Market Report- Pakistan 2nd August 2022


During the last week in the local cotton market, activity remained low due to the rain spell around all the cotton-producing areas. The picking of cotton is decreasing and the quality of cotton is also affected, but due to the increase in the rate of the dollar, the import of cotton is also becoming more expensive, so the spinning mills are forced to buy low-quality cotton at high prices from the domestic market.

In the local cotton market, the price of cotton fluctuated by Rs 17,000 per maund in two months since the beginning of the new season. The rate of cotton was Rs 22,500 to Rs 23,000 per maund at the start of the season which after decreasing reached the lowest level of Rs 13,000 to 13,500 per maund before Eidul Adha. However, afterward, it increased by Rs 7,000 per maund and reached the highest level of
Rs 20,000 per maund due to an increase in the rate of the dollar and rains.

The price of Phutti is between Rs 5,000 and 10,000 per 40 kg. The price of cotton per maund is Rs. 20,000. Due to an increase in the exchange rate of dolor KCA increased by rs.1200 this week and reached a level of Rs.19,200 per maund.

The sowing of cotton crop 2022-23 season in Punjab is at the final stage whereas sowing in Sindh has been completed. According to the first estimate report, the cultivated area of cotton was recorded at 1.485 million hectares which comprise 81.5 % of the target and about 16.1 % higher than the previous year.

However, the sowing area in Sindh was registered at 0.517 million hectares comprising 80.8 % of the target and about 13.0 % less than the previous year. The total cultivated area of both provinces placed at 2.002 million hectares which shows 81.4 % against the target and an increase of 6.9 % as compared to last year.

There was a tendency of increasing the price of cotton in the international cotton markets. The rate of Future Trading of New York cotton after increasing reached 96.74 US cents per pound. According to the USDA’s weekly export and sales report, sales for 2021-22 were 4,000 bales, significantly lower than last week. Vietnam took first place by purchasing 6,400 bales. Ecuador came in second with 700 bales. Japan was third with 400 bales.

The rate of cotton in Sindh is between Rs 18,500 to Rs 19,200 per maund. The rate of Phutti as per quality is between Rs 4500 to Rs 6500 per 40 kg. In Punjab province, the price of cotton was Rs 19,800 to Rs 20,200 per maund, and the price of Phutti was Rs 8,500 to Rs10,000 per 40 kg.

  Opening Of the Week Closing Of the Week Change
Lowest 88.00 97.00 9.00
Highest 93.00 102.00 9.00


Crude Oil prices opened at USD 96.70, higher than last week’s closing figures.

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

On the last day of the week, Crude Oil price closed at USD 98.62 with an increase of USD 1.92 as of the
opening figure of the week.

  Opening of Week Closing Of Week Change
Price 96.70 98.62 1.92


Last week’s values of the Pak rupee deprecated against US Dollar, and other significant currencies showed a mixed trend in interbank and open markets.

At the end of the week, Euro closed on a positive note with a figure of 1.02 and the British Pound also closed on a positive note with a figure of 1.22 against the USD.

  Selling Buying
LC Sight 238.55 238.50
LC 120 Days 229.95 229.90
Open Market 242.80 237.50


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

NYCF showed upward sentiment this week and closed on the positive side by the end of the week.

On the last day of the week, OCT 2022 closed at 103.13, increasing 561 points.

On the last day of the week, DEC 2022 closed at 96.74 with an upward of 568 points.

On the last day of the week, MAR 2023 closed at 93.51 with a rose of 615 points.


Liverpool Index A was opened at 127.20 with a lower level than the previous week’s closing figure.

In this week’s Index, “A” showed an upward trend and closed on the positive side by the end of the week.

On the last day of the week, LPI “A” closed at 131.40 with an increase of 420 points.

  Opening of the Week Closing of the Week Change
Index A 127.20 131.40 4.20


The Local yarn market remains firm and sturdy by following NYCF and the local cotton. Prices were increased due to the US $ Upwelling & NYCF increasing trend. Yarn prices were increased by 10~15 % from last week’s offers. Course counts are under pressure & Mills are carrying stocks and having cash flow problems. Sellers were captivated by selling the yarn. Whereas buyers are in spotting situations & the raw cotton prices in the Global market are followed by NYCF.

PSF prices were increased by Rs.5/kg dated 25th July 2022 by IFL in the domestic market. PTA and MEG prices were similarly descending in the international market while crude oil prices leaped by end of this week. For next week, PSF prices are expected to increase by Rs.4~5/kg & yarn rates of PC/CVC remain stable as well.

Faisalabad trading market average activity was seen. Sales of fine counts yarns were reported as periodic orders of PV/Viscose yarn started fine counts were also in demand and virtuous deals were made. Whereas Traders were persuasive with their stocks & management.

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 3191 – 3280 535 – 550
20/1 Carded Weaving 3250 – 3429 545 – 575
30/1 Carded Weaving 3429 – 3698 575 – 620
20/1 CM 3757 – 3936 630 – 660
30/1 PC Carded Weaving 52:48 2714 – 2922 455 – 490
40/1 Combed  Compact Weaving 4234 – 4413 710 – 740
60/1 Combed Compact Weaving 5815 – 6083 975 – 1020
80/1 Combed Compact Weaving 8290 – 8528 1390 – 1430


The export yarn market remained under slightly improved business activity as customers have shown interest in buying.

Customers floated good numbers of inquiries against which orders were closed as well. Mainly deals were closed where customers got their required prices.

Suppliers are very flexible and tried their best to catch orders in presence of firm bids.

Although cotton prices improved both in domestic and international markets, suppliers remained active in catching orders.

At the same time, USD appreciation supported suppliers and took a position in anticipation of a strong USD.

It is expected that yarn prices will stay at current levels as it has already touched rock bottom levels.

Suppliers are aggressively buying cotton and this has given a boost to cotton prices.

Moreover, there is a serious flood in the cotton belt due to heavy rains and this is having an impact on prices as well.

Chinese customers remained in the market and some business was confirmed at customers’ desired levels.

European customers floated good numbers of inquiries against which few orders were placed. Suppliers floated very attractive prices and those customers who took decisions at right time got attractive options.

Count USD / Bale
16/1 Carded Weaving 575 – 585
20/1 Carded Weaving 585 – 595
20/1 CM 670 – 680
16/1 CM 660 – 670
20/2 CD 635 – 645
24/2 CD 670 – 680


The local fabric market remained sluggish and the week closed with limited activity in the local cotton market for both narrow and wider width fabrics.

Finishers remained sideline and shared limited inquiries till mid of week but after mid of week improved flow of inquiries was noticed however, the week closed with limited business materialization for both narrow and wider width fabrics.

Though the steep rise in cotton and yarn prices stunned the market players still buyers are bidding low which is approximately 4% ~ 5% due to which slow business activity was reported.

Currently, weavers are booked in narrow width looms till the 3rd week of August 2022 and booked 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 1.45 – 1.47
16X12/108X56 63″  3/1 1.60 – 1.62
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.20 – 1.22


Limited inquiries were exchanged by Far Eastern customers resulting in the average business being noticed.

Customers have placed a few orders at 6~8% lower than the offered prices.

There are still a good number of inquiries from the Bangladesh market but their targets are lower about 10~12% than the offered prices which are difficult to manage.

Yarn prices are getting firm every day by following the exchange rate of Pak rupees vs US Dollar however
appreciation of US. Dollar compensated when selling the fabric into the export market.

Suppliers are following every order aggressively due to fewer orders in the market.

Currently suppliers are booked till the end of Aug and offering mid-Sep onward deliveries. Some of the suppliers are still offering 3rd week ~ End Aug onward deliveries as they can start production within a couple of days from the order confirmation.

Limited inquiries were received from European and USA customers resultant limited booking in the market.

Most of the European customers left for summer holidays and some of them are planning holidays from the end of July hence they are not interested to discuss new orders at the moment.

Wider-width suppliers are chasing every order due to less demand. Suppliers for wider width are booked till mid ~ end of Sep and offering onward deliveries. Some of them are still offering end Aug ~ early Sep onward deliveries.

Construction Price US$/YD CNF Far East
20CDX16CD/128X60 –  63″  3/1 “S” TWILL PAK CTN 1.40 – 1.44
16X12/108X56 63″  3/1 1.56 – 1.58
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.16 – 1.18


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.

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. Europeans are on holiday and it is expected that new inquiries and order flow will
increase from the end of August onwards.

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


In general, the apparel 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 Sep/Early Oct-22 and they are offering deliveries onward. On the other hand, factories are working with their 40-50% capacities only.

Sustainability remained an important element as most customers, particularly the world’s leading brands, demanded eco-friendly products. Pakistani garment factories have all the necessary facilities and
compliance requirements to meet the demands of the customers. In addition to sustainable products,
customers are showing interest in garments made from specialty fibers and structured fabrics.


About the upcoming market, it is estimated that local yarn prices will drivel to local cotton prices and
international trends of NYCF, and demand from the end consumers. Further price liking will be according to the demand and supply of different yarn counts which will lead to the price level.

A significant increase in the rate of the local cotton market was observed, and the rainy season put uncertainty among the buyers. Increase in the rate of the dollar, the import of cotton is also becoming more expensive, so the spinning mills are forced to buy low-quality cotton at high prices.

Moving forward we expect that the local fabric market may move sideways.

The export yarn market showed betterment in business activity as compared with the previous week. We
might see more placements as customers are getting active in buying and placing orders.

Export fabric prices are expected to remain stable even if the raw material prices are getting firm however business activity may remain slow due to less demand in the market.

The garment industry is under pressure and the 3rd quarter of this year 2022 will be tough for garment

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