Market Report- Pakistan 8 May 2023

Pakistan Cotton Market:

During the last week, in the local market dullness prevailed and buyers didn’t show interest in buying due to the less availability of quality cotton and less demand.  Buyers are waiting for the new cotton arrival in the expectation that prices may down but it seems difficult due to the shortage of crops this year too.

New cotton arrival is expected from mid-May onward in Sindh and from early June in Punjab. So buyers will wait till the new crop comes, on the other hand, ginners are keenly interested to release their stock on these levels but buyers are away from the buying.

In a whole week the rate of cotton remained stable. The rate of cotton was Rs 18,000 to Rs 21,000 per maund (USC 0.77~0.90 Lbs.) in Punjab and Sindh. The price of Phutti is between Rs 8,500 and 9,000 per 40 kg. KCA was the same at the level of rs 20,000 per maund. PSF remained the same at the level of 375 PKR/kgs.

China cotton showed an upward trend due to the demand for textile products from China with local demand too, they also bought a handsome quantity from the USA. Indian cotton remained soft due to the less textile business.

Hight cotton prices have hurt the textile industry so much that industrialist is looking to alternative avenues to make the business viable. They are moving to polyester and viscose fabrics.

USA cotton sale remained good in the previous week, china, and Turkey was the topline customer and the USA also shipped around 4lakh bales by the week. Hence ICE cotton future remained on the same levels for many weeks and is expected the same in the coming days with minor /plus changes.  Hence, seems that cotton prices will remain the same at these levels in the coming days.

Opening Of the Week Closing Of the Week Change
Lowest 77.00 77.00 0.00
Highest 90.00 90.00 0.00

Crude Oil:

Crude Oil prices opened at USD 75.66 a lower level than last week’s closing figures.

This week, crude oil prices dropped and closed on the lower side by the end of the week.

In the last day of the week, Crude Oil prices closed at USD 71.34 with a decrease of USD 4.32 cents as of the opening figure of the week.

Opening of Week Closing Of Week Change
Price 75.66 71.34 -4.32

Exchange Rate:

In the last week values of the Pak, rupee deprecated against US Dollar, and other significant 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 1.12 and the British Pound also closed on a positive note with a figure 1.26 against USD.

Selling Buying
LC Sight 283.55 283.50
LC 120 Days 274.24 274.19
Open Market 287.09 280.91

New York Cotton Future:

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

NYCF dropped in the next two sessions and later showed an upward trend till closing with closure on the upper side by the end of the week.

On the last day of the week, MAY 2023 closed at 82.13 with an increase of 259 points.

On the last day of the week, JUL 2023 closed at 83.90 with an upward of 259 points.

On the last day of the week, OCT 2023 closed at 84.20 with a higher of 206 points.

On the last day of the week, DEC 2023 closed at 83.24 with a surge of 203 points.

Liver Pool Indices:

Liverpool Index A was opened at 91.45 on lower side from the previous week of closing figure.

In this week Index “A” showed mix trend and closed on higher side by the end of week.

At last day of the week, LPI “A” closed at 94.20 with increase of 275 points.

Opening of the Week Closing of the Week Change
Index A 91.45 92.95 1.50

Pakistan Yarn Market:

The local yarn market continued to be stable and firm in asking prices with average business activity by the end of this week following NYCF and the local cotton market. The majority of spinners send yarn to China to sustain sales, and China purchased Siro yarn in good quantities from Pakistan, driving prices up due to the rising NYCF. Additionally, vendors have hefty bank markups and don’t carry stocks, while purchasers are also having trouble making payments and settling accounts. Buyers were spotting & the raw cotton prices in the Global market are followed by NYCF

PSF prices continued stable in the domestic market during the last week ended. PTA and MEG prices remain indulgent in the international market plus the settling of the US $ parity effect in Pak rupees on importing fiber. At the same time, crude oil prices continued to be inflexible by the end of this week. For next week, PSF prices are expected to remain stable.

Faisalabad’s trading market has chief sales of PC and Viscose yarns. Good demand was seen with cash flow problems. Encounters with cash flow and financial constraints continue. The stock holdings of the traders were significant, and the managing of the yarn by the loom owners was inflexible.

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 3400 – 3550 480 – 500
20/1 Carded Weaving 3500 – 3700 495 – 520
30/1 Carded Weaving 3750 – 3950 530 – 555
30/1 PC Carded Weaving 52:48 3030 – 3180 425 – 450
40/1 Combed Compact Weaving 4300 – 4400 605 – 620
60/1 Combed Compact Weaving 5850 – 6150 825 – 870
80/1 Combed Compact Weaving 8000 – 8200 1130 – 1155
40/1 CVC Carded Weaving 60:40 3650 – 3900 515 – 550

Export Yarn Market:

The export yarn market showed good business activity and handsome inquiries were received. Customers have floated handsome numbers of enquiries against which order materialization was also good.

Cotton prices showed upward sentiment during the week in both USA and CHINA. This has given boost to prices of yarn and all suppliers have increased their prices upto 5-7%. Positively, customers also responded well in response and have increased their target prices to book orders. It is expected that market will remain firm and stable with good business activity.

As we have been explaining that cost of production has shown a sudden rise which is putting a significant impact on prices. At the moment, suppliers are trying to survive despite tough market conditions and trying their best to drag their losses to maximum time.

After the holidays in China, there was activity throughout the week, and floated a handsome number of inquiries with good bookings.

European customers remained silent and enquiries remained dull and slow.

Count USD / Bale
16/1 Carded Weaving 505 – 510
20/1 Carded Weaving 515 – 520
20/1 CM 535 – 540
16/1 CM 520 – 525
20/2 CD 540 – 545
24/2 CD 550 – 555

Pakistan  Fabric Market:

The local fabric market remained dull and limited activity was reported throughout the week for both narrow and wider-width fabrics.

Local finishers remained sidelined and did not share bulk inquiries due to which market sentiments remained slow and the week closed with limited trading activity.

Fabric prices remain firm due to the firm yarn prices. Buyers booked some orders after tough negotiations at slightly increased price levels as compared to before the Eid holidays.

Finishing units are still placing their maximum orders to their own weaving units owing to the unavailability of orders in the Market.

Major weaving mills are booked in narrow width till the end of May’2023 whereas they have coverage of their wider width looms till End-June’2023 and offer onward deliveries.

Weavers have coverage of their special looms till the end of June’2023.

Construction Price US$/YD Ex Mill
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 1.01 – 1.03

Export Fabric Market:

Slow market sentiment was seen during the week as no business activity was seen from Far Eastern markets.

Asking prices were same as of last couple of weeks due to stable raw material prices.

Narrow width suppliers are struggling hard to get orders but demand is very limited in Far East and Asian markets.

Good suppliers are booked till mid of June and offering end June onward deliveries whereas average suppliers have almost two weeks sales coverage.

European and USA buyers were quiet during this week after placing handsome orders during last couple of weeks mainly in wider width.

Wider width suppliers are somehow in comfortable zone as most of the suppliers are now offering end July onward deliveries.

Prices for wider width was same as of last week.

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

Construction Price US$/YD CNF Far East
16CDX12CD / 108X56 – 63″ 3/1 “S” TWILL PAK CTN 1.32 – 1.34
20CDX16CD / 128X60 – 63″ 3/1 “S” TWILL PAK CTN 1.20 – 1.22
20CDX20CD / 108X58 – 63″ 3/1 “S” TWILL PAK CTN 0.98 – 1.00

Bed Linen & Towels:

Home textile business is on slower side due to low activity from worldwide, it is expected that this trend will remain till Mid this year. Overall demand around the globe is on slower side which is effecting business volume in Pakistan and as well as other regions worldwide.

Raw material prices are also increasing due to depreciation of Pakistan Ruppee, factories are getting tough time in running factories due to low business volumes.


Overall, it is anticipated that Pakistan’s garment industry will continue to contribute significantly to the nation’s economy, despite potential obstacles posed by the industry’s need to adjust to shifting global market conditions.  The issues the Pakistani garment sector has encountered include growing costs, international competition, and shifting consumer tastes. But the sector has also made important advancements in modernization, quality improvement, and sustainability.

For new orders, factories are promising deliveries from July 2023 onwards. Additionally, factories are going through a difficult time right now since they can’t control their fixed costs.

Going Forward:

It is estimated that yarn prices and further business activity were cleared by the upcoming week. Further price fondness will be according to the market and source of distinct yarn counts, leading to the price level.

for the Local cotton, less business activity observed with the same prices range was the earlier week. No change is expected near soon, buyers are waiting for the arrival of new cotton to buy.

For the coming weeks, we may foresee slow market sentiments with limited trading activity for both narrow and normal wider-width fabrics in domestic market.

Export yarn markets remained under good business activity as customers have booked handsome quantity orders. We might see good business trends in days to come as market is expected to remain firm and stable.

Export fabric market remained dull during the week due to slow demand from Asia, Far East, Europe and USA. Prices were stable due to stable raw material prices. Suppliers are expecting improve business activity in days to come.

Pakistan’s garment industry has the potential to continue to grow and contribute to Pakistan’s economic development in the coming months.

It is expected that activity in Home textile will remain slow in this quarter of the year, and might improve after June/July 2023.

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