The global cotton market has recently been experiencing significant volatility, with Pakistani cotton prices experiencing a dramatic plunge, triggering a deep crisis within the industry. This trend has not only impacted the local textile industry but also had far-reaching implications for the global supply chain, leading to widespread market concerns.
Over the past week, domestic cotton prices in Pakistan have plummeted by 500 rupees per maund, plummeting to 15,500 rupees per maund. According to regional quotations, cotton prices in Sindh Province have fallen to 14,800-15,300 rupees per maund, while those in Punjab have plummeted to 14,750-15,300 rupees per maund. Faced with this drastic market fluctuation, the Karachi Cotton Association was forced to lower its official spot price to 15,100 rupees per maund.
This price plunge is causing deep concern within the industry. The latest data from the Cotton Ginners Forum indicates that the continued slump in domestic and international cotton markets has severely impacted the entire supply chain, forcing several textile and ginning mills in Pakistan to halt operations. Many ginning mills fear they may face significant financial losses again this crushing season, raising concerns about the industry’s outlook.
As of September 30th, Pakistan’s cotton imports surged 40% year-on-year, with large quantities of low-priced imported cotton flooding the domestic market, further depressing local cotton prices. Cotton arrivals are expected to remain high over the next two weeks, further increasing supply pressure. Ehsanul Haq, Chairman of the Cotton Ginners Forum, stated that Pakistan’s high energy tariffs and interest rates have severely weakened the competitiveness of textile exports, plunging the entire cotton industry into crisis. He urgently called on the government to prioritize supporting local industries and effectively reduce production costs.
Industry experts point out that lint cotton prices have not fallen proportionally with raw cotton prices, placing additional pressure on ginners. Unless energy costs are quickly reduced and production efficiency improved, the cotton industry could face severe consequences, including large-scale production closures.
Global markets are resonating, with Chinese cotton prices also under pressure.
Cotton markets around the world are facing similar challenges, not just in Pakistan. The Chinese market is also weak, with the main Zhengzhou cotton 2601 contract fluctuating within a narrow range of 13,225-13,315 yuan/ton, ending the day slightly lower and trading volume significantly reduced.
With the orderly progress of harvesting and delivery in Xinjiang’s main cotton-producing areas, ginning mills are processing more lint, ensuring ample market supply and halting the decline in domestic commercial inventories. However, downstream demand remains sluggish, with textile companies receiving few new large orders and focusing on short-term, sporadic orders. Furthermore, finished product prices are under pressure, leading to poor business conditions and a contraction in cotton consumption.
The overseas market is equally bleak. The US government shutdown continues, and key industry data, including the USDA’s monthly supply and demand report, has not been released. Trade tensions are lingering concerns about demand, putting downward pressure on ICE cotton futures. The most actively traded December cotton futures contract fell 0.39% to settle at 63.59 cents per pound.
Short-term volatility, medium- to long-term weakness
Zhengxin Futures analysis indicates that although domestic cotton inventories are currently low, the continued arrival of new cotton, coupled with weak downstream demand, is exerting significant pressure on domestic new cotton prices. The market needs to closely monitor the pace of new cotton arrivals and downstream inventory replenishment. Cotton prices may fluctuate in the short term, but will remain weak in the medium and long term due to the pressure of bumper harvests.
The Pakistani cotton crisis is sounding the alarm for the global textile industry. In the context of globalization, market fluctuations in any major cotton-producing country will have a ripple effect. For Chinese companies, it is particularly important to closely monitor international cotton price trends, seize purchasing opportunities, and optimize inventory structures. Only by accurately grasping the market pulse can they remain invincible in the fierce market competition.
Huaian Good Life Textile Co., Ltd. is one such Chinese company. We specialize in the production of textiles in a variety of fabrics, with pure cotton fabrics accounting for the majority of our orders. such as pure cotton hotel towels, pure cotton bathrobes, outdoor sports towels, poncho towels.Therefore, fluctuations in market prices directly impact our quotes to customers. As cotton prices fall, so too do our product prices. Now, in the golden months of October, if you’re looking for cotton products for winter or Christmas, now is the perfect time to get them. You can find the best prices and quality guaranteed. Welcome to inquire.
Post time: Oct-15-2025