Market Report- Pakistan 18th July 2022


During the last week in the local cotton market, cotton prices continue to decline. Overall, the bearish trend continued to prevail in the international cotton market. Currently, the Cotton production target in Punjab will not be achieved; however, rains have positive effects on cotton production.

In the local Cotton market prices had felled. The price of Phutti also comes down from Rs 4500 to 6500 per 40 kg. The price of cotton per maund is Rs. 15,000. KCA kept the spot rate reduced this week at a level of Rs. 14,500 per maund.

According to the information, the crop has not been damaged due to the rains, although it has benefited further rains may be harmful.

According to the textile sector, the demand and price of cotton yarn are falling due to a severe financial crisis and an increase in the energy cost of textile mills. Besides the increase in the cost of production due to the increase in interest rate it is difficult to compete with the regional countries.

Partial trading started in the local cotton market on Wednesday after the Eid-ul-Adha holidays but trading volume remained subdued due to rains. Although trading of rain-affected cotton remained continued in the market according to its quality.

Cotton prices are also declining in international markets.

According to the USDA’s weekly export and sales report, more than ten thousand bales were sold which was seventy-three percent less as compared to last week. More than 1 lac 39 thousand bales were sold for
2022/2023. Turkey was at the top by buying 73 thousand and eight hundred bales. Pakistan bought 33 thousand and nine hundred bales and came second. India bought 13 thousand and two hundred bales and stood at the third position.

The price of cotton in Sindh province is Rs 13,500 to Rs 14,500 per maund The rate of Phutti is between Rs 4500 to 6500 per 40 kg.

  Opening Of the Week Closing Of the Week Change
Lowest 87.00 87.00 0.00
Highest 93.00 93.00 0.00


Crude Oil prices opened at USD 104.09 with a lower 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 97.59 with a decrease of USD 6.50 as of the
opening figure of the week.

  Opening of Week Closing Of Week Change
Price 104.09 97.59 -6.50


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 negative note with a figure of 1.0089 and British Pound also closed on a negative note with a figure of 1.1854 against the USD.

  Selling Buying
LC Sight 209.13 209.08
LC 120 Days 203.78 203.73
Open Market 212.35 207.65


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, OCT 2022 closed at 96.41 with a decrease of 603 points.

On the last day of the week, DEC 2022 closed at 88.71 with a reduction of 613 points.

On the last day of the week, MAR 2023 closed at 84.85 with sliding of 583 points.


Liverpool Index A was opened at 135.95 with the Upper level of the previous week’s closing figure.

This week Index “A” showed a downward trend and closed on the lower side by the end of the week.

On the last day of the week, LPI “A” closed at 121.75 with a decrease of 142 points.

  Opening of the Week Closing of the Week Change
Index A 135.95 121.75 -14.20


The Local yarn market went plunging following NYCF and the local cotton market. Prices dropped by after a descent in NYCF and local cotton limited business. Mills are carrying stocks and having cash flow problems.

Sellers were engrossed in selling the yarn. Whereas buyers are in perceiving situations & the raw cotton prices in the Global market are followed by NYCF.

PSF prices remained unchanging in the domestic market during the last week ended. PTA and MEG prices were similarly steady in the international market while crude oil prices dropped by end of this week. For next week, PSF prices are expected to decrease by Rs.7~10/kg & yarn rates of PC/CVC will decline as well.

Faisalabad’s trading market has shown no bustle. Limited sales of PV/Viscose yarns were reported, cash flow crunch remains preoccupied. There is less fiat for attaining further yarn. Traders were strident with their stocks and loom owners were in an inflexible 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 3215 – 3320 615 – 635
20/1 Carded Weaving 3268 – 3451 625 – 660
30/1 Carded Weaving 3451 – 3738 660 – 715
20/1 CM 3817 – 3973 730 – 760
30/1 PC Carded Weaving 52:48 2771 – 2954 530 – 565
40/1 Combed  Compact Weaving 4287 – 4392 820 – 840
60/1 Combed Compact Weaving 5882 – 6143 1125 – 1175
80/1 Combed Compact Weaving 8391 – 8627 1605 – 1650


The export yarn market remained under a sliding trend due to a continuous fall in cotton prices around the globe.

Cotton prices remained under pressure till mid of the week, however, at the end of the week, cotton prices recovered and the week closed with some rise.

However, overall sentiment is soft and suppliers are trying to sell maximum quantities with a flexible tone in presence of firm bids.

Customers remained on the sideline as they are confused about market conditions.

It is expected that prices will show soft sentiment in days to come due to limited demand.

New cotton arrival has started and suppliers are putting tremendous efforts to get orders from spinning mills.

Recent rains in Sindh have damaged the cotton crop and this gave stability to the process of cotton and spinners booked cotton at increased prices.

All yarn suppliers have already reduced their prices and showing a flexible attitude in presence of firm bids.

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. Prices are dropping continuously so no business was concluded. It is expected that customers will be back in buying as cotton prices are becoming stable.

European customers floated limited numbers of inquiries against which few orders were placed.

Suppliers floated very attractive prices and those customers who decided at right time got attractive options.

Count USD / Bale
16/1 Carded Weaving 600 – 605
20/1 Carded Weaving 610 – 615
20/1 CM 785 – 790
16/1 CM 770 – 774
20/2 CD 690 – 698
24/2 CD 716 – 725


The local fabric market remained dull and silent due to a sharp decline in the local cotton market and resultantly, slow activity was reported for both narrow and wider width fabrics.

Finishers and local brands opted to remain sidelined throughout the week and only shared limited inquiries and only booked their urgent requirements after tough negotiations at a reduced-price level as compared to last week’s level and resultantly thin and negligible business materialization reported in the market for both narrow and wider width fabrics.

Buyers are bidding approximately 6% ~ 8% lower to the weavers against their offered price. Currently, weavers are booked in narrow width looms till Mid-August 2022 and also have coverage of their wider width looms till the end of August 2022 and offer onward deliveries.

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 “S” TWILL PAK CTN 1.46 – 1.48
16X12/108X56 63″  3/1 1.61 – 1.63
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.20 – 1.22


Almost dull business activity was seen from Far Eastern customers during the week under review. Some of the Korean customers have exchanged their inquiries of regular articles as well as shared the targets which suppliers accepted but even then, customers prefer to further wait to get better prices.

Raw material prices are continuously dropping down due to less demand all around the globe resulting in softened fabric prices.

Prices are further drop down about 3~4% during the week.

Suppliers are struggling hard to survive in absence of low demand.

Currently, suppliers are booked till early of Aug and offering mid-Aug onward deliveries.

A limited number of inquiries were exchanged by European and USA buyers during the week which seems only for price checking

Suppliers met with their regular customers during textile fairs held from the end of June like Heimtex, Technical textile, PV, and TW in Germany and Paris.

Customers have indicated that they will consider placing new orders only after their holidays from Sep onward by the time prices are expected to settle down at a certain level.

Wider width supplies are booked till the end of Aug ~ mid of Sep and offering onward deliveries.

Following are 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 1.45 – 1.47
16X12/108X56 63″  3/1 1.60 – 1.62
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.18 – 1.20


The 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 large volume business is not being placed due to high stock levels and recession around the globe. US big retailers have slowed down their goods lifting from factories and even have canceled some order quantities.

NYCF had a steep decline due to which local cotton is also on the decline, Yarn prices are also reducing and it will help in offering competitive prices. 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
demand is decreased all around the globe due to the worldwide recession.

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


The apparel industry in general is facing a hit due to global inflation and recession. Against this background, many large retailers have reduced their demand which directly affects the factory’s capacities. The inquiry flow is boring and slow, and in terms of order processing, the numbers are much lower. Many orders booked recently show a trend where orders are booked 30-40% less
than forecast.

Factories are fully booked until mid to late September and are offering later deliveries. The factories receive new developments for the next seasons, AW23 and SS23 from different customers. Commodity prices fluctuate daily, so garment manufacturers are also confused, as customers demand lower prices and the raw material is uncertain, so both factories and customers are waiting for the situation.


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 consumers. Further price fondness will be according to the demand and supply of different yarn counts which will lead to the price level.

The drastic drop in Local cotton prices completely changed the scenario as customers stopped buying in
anticipation of a further decline in prices.

In the coming weeks, it’s expected that the local fabric market may remain lackluster and dull however prices will remain soft due to the soft trend of raw material prices.

Export yarn market remained under sluggish tone as customers remained on the sideline of buying. The drastic drop in cotton prices completely changed the scenario as customers stopped buying in anticipation of a further decline in prices. However, some customers took advantage of sentiment and placed orders at very low prices to average out their old orders.

Moving forward: Business activity in Far Eastern, European, and the USA remained slow and dull. Prices are further dropped down by 3~4% during the week and are expected to remain soft in days to come in absence of less demand and a decrease in raw material prices.

For the apparel 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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