Market Report- Pakistan 28th Jun 2022


During the last week in the local cotton market, the cotton rate has fallen sharply. A bearish trend prevails in international cotton markets.

Currently, the Cotton production target in Punjab will not be achieved; however, rains have positive effects on cotton production. The 17% sales tax on cotton, has been abolished due to the efforts of the Pakistan Cotton Ginners Association. There are complaints the hat textile and ginning sector was ignored in the budget.

In the local Cotton market prices dropped down. The price of Phutti also come down by Rs1000 to Rs1200 per 40 kg and was in between Rs.8200 to Rs 8600. The price of cotton per maund is Rs. 18,500-19,000. KCA kept the spot rate reduced this week at the level of Rs. 18,800 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 declining in international markets. 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 USDA’s weekly export and sales report, 16,200 bales were sold for the year 2021-22 which is 39 percent less as compared to the previous week. Vietnam topped the list with 6,300 bales. China came in second with 4,500 bales. Mexico came in third with 2,800 bales.

The price of cotton in Sindh and Punjab was between Rs.18,500 and Rs.19,000 per maund. The rate of Phutti per 40 kg was between Rs 7000 to Rs 8,200.

According to reports, buyers are less interested in Heimtextil, a global exhibition of textile products held in Frankfurt, Germany.

  Opening Of the Week Closing Of the Week Change
Lowest 125.00 124.00 -1.00
Highest 131.00 130.00 -1.00


Crude Oil prices opened at USD 110.65 with an upward 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 107.17 with a decrease of USD 3.48 as of the
opening figure of the week.

  Opening of Week Closing Of Week Change
Price 110.65 107.62 3.48


Last week 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 negative note with a figure of 1.0556 and the British Pound also closed on a negative note with a figure of 1.2264 against the USD.

  Selling Buying
LC Sight 206.35 206.30
LC 120 Days 199.42 199.37
Open Market 210.03 205.38


New York Cotton futures opened with low levels on Monday as 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 103.76 with a decline of 397 points.

On the last day of the week, OCT 2022 closed at 107.15 with a decrease of 135 points.

On the last day of the week, DEC 2022 closed at 98.05 with reduce of 358 points.

On the last day of the week, MAR 2023 closed at 93.52 with sliding of 161 points.


LPI was opened at 161.30 with a lower level than 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 150.50 with a decrease of 108 points.

  Opening of the Week Closing of the Week Change
Index A 161.30 150.50 -10.80


The Local yarn market went plunging following NYCF and the local cotton market. Prices were steady after the Pak Rupees devaluation & restricted business was seen. NYCF radical dropped by last week and partial inquiry flow was seen in the market. Sellers were engrossed in selling the yarn whereas buyers are in noticing situations.

Weavers were not in the state to accept these price fragments. The raw cotton prices in the Global market are followed by NYCF.

PSF prices were increased by Rs.5/kg dated 20th June 2022 by IFL in the domestic market. PTA and MEG prices were equally firm in the international market while crude oil prices also little leaped by end of this week. For next week, PSF prices are expected to further increase by Rs.2~3/kg & yarn rates are predictable to remain resilient as well.

Faisalabad’s trading market has shown no activity. Neither sales of PV/Viscose yarns were reported nor payments released. There is less demand for attaining further yarn. 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 3353 – 3482 650 – 675
20/1 Carded Weaving 3379 – 3611 655 – 700
30/1 Carded Weaving 3637 – 3843 705 – 745
20/1 CM 3895 – 4101 755 – 795
30/1 PC Carded Weaving 52:48 2786 – 3018 540 – 585
40/1 Combed  Compact Weaving 4437 – 4591 860 – 890
60/1 Combed Compact Weaving 5881 – 6216 1140 – 1205
80/1 Combed Compact Weaving 8409 – 8770 1630 – 1700


The export yarn market remained under severe pressure due to the slash of cotton in the international market.

Customers remained on the sideline after getting prices and didn’t show any interest in buying.

Many customers and suppliers were busy in Heimtextil throughout the week but the response was not that good.

Customers remained in the market and kept on checking prices. However, there have not been any placements as customers are confused about the sudden crash of the market.

If we generally analyze the cotton prices, it has shown a drastic drop which has created severe uncertainty amongst the suppliers and customers.

Business activity is on halt and customers are quite indecisive that how to proceed under the circumstances.

Some customers have started to place orders for limited quantities at lower prices just to average out their buying prices.

Most of the suppliers are not able to continue their production by buying cotton at existing prices, hence, many factories are getting closed. However, the recent crash in cotton prices may give motivation to spinners to book cotton.

However, a very important issue Pakistan’s textile industry is facing is the heavy burden of Taxes on the Textile industry, in addition, to a hike in Electricity, Gas, and Petroleum prices. So, the cost of production is not going to show any considerable effect on prices.

Chinese customers remained on the sideline and no such business activity was witnessed. Customers floated a limited number of inquiries just to check the market. No business was concluded.

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

Count USD / Bale
16/1 Carded Weaving 685 –  690
20/1 Carded Weaving 690 – 695
20/1 CM 725 -730
16/1 CM 720 -725
20/2 CD 800 – 805
24/2 CD 835 – 840


In the current week under review, the local fabric market continued a slow trend for another week for both narrow-width fabrics

Finishers shared thin inquiries as New York cotton future dropped sharply towards the end of the week which stunned market players therefore finishers and local brands opted to remain sidelined.

Resultantly dull business activity was reported throughout the week for both narrow and wider width fabrics.

Buyers are still bidding approx 4~6% lower than the asking prices of weavers. Currently, weavers are booked in narrow width looms till 3rd Week-July’22 and also have coverage of their wider width looms till the end of July’22 and offer onward deliveries.

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 “S” TWILL PAK CTN 1.55 – 1.57
16X12/108X56 63″  3/1 1.72 – 1.74
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.28 – 1.30


Far Eastern markets remained aside from buying during the week due to many drops in NYCF.

Customers are still analyzing the market situation before taking buying decision.

Asking prices remained almost stable however suppliers are interested to discuss orders with a 2~3% difference.

Suppliers are booked till mid of July and offering onward deliveries. Most of them have sales coverage for the next 25~30 days max.

Some of the European and USA buyers were participating Heimtextil fair held in Germany during the week. Most of the customers did not attend the fair this time.

Customers have exchanged their inquiries with their suppliers during the fair and hopefully will decide to place the orders during the next couple of days

Wider width suppliers have extended their sales till mid of Aug and offering end Aug onward deliveries
Prices show little softening followed by the NYCF trend.

Construction Price US$/YD CNF Far East
20CDX16CD/128X60 –  63″  3/1 “S” TWILL PAK CTN 1.54 – 1.56
16X12/108X56 63″  3/1 1.70 – 1.72
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.28 – 1.30


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 canceled some quantities.

Many orders were discussed during the Heimtextil fair 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 further 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.


We have observed, that the garment market was very slow in terms of order finalization. Overall inquiry flow is also dull due to slow demand from the market. This also put an impact on factories where they are cutting down their capacities by 40-50%. However, factories are booked till End August and offer onward deliveries. The main cause is worldwide inflation, which is hitting every region badly.

Many large retailers are going into cancellation and not picking up the stock produced. It has been confirmed from various sources that the influx of customers into
the stores is decreasing.

Factories are busy delivering bulk orders of 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 estimated that 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.

A significant downward trend in the rate of Local cotton. International cotton markets were also witnessed. The drastic drop in cotton prices completely changes the sentiment of the market and customers hold all their requirements in anticipation of further decline in prices. Buyers will wait to settle down the prices.

For coming weeks, we may forecast dull business activity in local fabric owing to prevailing uncertainty in the local and international cotton market.

Export yarn market remained under sluggish business activity as customers are on the sideline of buying. The drastic drop in cotton prices completely changes the sentiment of the market and customers hold all their requirements in anticipation of further decline in prices.

The average business activity may be seen for export fabric because of less demand. Prices may remain the same with 2~3% variation due to the soft raw material trends.

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.

Average business activity was seen in the home textile sector. Customers are expecting a further decline in prices so they are waiting for the right time for buying.

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