Market Report- Pakistan 2nd January 2023


During the last week in local cotton, the business volume remained low, the prices remained relatively stable. In the hope of an increase in the price, ginners have started to sell cotton, cautiously. The reason behind the selling of Phutti by ginners is the delay in cotton shipments, due to which the price of cotton is stable. Several mills are making limited purchases as per their requirement. Hence its recession hit the millers /ginners and causing for a financial crunch.

In the local cotton market, the prices remained firm and steady in this week. The rate of cotton was Rs 15,500 to Rs 17,500 per maund. The price of Phutti is in between Rs 5,500 and 9,000 per 40 kg. KCA was the same without any change at the level of Rs.16,700 per maund.

Pakistan expects around 5 million bales in the current season and has to import 7~8 million more bales to cover the deficit, however around 5.2 million bales orders are already confirmed. Less business activity may drop consumption further in the day to come.

From the beginning of the New Year, the demand for textile products may also increase in Europe and America. The export of textile products in Europe and America has been very limited for almost two years after the Covid epidemic. However, now it is said that the stores there might start giving import orders for textile products, giving hope to exporting countries that severe recession may ease in the coming days and the dullness in the business may improve. The business scenario seems to be changing, slowly.

More than 99 percent of foreign firms surveyed in China expressed confidence in China’s economic outlook for 2023. About 98.7 percent of the firms stated that they will retain and increase their investment in China, according to a survey of more than 160 foreign firms, commerce chambers, and associations conducted by the CCPIT, the nation’s leading trade-facilitating body. Moreover, 89.8 percent of the firms in the survey revealed that they would maintain their local industrial chains, and 10.2 percent intended to shift overseas industrial chains to China.

The prices of raw cotton in India are currently at least 10-14 percent higher than prices in international markets, and this disparity is impacting the Indian textile industry. Stakeholders are therefore urging the government to remove the 11 percent import duty imposed on cotton to create a level playing field for the domestic industry.

The slowing of demand in export markets is another cause of worry for the Indian industry, especially the textile and apparel exporters. The industry is therefore looking towards the government for proactive support so it can face the twin challenge in the global market.

However, nowadays cotton yarn market noted better export demand after the recent drop in prices of cotton. There will be better prospects for cotton yarn in the days to come if domestic cotton prices remain steady. Cotton yarn prices eased down in as well in India.

Traditionally, Bangladesh has been more dependent on India for its yarn and fiber. However, owing to price dynamics, China has now emerged as a major yarn supplier to Bangladesh. On an annual basis, yarn exports from China to Bangladesh are increasing for the past few years, except for a dip registered in 2020 due to the COVID-19 pandemic.

The prices of cotton and cotton yarn witnessed an unprecedented rise in India and the global market this year. On the one hand, higher cotton yarn prices in India forced importers of Bangladesh to look elsewhere, while on the other, the US ban on cotton and cotton products originating from the Xinjiang region caused a decline in prices of yarn and fiber in China.

The rate of cotton in Sindh is between Rs 15,000 to Rs 16,500 per maund. The rate of Phutti as per quality is in between Rs 6,000 to Rs 8,000 per 40 kg. In Punjab province, the price of cotton was Rs 16,000 to Rs 17,500 per maund, and the price of Phutti was Rs 7,000 to Rs,9,000 per 40 kg.

The price of Phutti was in the range of USC 0.84~0.95 Lbs. (15,500~17,500/ maund).

  Opening Of the Week Closing Of the Week Change
Lowest 85.00 84.00 -1.00
Highest 95.00 95.00 0.00


Crude Oil prices opened at USD 79.53 a lower level as compared to last week’s closing figures.  In this week, crude oil prices showed a downward trend, hence rose on the last session and closed on the upper side by the end of the week.

On the last day of the week, Crude Oil prices closed at USD 80.26 with an increase of USD 0.73 cents as of the opening figure of the week.

  Opening of Week Closing Of Week Change
Price 79.53 80.26 0.73


In the last week values of the Pak, 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 1.07 and the British Pound also closed on a positive note with a figure 1.21 against USD.

  Selling Buying
LC Sight 225.04 224.99
LC 120 Days 215.52 215.47
Open Market 229.17 224.14


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

NYCF showed a downward trend this week, hence rose on closing but still closed on the negative side by the end of the

On the last day of the week, DEC 2022 closed at 83.37 with a decrease of 87 points.

On the last day of the week, MAR 2023 closed at 83.45 with a drop of 68 points.

On the last day of the week, MAY 2023 closed at 83.38 with a downward of 53 points.

On the last day of the week, JUL 2023 closed at 80.74 with a drop of 76 points.


Liverpool Index A opened at 101.55 a lower level of the previous week’s closing figure.

Index “A” remained closed this week due to holidays, dropped further in the last session, and closed on the negative side by the end of the week.

On the last day of the week, LPI “A” closed at 99.80, decreasing 175 points.

  Opening of the Week Closing of the Week Change
Index A 101.55 99.80 -1.75


The local yarn market went firm by following NYCF and the local cotton market asking prices were increased by Rs. 7~8/lbs. especially in cotton counts by the end of this week. Virtuous Inquiries from customers are materializing & business is done with mills on moral pitches. Spinning mills have no stocks but still have cash liquidity concerns. Sellers were apprehensive to hook the majority of orders. On the other hand, buyers were in observing situation to accept these fragments & the raw cotton prices in the Global market are followed by NYCF.

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

While crude oil prices depressed by the end of this week. For next week, PSF prices are expected to accelerate slightly increase.

Faisalabad’s trading market has prime sales of PV and Viscose yarns with an increase in prices. The cash flow crunch remains gripping. Other coarse counts remain in pressure with no demand & there is less order for getting further yarn. Traders were persuasive with their stocks and loom owners were in an inflexible position in yarn managing.

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 2800 – 2850 500 – 505
20/1 Carded Weaving 2850 – 2950 505 – 525
30/1 Carded Weaving 3150 – 3250 560 – 580
30/1 PC Carded Weaving 52:48 2480 – 2640 440 – 470
40/1 Combed Compact Weaving 3750 – 3850 665 – 685
60/1 Combed Compact Weaving 5100 – 5250 905 – 935
80/1 Combed Compact Weaving 7900 – 8200 1405 – 1460
40/1 CVC Carded Weaving 60:40 3120 – 3200 555 – 570


Export yarn market showed improved business activity during the week. Customers floated good numbers of enquiries against which order materialization was also improved as customers took interest to place orders.

Customers are now taking decisions considering that market has touched rock bottom levels. If we analyze the market over all, there has been good demand form customers after long time as it seems things are getting settled and customers are now expecting orders. Moreover, buying which was held against their book orders have also been started considering market has already its at bottom level.

At the same time, fabric business has also picked up which generated demand in domestic yarn market. Cotton prices are also stable and spinners have started buying cotton regularly now .

Chinese customers remained in market as Chinese Government has lifted all lock downs and also open traveling for foreigners form January 2023. Hence, these are good sign for Chinese business and it is expected that demand will accelerate in days to come.

Customers have booked handsome numbers of quantities and still inquiries are under discussions.

Count USD / Bale
16/1 Carded Weaving 535 – 540
20/1 Carded Weaving 545 – 550
20/1 CM 580 – 590
16/1 CM 570 – 575
20/2 CD 570 – 575
24/2 CD 590 – 600


In current week under review the local fabric market remained slow but after mid of week upward movement reported in terms of asking prices for both narrow and wider-width fabrics.

Local finishers unable to share bulk inquires and resultantly slow sentiments prevailed and limited order confirmation reported in the market. Buyers booked only urgent orders after tough negotiation close to their target prices. Finishing units are still targeting very low prices which are difficult to match resultantly slow sentiments but improved activity reported for both narrow and wider width fabrics.

Weavers are still desperate to confirm orders and following each and every inquiry for any reasonable bid. Currently, weavers are booked in narrow width till mid-Janurary’23 and have covered their wider width looms end January’23 and offering onward deliveries. Weavers have booked their special looms till mid of Feb.

Construction Price US$/YD Ex Mill
16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN 1.37 – 1.39
20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN 1.26 – 1.28
20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN 1.03 – 1.05


Far Eastern markets remained mixed as limited number of inquiries were exchanged by early of week however week closed with less buying.

Asking prices remained stable during the week.

Suppliers are booked till mid ~ 3rd week of Jan and offering end Jan ~ early Feb onward deliveries.

Limited number of inquiries were received from European and USA customers due to Christmas and New year holidays.

Wider width prices were same as of last week as there is no change in raw material prices.

Customers are preparing new developments for upcoming Heitex fair however most of the customers are not attending the fair.

Suppliers are expecting improved business activity after mid of Jan.

Suppliers are offering end Feb onward deliveries.

Construction Price US$/YD CNF Far East
16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN 1.34 – 1.36
20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN 1.22 – 1.24
20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN 1.00 – 1.02


In Home Textiles’ overall there was no business activity in this week and also the new placements were not seen in the market. We are forecasting that this trend will continue till early next year. Overall demand is on 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. The customers went on Christmas and New year holidays and will the business activity we will see is after Heimtextil.


Pakistan’s garment industry is going through a difficult period, with many factories having reduced production capacity and a lack of orders. Usually, factories have future projections but unfortunately, things have changed in the current scenario and they don’t have many projections to fill the factory capacity.

In general, it has been observed that many major retailers and brands have not been involved in building large allocations as in previous seasons, according to various sources the only reason for this is global inflation and lack of demand. At the same time, the prices for raw materials, dyes, and cotton fluctuate.

On the other hand, the factories have already received bulk orders for FW23 from different brands and are busy fulfilling
them, and in the future, they have received SS24 Development for the coming season, which bodes well for Pakistan’s textile industry. Factories are reserved until Mid February 23 and offer delivery after that.

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 demand from end customer leads to local yarn prices and remain under sale pressure due to fine mandate & oversupply. Further price liking will be according to the market and source of dissimilar yarn counts, leading to the price level.

Spot cotton trading was inactive. Supplies of available cotton and demand were light. Producers were waiting for prices to move higher before marketing the available cotton that remained in their hands. The business was slow due to abundant supplies of yarn and finished goods.

For coming weeks, we expect the local fabric market to remain range bound with the tendency of moving upward.

Export yarn market is moving towards betterment and it seems that there will be improvement in business activity in days to come. Customers are now placing orders and we might see good demand in days to come as well. Suppliers are taking sigh of relief after long silence and expecting betterment in price as well.

Slow demand was noticed from Far Eastern and European markets. Prices were same as of last week. Improved business activity is expected after mid of Jan.

Home Textiles business activity is nearly zero in this week and demand can only be determined after Christmas/ New year break, it is expected that this trend will be continued till early next year.

Only urgent orders were placed by the customer or the seasonal placements for garment. Overall recession kept the factories worried about how to fill their production space as they have fixed overheads. Things might get clear during the first quarter of 2023 depending upon demand from customers which will turn into final order placements with factories.

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