Market Report- Pakistan 14th Jun 2022


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

In the local cotton market, prices showed a stable trend due to the start of the gradual arrival of new crops and the Bullish trend internationally. The price of Phutti is between Rs. 9,000 and 10,000 per 40 kg. The price of cotton per maund is Rs. 22,000. KCA kept the spot rate unchanged this week at the 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.

Cotton prices are also expected to rise in international markets in the new season, forcing textile spinners to be cautious in purchases. The economic situation of the country is not good. No one is looking seriously to stop the high flight of the US dollar. The political situation is also unstable. There is an increasing trend in the prices of petroleum products. Electricity oad shedding is also on the rise. It is expected that these difficulties will increase in the coming days. In such a situation it will be very difficult to do business.

According to the weekly USDA’S export report, more than 2 lakhs 2 thousand 900 bales were sold in 2022-23. China topped the list with more than sixty-six thousand bales. Guatemala came in second with more than twenty-five thousand bales. Mexico came in third with eleven thousand bales.

The price of cotton in Sindh and Punjab was between Rs. 21,000 and Rs. 23,000 per maund. The rate of Phutti per 40 kg was in ween Rs 9000 to Rs 10,000.

Opening Of the Week Closing Of the Week Change
Lowest 128.00 128.00 0.00
Highest 134.00 134.00 0.00


Crude Oil prices opened at USD 118.50 with a lower level as compared to 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 last day of the week, Crude Oil prices closed at USD 120.67 with an increase of USD 2.17 cents as of the opening figure of week.

Opening of Week Closing Of Week Change
Price 118.50 120.67 2.17


In last week values of Pak rupee depreciated against US Dollar’s, and 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 1.96 and the British Pound also
closed on a negative note with a figure 2.18 against USD.

Selling Buying
LC Sight 199.76 199.71
LC 120 Days 193.46 193.41
Open Market 203.26 198.74


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

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

On the last day of the week, JULY 2022 closed at 145.06 with rose of 732points.

On the last day of the week, OCT 2022 closed at 130.06 with an increase of 214 of points.

On the last day of the week, DEC 2022 closed at 122.36 with upward of 256points.

On the last day of the week, MAR 2023 closed at 117.84 with a sliding of 273 points.


Liverpool Index A was opened at 156.95 with a lower level of the previous week closing figure.

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

At last day of the week, LPI “A” closed at 159.10 with increase of 215 points.

Opening of the Week Closing of the Week Change
Index A 156.95 159.10 2.15


The local yarn market remained unhurried and stable in asking prices and usual business was seen at these price levels. Mills have to manage the production of yarn counts as per cotton coverage & sale position. On the other hand, weavers were in the state to accept these price segments. The raw cotton prices in the Global market are followed by NYCF. On another side currently, the anxious 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 6th June & Rs.3/kg dated 7th June 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.5~8/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 3396 – 3546 680 – 710
20/1 Carded Weaving 3446 – 3646 690 – 730
30/1 Carded Weaving 3696 – 3920 740 – 785
20/1 CM 3970 – 4120 795 – 825
30/1 PC Carded Weaving 52:48 2772 – 3071 555 – 615
40/1 Combed  Compact Weaving 4545 – 4644 910 – 930
60/1 Combed Compact Weaving 5993 – 6292 1200 – 1260
80/1 Combed Compact Weaving 8590 – 8939 1720 – 1790


The export yarn market remained under the clouds of uncertainty and customers remained aside from buying.

Customers have floated a limited number of inquiries against which order materialization was very dull.

A major reason for this slow business activity was minimal demand from buyers.

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 having good financial condition and old cotton stocks of low prices are running their factories but they have also cut down their production of coarse counts and producing fine counts to keep themselves away from stocks drop of raw material.

Customers floated a limited number 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 limited numbers of inquiries. Customers are preparing for Heimtex and we might see some order placements during or after Heimtex now from the European market.

Count USD / Bale
16/1 Carded Weaving 675 – 685
20/1 Carded Weaving 690 – 700
20/1 CM 735 – 745
16/1 CM 730 – 740
20/2 CD 800 – 810
24/2 CD 825 – 835


In the current week under review, the local fabric market remained dull throughout the week for both narrow width fabrics and subsequently, the week closed with slow sentiment for both narrow and wider width fabrics owing to uncertainty prevailing in the international markets.

Limited inquiries floated by the finishers and opted to remain sidelined throughout the week. Weavers are following inquiries and showing interest in capturing floating orders even with reduced inflows, but buyers are bidding approx 3~4% lower than the asking prices of weavers. As a result, slow business activity was reported for both narrow and wider width fabrics.

Currently, weavers are booked in narrow width looms till early July’22 and also have coverage of their wider width looms till mid-July’22 ~ end of July’22 and offering onward deliveries.

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 “S” TWILL PAK CTN 1.66 – 1.68
16X12/108X56 63″  3/1 1.83 – 1.85
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.34 – 1.36


Some customers from Far Eastern markets have exchanged their inquiries resulting in limited booking with their selected suppliers.

Customers are buying only urgent orders nowadays due to less demand.

Asking prices are stable however suppliers are interested to discuss reasonable target prices.

Suppliers are booked for the next 20~30 days max and offering mid-July onward deliveries.

Improved business activity was witnessed from European and USA buyers as they have exchanged a good number of inquiries both in a narrow and wider width

Suppliers are preparing sample collections for the upcoming Heimtex fair held in Germany from 21st June ~ to 24th June however most of the customers are not attending this fair due to inactive market. Wider width suppliers are booked till the end of July and offering onward deliveries.

Prices for wider widths remained stable due to stable yarn prices however work wear prices were firm due to an increase in polyester prices.

Following are the prices 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 slow as inquiry flow has decreased around the globe, and new order
placements are also on the decline. Factories are facing cancellation of orders and slow lifting is
impacting the cash flows as well as their production lines. NYCF is one of the factors in customers’
decisions as there is a lot of fluctuation in NYCF, whereas local cotton is finished due to which prices
are on the higher side.

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. There is also a financial crunch developing throughout 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.


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

In all the current circumstances, the good news is factories are getting new developments for next season FW23 and expecting bulk orders for SS23 against which the development has been delivered. However, customers are in a wait-and-see situation due to current turbulence and not placing big orders due to less demand.

Sustainability remained an important element as most of the customers especially leading global brands required eco-friendly products. Pakistan garment factories have got all the necessary setup 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.


About the future market, it is projected that Local yarn prices will be conversing to local cotton prices
and international trends of NYCF, plus as per Pakistan tax budget 2022~2023 dated 10th June and plan of taxes in utilities + tariffs and other overheads, there will be the impact on the cost of production of yarn. Further price fondness will be according to the demand and supply of different yarn counts which will lead to the price level.

A significant upward trend 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.

Local fabric market may carry slow sentiments for coming weeks and therefore we expect a dull activity for both narrow and wider width fabric market.

The export yarn market remained dull and slow for another week in a row. Customers floated a limited number of inquiries against which very few deals were matured. We might see orders placements in end of June for inquiries under discussion

Business activity for the export fabric was improved during the week however customer target prices were 5~6% lower than the market prices hence limited booking was observed. It is expected that the market situation will remain average due to less demand from the globe. Prices are expected to remain the same as last week.

Worldwide inflation is hitting badly the garment industry as well and many big retailers are also cutting down their productions, however, customers are now showing interest in sustainability products.

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