The July 2026 fiber market was characterized by firm cotton prices, stable man-made fibers, softer crude oil during most of the month with a late recovery, and an almost unchanged Pakistani Rupee. Demand remained moderate as buyers continued purchasing only for immediate requirements while waiting for clearer direction from the upcoming cotton crop and global economic indicators.

1. ICE Cotton Futures Analysis

Monthly Summary

• Cotton futures maintained a strong upward trend throughout July.
• New crop concerns and speculative buying supported prices.
• Strong export expectations also improved sentiment.
• Deferred contracts gained similarly, indicating confidence in longer-term demand.

Market Outlook

ICE is likely to remain supported between 80–84 cents/lb unless large Northern Hemisphere crops exceed expectations.

2. Cotlook A Index

• Opening: 85.30
• Closing: 88.75
• Monthly Increase: +3.45

Analysis

Physical cotton markets remained firm despite cautious yarn demand.

The Cotlook Index stayed consistently above ICE, reflecting:

• Limited exportable quality cotton
• Strong merchant offers
• Stable international demand

Average during July:

88.70 cents/lb

3. China Cotton (CZCE)

Opening:

15,830 Yuan

Closing:

15,780 Yuan

Monthly Change:

-50 Yuan

Analysis

Chinese cotton remained largely range-bound.

Reasons:

• Adequate domestic inventories
• Government reserve policy
• Weak downstream spinning demand

The small monthly decline indicates a balanced market rather than weakness.

4. Brazil Cotton

Opening:

79.42

Closing:

82.85

Monthly Gain:

+3.43

Brazilian cotton remained highly competitive.

Drivers included:

• Strong export shipments
• High-quality crop
• Competitive FOB offers

Brazil continues gaining market share in Asia.

5. Indian Cotton

Opening:

63,100 INR/Candy

Closing:

66,700 INR/Candy

Increase:

+3,600 INR/Candy

Reasons

• Strong domestic mill demand
• Reduced arrivals
• Export inquiries
• Better ICE prices

Indian cotton remained one of the strongest performers during July.

6. Pakistan Cotton Market

KCA Spot Rate

Opening:

17,500 PKR/Maund

Closing:

18,200 PKR/Maund

Increase:

+700 PKR/Maund

Highest:

18,600

Lowest:

17,500

Minimum Cotton Prices

Opening:

17,200 PKR/Maund

Closing:

18,000 PKR/Maund

Increase:

+800 PKR

Maximum Cotton Prices

Opening:

18,000 PKR/Maund

Closing:

19,300 PKR/Maund

Increase:

+1,300 PKR

Market Analysis

Pakistan experienced one of the strongest spot markets among major cotton-producing countries.

Factors:

• Limited old crop stocks
• Active spinning demand
• Delayed expectations for the new crop
• Strong imported cotton prices

The premium quality cotton market showed the biggest appreciation.

7. Polyester Staple Fiber (PSF)

Local Pakistan

Opening:

420 PKR/kg

Closing:

410 PKR/kg

Monthly Change:

-10 PKR/kg

Imported PSF

USD/kg

Opening:

1.10

Closing:

1.15

Increase:

+0.05

PKR/kg

Opening:

355

Closing:

371

Increase:

+16 PKR

Analysis

Local PSF prices softened slightly due to domestic competition.

Imported PSF became more expensive because:

• Higher international polyester prices
• Freight normalization
• Slight currency effect

8. Viscose Fiber

Opening:

$1.95/kg

Closing:

$1.95/kg

Average:

$1.95

Analysis

Viscose remained remarkably stable.

Balanced supply and demand prevented any significant movement.

9. Lyocell

Opening:

$1.94

Closing:

$1.93

Monthly Change:

-0.01

Very stable market with almost no volatility.

10. Tencel

Maintained:

$2.10/kg

No monthly change.

Demand remained healthy in sustainable textile products.

11. Acrylic Fiber

Stable at:

$2.20/kg

No major movement throughout July.

12. Bamboo Fiber

Maintained:

$2.00/kg

Demand continues mainly from premium textile manufacturers.

13. Linen (Flax)

Stable around:

€5.40–5.50/kg

Average:

€5.46

European flax supply remained adequate.

14. Hemp Fiber

Unchanged

€8.00/kg

The hemp market remained quiet with stable industrial demand.

15. Crude Oil

Opening:

$68.58

Closing:

$84.67

Monthly Increase:

+$16.09/barrel

Analysis

Oil was highly volatile during July.

Prices recovered sharply toward month-end due to:

• Geopolitical tensions
• Improved demand expectations
• Supply concerns

Higher oil generally supports synthetic fiber prices over time.

16. Pakistan Exchange Rate

Opening:

278.16

Closing:

277.80

Monthly Change:

-0.36

The Rupee remained highly stable.

Exchange rate fluctuations had minimal impact on imported raw material costs during the month.

Overall Fiber Market Summary

August 2026 Outlook

• Cotton prices are expected to remain firm, supported by tight old-crop availability and weather uncertainty in key producing regions.
• Pakistan’s cotton market may continue trading at elevated levels until significant new-crop arrivals improve supply.
• Imported PSF is likely to remain firm if crude oil stays above $80/barrel, while local PSF prices may face competitive pressure.
• Cellulosic fibers (viscose, lyocell, and Tencel) are expected to remain stable due to balanced global supply and demand.
• Textile mills are likely to continue cautious purchasing, favoring short-term coverage rather than building large inventories.
• Overall, the global textile raw material market enters August with a moderately bullish bias, led by cotton, while most man-made fibers are expected to trade within narrow ranges.