Market Report- Pakistan 10th October 2022


During the last week in the local cotton market, moderate business activity was seen as buyers and ginners remained confused. Most of the buyers were focusing on the import of cotton, however, due to uncertainty USA sellers hold their sales. Local cotton quality is not too good which kept buyers away from buying.

In the local cotton market, the price showed a downward stable to firm trend due to the firmness in
international prices. The rate of cotton was Rs 17,000 to Rs 20,300 per maund. The price of Phutti is between Rs 6,500 and 10,000 per 40 kg. KCA also dropped rs. 200 and came at the level of Rs.18,800 per maund.

The local cotton market on Tuesday remained steady and the trading volume remained satisfactory. Cotton arrivals are falling, indicating that country will have to increase the size of cotton imports to meet the local demand shortly. Historically, there have been crashes or near-crashes in the equity markets during years past, but this one will be long remembered as cotton succumbed to more bearish pressure than any other commodity contract.

Pakistan Businesses Forum (PBF) said the country imported 3 million cotton bales last year and needs to import at least 5~6 million bales during the current fiscal year due to damage to the crop by recent floods. Current estimates of losses to the cotton crop due to floods are 3.5 million bales, accounting for 36 percent of the expected yield this year.

The State Bank of Pakistan states that imports will be released under Chapters 84-85 only to direct exporters and indirect exporters are neglected. This is a matter of grave concern as indirect exporters provide intermediate goods to exporters. Without these intermediate goods exports are now suffering and will drop significantly over time.

The weekly average was down from 89.25 cents last week and 105.00 cents reported in the corresponding period a year ago. Daily average quotations ranged from a high of 89.06 cents Tuesday,
October 4 to a season-low of 83.76 cents Thursday, October 6. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended October 6 totaled 2,964 bales. This compares to
2,198 bales reported last week and 9,616 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 29,230 bales compared to 55,504 bales the corresponding week a year ago. The ICE December settlement price ended the week at 82.90 cents, compared to 85.16 cents last week.

The rate of cotton in Sindh is between Rs 17,000 to Rs 19,000 per maund. The rate of Phutti as per quality is between Rs 6,500 to Rs 8,500 per 40 kg. In Punjab province, the price of cotton was Rs 17,500 to Rs 20,300 per maund, and the price of Phutti was Rs 7,500 to Rs,10,000 per 40 kg.

The price of Phutti was in the range of USC 0.94~1.12 Lbs. (17,000~20,300/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 91.00 93.00 2.00
Highest 107.00 110.00 3.00


Crude Oil prices opened at USD 83.63 a higher level compared to last week’s closing figures.

This week, crude oil prices marched upward thought the week and closed higher side by the end of the

On the last day of the week, Crude Oil prices closed at USD 92.64 with an increase of USD 9.01 as of the
opening figure of the week.

  Opening of Week Closing Of Week Change
Price 83.63 92.64 9.01


In the last week values of the Pak, and rupee appreciated 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 0.97 and British Pound also
closed on a negative note with a figure of 1.11 against the USD.

  Selling Buying
LC Sight 220.60 220.55
LC 120 Days 212.57 212.52
Open Market 224.42 219.48


New York Cotton futures opened lower on Monday than the previous week’s closing figures.

NYCF showed mix trend in the whole week, hence closing on an upward trend by the end of the week.

On the last day of the week, DEC 2022 closed at 84.23 with an increase of 3 points.

On the last day of the week, MAR 2023 closed at 82.66 with a rose of 47 points.

On the last day of the week, MAY 2023 closed at 81.51 with a higher of 73 points.

On the last day of the week, JUL 2023 closed at 79.94 with a surge up of 92 points.


Liverpool Index A opened at 103.80 a lower level than the previous week’s closing figure.

Index “A” showed a mixed trend this week, closing on the negative side by the end of the week.

On the last day of the week, LPI “A” closed at 101.30 with a decrease of 250 points.

  Opening of the Week Closing of the Week Change
Index A 103.80 101.70 -2.10


The local yarn market continued to measure & slow in business following local cotton and reduction in NYCF.

Asking prices dropped by Rs.7~10/lbs. in 100% cotton & Rs.4~5/lbs. in pc/CVC yarns. Mills were under sale pressure ready stocks are available on some counts. Buyers booked only essential yarn. The government fixed electricity cost tariff for the textile industry till June 2023 whereas buyers are in perceiving positions & NYCF follows the raw cotton prices in the Global market.

PSF prices were decreased by Rs.3/kg dated 3rd Oct 2022 by IFL in the domestic market. PTA and MEG prices remain soft in the international market plus the weakening of the US $ parity effect in Pak rupees on importing fiber. While crude oil prices were inflexible and uplifted by the end of this week. For next week, PSF prices are expected to decrease by Rs.5~7/kg.

Faisalabad trading market was slow and restricted movement was seen. The yarn was less in demand
inadequate sales of PV and Viscose yarns were reported. The cash flow crisis remains considerate. At the same time, Traders were influential 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 3364 – 3447 610 – 625
20/1 Carded Weaving 3474 – 3557 630 – 645
30/1 Carded Weaving 3640 – 3888 660 – 705
20/1 CM 3833 – 3998 695 – 725
30/1 PC Carded Weaving 52:48 2868 – 2978 520 – 540
40/1 Combed  Compact Weaving 4357 – 4550 790 – 825
60/1 Combed Compact Weaving 5708 – 6066 1035 – 1100
80/1 Combed Compact Weaving 8438 – 8548 1530 – 1550


The export yarn market remained almost silent mainly due to holidays in China.

Customers remained on the sideline and a limited number of inquiries were received.

Cotton prices in the international market remained under pressure which put impacted Pakistan prices as well.

As flood water is drowning and things are returning to a normal routine, the arrival of cotton is increasing. At the same time, the shortage of crops in Sindh province has further declined and it may have an impact on cotton prices in days to come.

It is expected that business activity will pick up in days to come as customers are now accepting the fact the prices are already touching rock bottom levels.

At the same time, slow demand from exporting countries is kept yarn prices under pressure.

In Pakistan, after the closure of many spinning mills, yarn supply is short due to which customers are buying available quantities to fulfill their orders.

Chinese customers remained on holiday and no such business activity was witnessed.

European customers floated a good number of inquiries. Some orders in normal and specialized yarns were also matured.

Count USD / Bale
16/1 Carded Weaving 570 – 580
20/1 Carded Weaving 580 – 590
20/1 CM 630 – 640
16/1 CM 620 – 630
20/2 CD 660 – 670
24/2 CD 700 – 710


The local fabric market remained dull and slow for another week for both narrow and wider-width fabrics.

Local Finishing mills remained sidelined throughout the week and only shared limited inquiries with small quantities and did not show any interest in buying at the current level. Spinners reduced their asking prices due to reducing in cotton prices. Market sentiments remained slippery throughout the week due to which buyers remained confused and resultantly dull activity was reported throughout the week.

Currently, weavers are booked in narrow width till 25th~end October and covered their wider width looms till End of October/early November’22 and offering onward deliveries. Weavers have coverage of their special looms till the end of November.

Construction Price US$/YD Ex Mill
16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN 1.71 – 1.73
20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN 1.56 – 1.58
20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN 1.28 – 1.30


A limited number of inquiries were received from Far Eastern markets. China remains closed due to holidays.

Suppliers are already offering their lowest possible prices which are less than their break-even level but even then it does not attract buyers.

Customers are expecting further drop down in prices as they said that current prices are still higher for them.

Suppliers have their sales for the next 2~3 weeks and struggling hard to extend their sales coverage.

The flow of inquiries from European markets was satisfactory however the limited business was reported.

Demand is still very slow and the situation is not improving. It may take further few weeks to have a better market situation.

Wider-width suppliers are offering very aggressive prices but still, they did not attract buyers due to slow
demand around the globe.

Suppliers are offering wider-width fabric for early ~ mid-Nov onward deliveries.

Following were the closing rates based on CNF Far Eastern markets.

Construction Price US$/YD CNF Far East
16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN 1.70 – 1.72
20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN 1.56 – 1.58
20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN 1.28 – 1.30


Home Textiles’ overall business activity is slow and new business are very limited in recent weeks. We are forecasting that this trend will continue till early next year but it is expected that business activity
will slightly improve in October / November.

Overall demand is on the slower side around the globe which is affecting business volume in Pakistan and as well as other regions around the globe that supply Home Textile products. Prices are also not stable due to fluctuations in Cotton, Rupee, and Yarn prices, many factories are closing their part operations to minimize the overhead costs. It is expected that prices will reduce in upcoming weeks due to the decrease in prices of NYCF and demand around the globe.


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

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 till mid-November and offering onward. Customers place orders, but only for important or urgent requests, the rest keep their orders on hold 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.


According to the recent PCGA study, this time cotton will be less than expected due to damage to cotton, to meet factory demand, factories have to procure NYCF which will be priced on par with local cotton due to a decline in NYCF prices and appreciation of PKR vs USD.

All textile industries are experiencing low business demand, and as a result, manufacturers are experiencing considerable operational losses due to which they are considering partial closure of factories.

Business activity is affected by inflation and the global economic downturn, while raw materials and dyeing supplies are also unstable. This pattern is expected to last through the first quarter of 2023.

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