Market Report- Pakistan 31st October 2022


During the last week in the local cotton market, slow business activity was seen due to a downward trend
internationally in terms of demand and prices. Buyers were in a wait-and-watch mode in expectations that prices will remain soft in the coming days. Moreover, buyers are interested in the import of cotton which suits them as per the current market situation.

Ginners are worried now due to excessive stocks and a dropping trend in prices, they are hurry to sell but buyers are not available, only needy buyers are buying as per their requirements.

In the local cotton market, the price showed further downward caused by many factors as above. The rate of cotton was Rs 14,500 to Rs 18,000 per maund. The price of Phutti is in between Rs 6,500 and 95,00 per 40 kg. KCA also dropped rs. 500 and came at the level of Rs.16,500 per maund.

Cotton prices continued to decline. The international textile sector faces a severe recession. The local textile sector is also in a severe crisis. There will be a severe shortage of seeds for sowing cotton next year. Cautious buying of cotton by textile spinning mills was observed. Many ginners have stock of cotton which they could not sell at higher prices due to which there is uncertainty among the ginners.

Textile mills which had previously, bought cotton at higher prices, are now in trouble due to the fall in prices in local and international markets.

There is a recession in the local and international markets due to a decrease in the demand and prices of cotton yarn and textile products.

However, the textile sector is in a state of crisis due to the very low export of textile products. Currently, about 50 percent of the textile sector in the country is closed, and only some mills are partially running.

Similarly, the textile sector in India, Turkey, Bangladesh, and Vietnam is in crisis. If the same situation persists then it is expected that more mills will be closed down soon.

According to some cotton traders and processing enterprises in Xinjiang, affected by the fact that since mid-October, the main CF2301 contract plate price of Zhengzhou cotton fell from 13,975 Yuan/ton to 13,130 Yuan/ton.

The rate of cotton in Sindh is in between Rs 14,000 to Rs 17,000 per maund. The rate of Phutti as per quality is in between Rs 6,000 to Rs 7,500 per 40 kg. In Punjab province, the price of cotton was Rs 16,000 to Rs 18,000 per maund, and the price of Phutti was Rs 7,000 to Rs,8,500 per 40 kg.

The price of Phutti was in the range of USC 0.81~0.99 Lbs. (14,000~18,000/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 83.00 81.00 -2.00
Highest 99.00 99.00 0.00


Crude Oil prices opened at USD 84.58 a lower level than last week’s closing figures.

This week, crude oil prices showed an upward trend, hence dropping on last week’s session but accumulative closed on the upper side.

On the last day of the week, Crude Oil prices closed at USD 87.90 with an increase of USD 3.32 cents as of the opening figure of the week.

  Opening of Week Closing Of Week Change
Price 84.58 87.90 3.32


The last week’s value of the Pakistan 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 positive note with a figure of 1.00 and the British pound also closed on a positive note with a figure of 1.16 against the USD.

  Selling Buying
LC Sight 219.90 219.85
LC 120 Days 210.41 210.36
Open Market 224.07 219.14


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

NYCF rose the next day, later showing a downward trend in the whole week and closing on the lower side by the end of the week.

On the last day of the week, DEC 2022 closed at 72.11, decreasing 402 points.

On the last day of the week, MAR 2023 closed at 72.07 with a drop of 367 points.

On the last day of the week, MAY 2023 closed at 72.30 with a lower of 325 points.

On the last day of the week, JUL 2023 closed at 72.36 with a downward of 229 points.


Liverpool Index A opened at 95.00 a lower level than the previous week’s closing figure.

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

On the last day of the week, LPI “A” closed at 92.50 with a decrease of 250 points.

  Opening of the Week Closing of the Week Change
Index A 95.00 95.25 0.25


The Local yarn market remains cautious and slow in demand & business following NYCF and the local cotton market. Yarn Prices sank after a descent in NYCF and local cotton-limited business was seen.

Mills are carrying stocks and under sale, burden stocks were offered on significant counts by spinners and having cash flow problems. Sellers were eager to sell the yarn. Whereas buyers are in inaudible positions & NYCF follows the raw cotton prices in the Global market.

PSF prices stayed stable in the domestic market during the last week ended. PTA and MEG prices remain indulgent in the international market plus the waning of the US $ parity effect in Pak rupees on importing fiber.

At the same time, crude oil prices stayed uncompromising by the end of this week. For next week, PSF prices are predicted to decrease by Rs.2~4/kg.

Faisalabad trading market was sluggish and no business was seen. The yarn was not as much in demand and had no substantial sales of PV and Viscose yarns. The cash course disaster remains thoughtful. At the same time traders were swaying with their stocks.

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 3271 – 3353 595 – 610
20/1 Carded Weaving 3381 – 3463 615 – 630
30/1 Carded Weaving 3546 – 3793 645 – 690
20/1 CM 3738 – 3903 680 – 710
30/1 PC Carded Weaving 52:48 2776 – 2886 505 – 525
40/1 Combed  Compact Weaving 4261 – 4453 775 – 810
60/1 Combed Compact Weaving 5607 – 5965 1020 – 1085
80/1 Combed Compact Weaving 8329 – 8439 1515 – 1535


The export yarn market showed lackluster business activity due to a lack of demand.

Customers floated limited numbers of inquiries against which order materialization was minimal.

Cotton prices in the international market remained bearish which put an impact on Pakistan prices as well.

Suppliers are very aggressive in presence of any firm bids/targets and discuss every possibility to catch orders.

Customers are now sharing some firm demands and prices are under negotiation with suppliers. So, we might see placements after negotiations of prices.

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

Pakistani suppliers are trying to restart the production that closed earlier but the market is not supporting them due to slow demand.

Chinese customers remained on the sideline and very limited business activity was witnessed.

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

Count USD / Bale
16/1 Carded Weaving 560 – 570
20/1 Carded Weaving 570 – 580
20/1 CM 620 – 630
16/1 CM 610 – 620
20/2 CD 650 – 660
24/2 CD 690 – 700


The global recession is hitting badly. Many customers from Korea, China, Bangladesh, and Vietnam are
operating at about 50~60 % of their capacities hence they are not in demand nowadays.

Most of the suppliers in Pakistan and India are also forced to slow down their operations / partially close down their productions.

A limited number of inquiries are available in the market and suppliers are chasing each and every inquiry aggressively.

Suppliers are offering prices lower than their break-even which means that they are selling fabric at loss just to run their looms / recover their fixed expenses. Surly this cannot lead to a run for a longer time as the market needs to settle down somewhere and demand may start rising after a couple of weeks.

Delivery lead time is not an issue nowadays as customers can get their desired shipment depending on the availability of yarn.

Improved business activity was seen from European markets as some demand arises from Germany, Italy, and Spain.

Suppliers are offering very aggressive prices for wider widths as it is the need of the time.

Customers are bidding about 8~10% from the asking prices and suppliers are somehow managing customer target prices to extend their sales as long as possible.

Wider width delivery is also not an issue as it can be possible within 30~40 days however stripe satin, and dobby looms are in the comfortable zone.

Following are the closing rates based on CNF Far Eastern ports.

Construction Price US$/YD Ex Mill
16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN 1.50 – 1.52
20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN 1.40 – 1.42
20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN 1.18 – 1.20


Home Textiles’ overall business activity is slow and new business are very limited in recent weeks.
European customers have started sharing inquiries and it is expected that some business activity will be done in November. US customers also started sharing a few order opportunities. We are forecasting that this trend will continue till early next year but it is expected that business activity will slightly improve in 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.


We have seen some slow activity in the apparel industry over the past few weeks. Many factories are reducing their production capacity as global inflation has hit factories across the board due to lower demand and order cancellations.

To date, the factories are operating at 60% capacity and are awaiting more orders to keep operations running due to fluctuations in the cotton and yarn markets they are unable to understand the exact situation. Factories are offering End November onward deliveries, and on the other hand, customers are also waiting and seeing the conditions until the market stabilizes.

Some factories have already received bulk orders for SS23 of different brands and will receive them in the future FW23 development for the upcoming season, which bodes well for the Pakistani textile industry.

Sustainability remained an important element as most customers, particularly large global brands, demanded environmentally 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 have shown interest in garments made from special fibers and structured fabrics.


The market remained dull and slow and faced the same crisis in all textile segments; buyers are not showing interest in buying. Whereas recession hitting badly consumer textile products. It seems that international prices will drop further as well as the prices in the local market.

Demand is shrinking and it is difficult to meet factory capacity based on the current order intake. Suppliers are very aggressive to catch orders and discussing every single possibility to confirm.

About the upcoming weeks, the overall situation is slow in all textile categories, it is expected that this trend will be continued till Quarter 1 of 2023.

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