained aside from buying.
Customers have floated good numbers of inquiries against which order materialization was very dull.

A major reason for this slow business activity was the lack of demand from the customer side.

If we overall analyze the situation in the market, suppliers are not able to continue their production by buying cotton at existing prices, hence, many factories are getting closed.

Some suppliers have good financial conditions and old cotton stocks of low prices are running in their factories but they have also cut down their productions of coarse counts and produce fine counts to keep themselves away from existing low price stocks drop.

Customers floated minimal numbers of inquiries against which order confirmation was dull.

Suppliers were actively offering prices and followed the inquiries to get orders.

Chinese customers floated a limited number of inquiries against which order materialization was very slow.

Customers remained in the market to book orders but suppliers are limited for coarse counts and customers’ desired prices were not matched.

European customers floated a limited number 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 675 – 685
20/1 Carded Weaving 690 – 700
20/1 CM 735 – 745
30/1 Carded Weaving
30/1 CM
32/1 CM
16/1 CM 730 – 740
20/2 CD 800 – 810
24/2 CD 825 – 835


The local fabric market remained slow but slightly improved activity reported for both narrow and wider width fabrics in the current week under review

The finishers floated inquiries and also booked some orders after tough negotiations at last week’s price level to cover their urgent requirements for both narrow and wider width looms.

A hint of f slight improvement in fabric prices was observed for both narrow and wider width fabrics owing to an increase in yarn prices.

Weavers are now booked till Mid-July ~ end of July in wider width and also covered their narrow width till early July’2022 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 1.82 – 1.84
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.34 – 1.36


Far Eastern customers are keeping stock from the previous booking hence they are not into buying nowadays days.

They are exchanging nominal inquiries for price checking so no considerable buying was noticed.

The asking prices are the same as last week without a change.

Suppliers are continuously chasing their customers to get orders but the situation is not favorable.

Suppliers are booked till the end of June and offering mid-July onward deliveries.

A limited number of inquiries were exchanged by European and USA buyers hence average business activity was observed.

Suppliers got some repeat orders from their existing customers which gives them somehow relief from sales pressure.

Wider width suppliers are booked till mid of July and offering end July ~ Early Aug 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 Industry is going through a silent spell and the overall situation is on the declining side, few orders are placed by customers to fulfill their new season requirements but a large volume of business is not being placed due to high stock level. US big retailers have slowed down their goods lifting from factories and even have canceled quantities.

The next few weeks are expected to remain the same as per the current situation and customers will keep
reviewing all factors before placing some volumes as it is anticipated that prices will go down but all large volume businesses will depend on the stock level all around the globe. There is also a financial crunch developing throughout the textile industry due to the slow lifting of goods, vessel congestion, and change of payment mode of factories which is a big concern for the industry.


Overall garment market was unstable. Customer inquiries and order flow was slow due to low demand
in the market. The main reason is inflation, which is increasing very rapidly around the world.

However, factories are booked till End July/early August and they are offering deliveries onward. On the
other hand, factories are working with their 40-50% capacities only.

Factories are busy delivering in FW22 seasonal ranges and waiting for SS23 new bulk orders. Side by side many factories also received development for FW23 and started work. Getting next seasonal developments shows positive sentiments but still, customers are in wait & see the situation before placing big placements.


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

On the local cotton front, a significant decline in the rate of cotton in international cotton markets was also witnessed. Experts have the opinion that international cotton may drop soon around the level of 130 cents.

Therefore, in the coming days, cotton buying may drop and buyers will wait to settle down the prices.
For the coming weeks, we expect that the local fabric market may remain slow and no major change is expected in the current prevailing trend.

The export yarn market remained dull and slow for another week in a row. Customers floated a reasonable number of inquiries against which very few deals were matured. Tug of war between supplier and customer is going on and we might see order placements in days to come.

The export fabric market remained mixed as Far Eastern customers are not into buying however some orders were placed by the European customers both in narrow and wider width fabric. Prices remained the same as last week and expected that prices may remain in the same range with a 2~3% margin.

For the Garment industry, the next few weeks will be characterized by subdued trading activity and customers place orders only when they check all factors.

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