Slow trading on cotton marketArchive
KARACHI: The cotton market turned easy on Saturday as leading spinners remained on the sidelines. The undertone remained easy and outlook uncertain.
Floor brokers said that as the issue of imports of Indian cotton remains unresolved, spinners have reduced their buying activity. There is a strong perception among spinners that the current situation of conditional imports of cotton from India is against the industry’s interest.
It is being argued that by restricting free flow of cotton from India the government is damaging the local spinning industry on two accounts. Firstly, it deprives the industry from cheap raw material and, second, it encourages cheaper cotton yarn imports from India.
The cotton prices in India came down after Pakistan restricted imports and this directly benefited their spinning industry which is giving tough time to Pakistani spinners on exporting cheap cotton yarn in the world market, brokers said.
Consequently, there was a drastic fall in trading activity and big spinners generally stay away from the trading ring. Barring short covering emerging from some spinners, the market witnessed slow trading in general, brokers added.
The Karachi Cotton Association cut its spot rates by Rs50, to Rs6,250 per maund (around 37 kilograms). Major deals on the ready counter were: 2,000 bales from Mirpurkhas (at Rs4,800 to Rs5,500 per maund), 1,200 bales Shahdadpur (Rs5,500 to Rs5,565), 1,200 bales Rohri (Rs6,300 to Rs6,350), 1,600 bales Saleh Pat (Rs6,300 to Rs6,350), 800 bales Ghotki (Rs6,475), 800 bales Dharki (Rs6,457), 600 bales Mianwali (Rs6,000), 400 bales Chichawatni (Rs6,200), 500 bales Dahranwala (Rs6,300), 1,000 bales Rajanpur (Rs6,300), 800 bales Fort Abbas (Rs6,375 to Rs6,400), 800 bales Maroot (Rs6,400) and 800 bales Rahimyar Khan (Rs6,400).
Published in Dawn, December 11th, 2016