Market Report- Pakistan 12th September 2022


During the last week in the local cotton market, improved business activity was seen in the local cotton market, due to the rising trend of the dollar which may difficult the imported cotton. Shortage of cotton and sale held by farmers/ginners also put uncertainty in the market due to which needy buyers bought cotton at high prices.

Textile finish product orders are slow down worldwide due to which slow cotton buying was observed. still, buyers are confused about the cotton prices internationally which are behaving unusually. Stability of prices is much required to smooth business.

In the local cotton market, the price of cotton increased rs. 3000~3500 rs per maund due to demand and less availability of cotton. The rate of cotton was Rs 19,000 to Rs 23,500 per maund. The price of Phutti is in between Rs 8,500 and 10,500 per 40 kg. KCA also increased in this week’s rs. 2,500 and reached a level of Rs.22,500 per maund.

The farmer & Middle Man is holding Phutti, because they understand that cotton is short in the country and the demand may rise, due to which the price of cotton is strong. Putti is especially strong in Punjab. The gates of 50 cotton factories that were closed due to rains and floods in Sindh have been opened and more are opening.

Sindh cotton factories are also buying Phutti from Punjab. 30% of the cotton factories have been shut down, while the cotton factories that are running are also running only one shift of 8 hours, due to which the production is slow. Is And demand and supply has become strong factor causing the mills in Punjab to pay higher prices, forcing the needy mills to buy while the larger groups routinely buy from Punjab at higher prices.

Pakistan’s Finance Minister Miftah Ismail indicated on Monday that the India-Pakistan cotton trade will be open, but no formal approval has been revealed so far. But as Pakistan has run out of cotton, the Pakistan-India cotton trade should be opened immediately to support Pakistan’s largest export sector, textiles.

To improve Pakistan’s textile exports, the production cost of the textile sector must be reduced by at least 20%. If the government removes the sales tax for some period and gives a 15% subsidy on textile export, the textile sector may start again.

India’s yarn market continued to see a downward trend. Cotton yarn prices further eased down. But traders expect that the market will bottom out very soon and buyers in the entire value chain will come back for restocking at lower and attractive prices. Higher cotton prices may also improve market sentiments.

The rate of cotton in Sindh is between Rs 19,000 to Rs 23,000 per maund. The rate of Phutti as per quality is in between Rs 9,500 to Rs 11,500 per 40 kg. In Punjab province, the price of cotton was Rs 19,000 to Rs 23,500 per maund, and the price of Phutti was Rs 10,500 to Rs,12,000 per 40 kg.

The price of Phutti was in the range of USC 1.04~1.28 Lbs. (19,000~23,500/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 106.00 103.00 -3.00
Highest 125.00 128.00 3.00


Crude Oil prices opened at USD 86.88 almost the same level as compared to last week’s closing figures.

In this week, crude oil prices showed dropped the next day and later showed an upward trend till closing, hence closing on the slightly lower side by the end of the week.

On the last day of the week, Crude Oil prices closed at USD 86.79 with a decrease of USD 0.09 cents as of the opening figure of the week.

  Opening of Week Closing Of Week Change
Price 86.88 86.79 -0.09


Last week values of the Pak rupee deprecated 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 1.02 and British Pound also closed on a positive note with a figure 1.16 against the USD.

  Selling Buying
LC Sight 224.12 224.07
LC 120 Days 216.01 215.96


New York Cotton futures opened with a slight level on Monday as compared to the previous week’s closing figures.

NYCF dropped in one session only, hence showed an upward trend in a whole week and subsequently closed on the positive side by the end of the week.

On the last day of the week, OCT 2022 closed at 109.52 with an increase of 123 of points.

On the last day of the week, DEC 2022 closed at 104.84 with an upward of 129 points.

On the last day of the week, MAR 2023 closed at 101.45 with a rose of 107 points.

On the last day of the week, MAY 2023 closed at 99.28 with a surge up of 71 points.


Liverpool Index A was opened at 136.60 with a lower level than the previous week’s closing figure.

In this week’s Index, “A” showed downward sentiment and closed on the negative side by the end of the week.

At the last day of the week, LPI “A” closed at 120.15 with a decrease of 1645 points.

  Opening of the Week Closing of the Week Change
Index A 136.60 120.15 -16.45


The local yarn market departed firm and steady in asking prices. Good activity was seen in business.

Yarn rates are firm due to the US dollar & NYCF. Buyers covered yarn till October/November due to a US $ hike and shortage of deliveries from spinners. Most mills are closing productions and no equipped stocks are available.

The raw cotton prices in the Global market are followed by NYCF. On another side presently the desperate pressure of sales in the stimulating market is intently expected if NYCF’s leaning is downward.

PSF prices continued stable in the domestic market during the last week ended. PTA and MEG prices were similarly descending in the international market while crude oil prices were also weakening by end of this week.

For next week, PSF prices are expected to decrease by Rs.3~4/kg & yarn rates of PC/CVC are also augmented.

Faisalabad trading market was again sturdy and partial activity was seen. The yarn was less in demand Limited sales of PV and Viscose yarns were reported. The cash flow crunch remains thoughtful. Traders were in selling their stocks and loom owners were in a challenging position in yarn buying due to an increase in electricity and other outlays.

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 3390 – 3502 605 – 625
20/1 Carded Weaving 3502 – 3670 625 – 655
30/1 Carded Weaving 3810 – 3978 680 – 710
20/1 CM 4118 – 4230 735 – 755
30/1 PC Carded Weaving 52:48 2773 – 2886 495 – 515
40/1 Combed  Compact Weaving 4650 – 4735 830 – 845
60/1 Combed Compact Weaving 5995 – 6191 1070 – 1105
80/1 Combed Compact Weaving 8461 – 8573 1510 – 1530


Export yarn market remained under dull and slow with very limited business activity.

Cotton prices in the international and domestic markets remained firm and stable and didn’t show any major movement.

Pakistan is still going through a tough phase in flood areas which has also damaged different crops including cotton.

This has created a shortage of cotton crops in the country as arrival is slow as well as transportation is stuck as well. Many highways are affected due to flood which has stopped transportation in Punjab and Sindh province.

It is expected that situation will get better in another 2 weeks’ time and the situation will get clear by end of September.

At the same time, high prices of cotton and very low price of yarn has forced many spinners to close their
factories. With every single day passed, spinners are cutting down their production or closing their factories.

If we analyze the ongoing situation, this will create a shortage of yarn supply in the market. Already local prices are improved as customers are left with very limited options for Yarns.

Spinning mills are trying to sell maximum quantities in the local market due to better prices as the export market price is still 8-10% lower than the domestic market. It seems that export business with remain under turbulence until customers increase their prices or cotton price show handsome drop. So, things will get clear by end of September/ early October.

Chinese customers remained slow throughout the week. The major reason was the continuous depreciation of RMB against USD which has made imports expensive. Bids are there but no supplier in Pakistan is showing interest to place orders at such prices.

European customers floated very good numbers of inquiries after coming back from holidays. However, orders are not yet matured because of the wide gap between asking and bidding prices. A tug of war is going on between supplier and buyer and we may see some payments in weeks to come with some better prices.

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 – 680
24/2 CD 710 – 720


The local market remained slow and limited activity observed throughout the week for both narrow and wider width fabrics.

Local buyers remained confused due to volatility of cotton and yarn market and also low fabric demand from end customers and resultantly negligible business materialization reported in the market. Though weavers are following inquiries but due to low bids from customers they are unable to materialize the available business and resultantly week closed with limited trading activity. Though weavers increased their asking prices but buyers are not ready to absorb it.

Currently, weavers are booked in narrow width till end September’2022/early October and covered their wider width looms till Mid October’22 and offering onward deliveries.

Construction Price US$/YD Ex Mill
20CDX16CD/128X60 –  63″  3/1 “S” TWILL PAK CTN 1.53 – 1.55
16X12/108X56 63″  3/1 1.68 – 1.70
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.26 – 1.28


Mixed trading activity was observed from Far Eastern markets. Few deals were materialized by Japan, China and Bangladesh.

Korean customers have exchanged limited inquiries resultant limited business with some selected suppliers at increased prices of 2% compared to last week prices.

Yarn prices were increased about 4~5% during this week however fabric prices remained stable as it
compensated PKR depreciation against USD. Suppliers are offering mid Oct onward deliveries.

European customers have resumed their offices and exchanged healthy inquiries however they could not
decide to place orders.

Energy prices have increased too much in European countries thus they are evaluating either to place grey fabric or PDF, PFP.

Some of the customers have started checking prices in PDF, PFP instead of grey fabric.

Wider width fabric suppliers are offering end Oct onward deliveries.

USA market is still quite as no considerable activity was observed during the week.

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 1.52 – 1.54
16X12/108X56 63″  3/1 1.66 – 1.68
20CDX20CD/108X58 63″  3/1 “S” TWILL PAK CTN 1.25 – 1.27


Home Textiles industry is going through lean patch and new business opportunities has decreased in recent weeks. Inquiry flow has increased in recent week and it is expected that some business opportunities will be created in end September and early October. Demand is on low side worldwide which is effecting all factories in Pakistan.

NYCF is being stable last week, whereas local cotton is on higher side so price levels are on higher side for finished product in Pakistan.

There is a financial crunch in industry and it is also effecting payments transition, it is badly hurting small factories and this can cause closure of factories.


The garment industry has shown normal activity in general, in which the materialization of orders and
inquiries has been much lower, and it seems that due to the fluctuations in raw material prices, this will slowly affect the garment industry, as well as cotton and other dyeing materials suffer.

It is known from various sources that many factories are operating under capacity and are striving to attract new orders to fill their factory capacity. They are currently booked through mid-November and will be offered after that. Customers place orders, but only for important or urgent requests, the rest keep their orders until the situation is clarified.

However, customers are anticipating new developments as several brands place seasonal developments for AW23, half of which have been delivered, and orders are expected by the end of this year 2022, or early 2023.

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 assessed that yarn prices will lead to local cotton prices and international trends of NYCF, and demand from the end users. Further price liking will be according to the market and supply of different yarn counts, leading to the price level.

In this week, local market prices showed an upward trend with a firm pace of activity. Needy buyers bought cotton to cover their requirements, hence leading buyers are still out of the market and waiting to settle their market position. The rising trend of dolor worldwide and shortage of cotton also putting influence NYCF also not behaving well and uncertainty is around the globe due to wide fluctuation in prices.

For coming weeks, we expect slow sentiments to prevail owing to low demand from end customers for local fabric.

The export yarn market showed slow business activity due to high cotton prices and low yarn prices in
comparison. Customers are still resisting high offers from suppliers but there is no flexibility from the suppliers’ end as well due to heavy losses on current cotton rates. We mish see a settlement in prices in a couple of weeks and business will start to conclude.

Mixed trading activity was observed in export fabric markets. Far Eastern customers have booked some urgent orders with increase prices about 2% compared to last week. European customers have checked prices for various items and evaluating either to place grey or PFD, PFP fabric.

We don’t have a very healthy activity in Pakistan’s garment industry, but the expected situation might change once the raw material stabilizes and global dependency increases.

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