Market Report- Pakistan 16th August 2022


During the last week in the local cotton market, by the start of the week slow activity was seen, and later
showed improved activity due to the increase of prices internationally. Rains & floods hit the cotton belt which also created the uncertainty and fear that prices may rise in the coming days, among the buyers and they were keen to buy at these levels.

In the local cotton market, the price of cotton showed an upward trend trailed by international cotton prices, which showed an extraordinary rise in the last couple of days. Around 1,000 to 1,200 rs per bale increase was observed. The rate of cotton was Rs 16,500 to Rs 19,500 per maund. The price of Phutti is in between Rs 6,000 and 10,000 per 40 kg. KCA also rose in this week’s rs. 1,000 in and reached a level of Rs.18,000 per maund.

Internationally prices have recovered again after a hefty drop, Cotton prices in India have risen drastically in the last two weeks and once again breached the psychological figure. Cotton was sold at ₹100,000 per candy of 356 kg in upper Rajasthan today. Other regions of the country also witnessed a steep rise in prices due to the negligible availability of old crops and possible delays in new crops caused by heavy and late rains.

In this month’s 2022/23 U.S. cotton projections, beginning stocks are slightly larger, and a nearly 3-million-bale decrease in production results in lower exports, mill use, and ending stocks. Beginning stocks are larger as estimated exports for 2021/22 are reduced by 100,000 bales based on final Export Sales data and Census Bureau data through June.

NASS’s first survey-based estimate of production for 2022/23 is 12.6 million bales—the lowest since
2009/10—with the crop reduced by projected historically high abandonment in the Southwest. Exports are projected 2 million bales lower than in July and mill use is 200,000 lower.

Ending stocks are 600,000 bales lower, equating to 12.6 percent of expected use, 8 percentage points lower than in 2021/22, and the lowest stock/use ratio since 1924/25. The U.S. season-average price for upland cotton is forecast 2 cents higher this month at 97 cents/lb. Global 2022/23 production is forecast 3.1 million bales lower this month, and consumption is 800,000 bales lower, resulting in a decrease in projected ending stocks of 1.5 million bales. In addition to the U.S. crop change, world production is reduced an additional 100,000 bales as extreme heat in Uzbekistan reduced yield prospects there. World trade is 1.8 million bales lower this month, with reductions in U.S. exports and imports by China as the largest changes.

Projected imports are also lower this month for India, Pakistan, Vietnam, Turkey, and Bangladesh. The rate of cotton in Sindh is in between Rs 16,500 to Rs 17,200 per maund. The rate of Phutti as per quality is in between Rs 6,000 to Rs 7300 per 40 kg. In Punjab province, the price of cotton was Rs 16,500 to Rs 19,500 per maund, and the price of Phutti was Rs 7000 to Rs,10,000 per 40 kg.

The price of cotton was in between Rs 16,500 to Rs 19,500 per maund. The price of Phutti was in the range of USC 0.93~1.09 Lbs. (16,500~19,500/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 91.00 93.00 2.00
Highest 102.00 107.00 5.00


Crude Oil prices opened at USD 90.76 with a higher level as compared to last week’s closing figures.
In this week, crude oil prices showed an upward tendency, hence dropped on closing and closed on
upper side by the end of week.

In last day of the week, Crude Oil prices closed at USD 92.09 with an increase of USD 1.33 cents as of opening figure of week.

  Opening of Week Closing Of Week Change
Price 91.93 92.09 0.16


In last week values of the Pak rupee apricated against the US Dollar’s, and other major currencies showed mix trend in both interbank and open markets.

At the end of week, Euro closed on a positive note with the figure of 1.03 and British Pound also closed
on positive note with figure 1.21 against USD.

  Selling Buying
LC Sight 217.23 217.18
LC 120 Days 210.20 210.15
Open Market 221.14 216.27


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

NYCF marched upward side in 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 114.44 with an increase of 1286 of points.

On the last day of the week, DEC 2022 closed at 108.59 with an upward of 1300 points.

On the last day of the week, MAR 2023 closed at 105.64 with a rose of 1231 points.


Liverpool Index A was opened at 114.40 with a higher level than the previous week’s closing figure.

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

At last day of the week, LPI “A” closed at 119.20 with increase of 480 points.

  Opening of the Week Closing of the Week Change
Index A 117.20 119.20 2.00


The Local yarn market went firm by following NYCF and the local cotton market. The limited flow of inquiry witnessed resulted in a restricted business with sales pressure at these price points. Mills are carrying stocks and having cash flow problems. The raw cotton prices in the Global market are monitored by NYCF. On another side presently the acute compression of sales in the stimulating market is keenly expected if NYCF’s inclination is descending.

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 were unwavering by end of this week. For next week, PSF prices are expected to decline and Yarn prices are similarly projected to remain constant.

Faisalabad’s trading market has shown no movement. Limited sales of PV/Viscose yarns were reported cash flow head remains preoccupied. There is less demand in attaining further yarn 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 3068 – 3150 565 – 580
20/1 Carded Weaving 3096 – 3313 570 – 610
30/1 Carded Weaving 3313 – 3530 610 – 650
20/1 CM 3720 – 3829 685 – 705
30/1 PC Carded Weaving 52:48 2580 – 2797 475 – 515
40/1 Combed  Compact Weaving 4127 – 4236 760 – 780
60/1 Combed Compact Weaving 5702 – 5865 1050 – 1080
80/1 Combed Compact Weaving 8038 – 8282 1480 – 1525


Export yarn market remained under slow business activity once again due to increase in prices from suppliers.

Cotton prices in the international and domestic markets show an upward trend throughout the week. Moreover, USD against PKR kept on getting weak which also put impacted export yarn prices.

Suppliers increased their prices by 3-5% depending on counts and their sale position. However, they are
expecting betterment in prices in days to come.

USD is depreciating and it is expected that it will show more weakness in days to come.

Cotton crop damage is estimated to be big due to recent floods and viruses in fields. So, local cotton prices are continuously on the rise.

On the other side, customers shared good numbers of inquiries against which bids are also furnished. Orders are under discussion and we might see order confirmations in days to come after negotiations with suppliers.

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

However, as suppliers increased their prices so customers are not responding to high offers.

European customers floated good numbers of inquiries against which few orders for regular and specialized items were placed. Suppliers increased their prices and going forward, it seems customers will place orders with some negotiations in days to come.

Count USD / Bale
16/1 Carded Weaving 585 – 595
20/1 Carded Weaving 595 – 605
20/1 CM 635 – 645
16/1 CM 625 – 635
20/2 CD 670 – 675
24/2 CD 710 – 720


In local fabric market week opened after holidays with slow sentiments and closed with limited trading activity for both narrow and wider width fabrics.

Finishers and brands shared inquiries but those were just for price checking due to uncertain situation
prevailing in local and international cotton markets, therefore resultantly negligible business reported in
current week for both narrow and wider width fabrics after tough negotiations.

Though weavers are very eager to confirm orders but due to firm yarn prices they were unable to capture
floating orders.

Buyer are still bidding approximately 5% ~ 6% lower against offers due to which week closed with limited business materialization.

Weavers are under pressure and following available orders and currently booked in narrow till end August 2022 whereas they have coverage of their wider width looms till end of September~mid-Oct’22 and offering onward deliveries.

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 “S” TWILL PAK CTN 1.47 – 1.49
16X12/108X56 63″  3/1 1.62 – 1.64
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.22 – 1.23


Far Eastern customers have exchanged limited number of inquiries during the week.

Korean customers have booked some quantities for urgent delivery only. Average business activity was
witnessed from Bangladesh, Japan and China.

Asking prices were increased about 6~8% during the week due to strong local PKR against USD and continues rise in NYCF. 10~12% PKR strengthen against USD during last two weeks.

Raw material prices remained stable despite of low demand in the market.

Suppliers are booked till mid of Sep and offering onward deliveries.

Since most of the European customers are on summer holidays thus limited inquires were received by the suppliers.

Limited inquires were received from USA market as well.

Wider width suppliers are still struggling to enhance their sales position.

Currently suppliers are booked till end of Sep and offering October onward deliveries.

Suppliers are expecting good flow of inquiries towards end of this month as European customers will resume their work and will start placing orders.

Following were 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 1.65 – 1.67
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.20 – 1.22


In Home Textiles the general situation was quite slow. There are fewer inquiries in the market due to sluggish demand, and new order placements were also not seen in the market.

The trend will remain the same for the next few weeks as per the current situation and customers will keep reviewing all factors before placing some volumes due to the worldwide recession and hyperinflation. Even in the USA from where we expect volumes are silent, The U.S. Bureau of Labor Statistics Consumer Price Index for July 2022 showed that the all items index had no increase from June, but overall prices continued their inflationary track.

The Europeans are on holiday and it is expected that some new inquiries and order flow will be generated for the AW23 by the start of September. Overall 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 textile industry.


Pakistan’s garment sector has shown slight improvement in recent weeks and factories are now receiving good orders for the last quarter’s deliveries of 2022. The factories are pleased to receive the orders and presently they are focusing on delivering orders which were booked in the 2nd quarter of 2022.
However, the good thing is that the factories are receiving new developments for FW23 and SS23, which
shows a positive mood. However, the factories are fully booked until the Mid of October and are offering later deliveries.

On the other hand, the cotton market is very unstable, and customers are very confused when they make large placements and ask for discounts due to market instability. 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 upcoming market, it is appraised that local yarn prices will drive 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.

Significant increase was seen in prices locally and internationally in cotton front, in the previous week buyers were expecting that prices may drop further but this week showed upward behavior. Markets are really confused but local buyers are keenly interested to buy cotton on these levels in fear that the price may rise further. Local cotton arrival is improving day by day and buyers will keep buying to avoid loss as import of cotton will remain not feasible.

Local fabric market remained slow during the week. It is expected that market may remain range bound with limited trading activity.

The export yarn market showed a slow business activity due to a hike in cotton prices in domestic and
international markets. Few deals were closed at customer desired levels and it is expected that the next
placements will be done on slightly improved levels.

Average business activity was seen from Far Eastern, European and USA markets for export fabric.

Prices were increased about 6~8% due to strong PKR against USD.

Overall garment sector going towards betterment, and many customers are demanding sustainable products

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