Market Report- Pakistan 21st Jun 2022


During the last week in the local cotton market, the rate of cotton had been on the rise. A bullish trend prevails in international cotton markets.

Currently, cotton production is said to be satisfactory; however, heavy rains may affect the crop. There are complaints that the textile and ginning sector was ignored in the budget.

In the local Cotton market prices had been on the rise due to interest in buying shown by textile mills. The price of Phutti is between Rs9,000 and 10,000 per 40 kg. The price of cotton per maund is Rs. 21,000-23,000. 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 load 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 export report, more than 2 lakh 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 between Rs 9000 to Rs 10,000.

  Opening Of the Week Closing Of the Week Change
Lowest 126.00 124.00 -2.00
Highest 132.00 130.00 -2.00


Oil prices opened at USD 120.93 with an upper level as compared to last week’s closing figures.

This week, crude oil prices showed a downward trend and closed on the downward side by the end of the

On the last day of the week, Crude Oil prices closed at USD 109.56 with a decrease of USD 11.37 as of the
opening figure of the week.

  Opening of Week Closing Of Week Change
Price 120.93 109.56 -11.37


Last week’s value 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 positive note with a figure of 1.05 and the British Pound also closed on a negative note with a figure of 1.23 against the USD.

  Selling Buying
LC Sight 206.43 206.38
LC 120 Days 199.05 199.00
Open Market 210.23 205.57


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

NYCF showed mixed sentiment both 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 143.45 with reduce of 221 points.

On the last day of the week, OCT 2022 closed at 129.63, decreasing 449 points.

On the last day of the week, DEC 2022 closed at 122.81 with a downward of 452 points.

On the last day of the week, MAR 2023 closed at 118.21 with sliding of 406 points.


Liverpool Index A was opened at 164.55 with the upper level of the previous week’s closing figure.

This week’s Index “A” showed an upward trend in this week and closed on the negative side by the end of the week.

On the last day of the week, LPI “A” closed at 161.05 with a decrease of 35 points.

  Opening of the Week Closing of the Week Change
Index A 164.55 161.05 -3.50


The Local yarn market went firm by following NYCF and the local cotton market. Prices were increased after the Pak Rupees devaluation. The limited flow of inquiry was witnessed resulted in a restricted business with sales pressure in these upmarket price points. Weavers were not in the state to accept these price fragments. The raw cotton prices in the Global market are followed by NYCF. On another side presently the acute pressure of sales in the challenging market is anxiously expected if NYCF’s inclination is downward.

PSF prices were amplified by Rs.10/kg dated 13th June 2022 by IFL in the domestic market. PTA and MEG prices were similarly firm in the international market while crude oil prices plunged 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 3406 – 3535 660 – 685
20/1 Carded Weaving 3432 – 3664 665 – 710
30/1 Carded Weaving 3690 – 3896 715 – 755
20/1 CM 3948 – 4154 765 – 805
30/1 PC Carded Weaving 52:48 2838 – 3071 550 – 595
40/1 Combed  Compact Weaving 4490 – 4645 870 – 900
60/1 Combed Compact Weaving 5935 – 6270 1150 – 1215
80/1 Combed Compact Weaving 8464 – 8825 1640 – 1710


Export yarn market remained under slightly improved business activity.

Customers floated good numbers of inquiries against which order materialization was slightly bettered.

It has been witnessed that customers showed betterment in placing orders where they got required prices from the supplier end.

Suppliers remained aggressive in sales and tried to close maximum business with their running inquiries. Some deals were matured even with the repeat prices of the same old orders.

Pakistan’s textile sector is in crisis due to the high price of cotton and slow demand for yarn from customers in domestic and international markets.

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 existing cotton stocks drop.

Chinese customers floated good numbers of inquiries against which order materialization was better.

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 enquiries. 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 670 – 680
20/1 Carded Weaving 680 – 690
20/1 CM 725 – 735
16/1 CM 720 – 730
20/2 CD 790 – 800
24/2 CD 825 – 835


The local fabric market remained slow and dull throughout the week for both and narrow width fabrics.

Local brands shared limited inquiries and also confirmed limited orders for both narrow and wider width fabrics whereas local finishers remained sidelined and resultantly week closed with thing activity for both narrow and wider widths fabrics.

Buyers are still bidding approx 4~5% lower than the asking prices of weavers. As a result, slow business activity prevailed for both narrow and wider width fabrics.

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

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 “S” TWILL PAK CTN 1.64 – 1.66
16X12/108X56 63″  3/1 1.81 – 1.83
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.32 – 1.34


Generally, markets are very slow as customers are not into buying bulk quantities nowadays due to economic recession all around the globe.

Far Eastern customers have exchanged limited inquiries and conducted bookings for small quantities only. They are waiting for a price reduction before taking bulk quantity buying decision.

Asking prices slightly reduced due to weak currency against the US dollar.

Suppliers are booked for the next 20~30 days and offering end July onward deliveries

European and USA buyers is preparing for the coming Heimtex, Technical textile fair held in Germany from 21st ~ 24th June.

People are very optimistic that it is good to see their customers during Heimtex after a long time and after covid.

It is observed that most of the customers are not participating in the fair this year due to slow market sentiments European and USA buyers have exchanged a limited number of inquiries but their target prices were about 10~15% lower hence no considerable buying was witnessed.

Wider width suppliers are offering mid-Aug onward deliveries nowadays.

Construction Price US$/YD CNF Far East
20CDX16CD/128X60 –  63″  3/1 “S” TWILL PAK CTN 1.60 – 1.62
16X12/108X56 63″  3/1 1.76 – 1.78
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.32 – 1.34


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 some quantities.

Heimtex is starting from 21-Jun and it is expected that this will generate some business volume for Pakistan factories.

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.


Apparel customers have kept the factories busy till End August 22 and are offering deliveries onward. 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.

At the international level, many large retail brands are reducing their buying and not placing bulk orders on the market due to the lower demand in the market, which affects the manufacturers directly, since they have fewer orders from the customers and are also not in a good situation, so they reduced their production capacities around up to 40-50%.

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.

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 estimated 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 coming weeks, we expect that the local fabric market may remain in a dull phase for both narrow and wider width fabrics

The export yarn market showed betterment in terms of business activity as customers have placed orders with selected suppliers. Customers floated a limited number of inquiries against which very few deals were matured.

We might see orders placements at the end of June for inquiries under discussion. Average business activity was seen during the week for Export Fabric markets due to slow demand. Prices remained stable and are expected to remain the same as per current prevailing prices. It is expected that business activity may resume from mid of next month.

Business activity in the garment industry is quite slow and globally inflation hitting badly the Pakistan garment industry. Most of the big retailers slicing down their productions.

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