November 27, 2001	Tuesday	Ramazan 11, 1422

KARACHI, Nov 26: Trading activity on the cotton market remained slow as the leading spinners were again conspicuous by their absence in bid to outwit ginners.

A group of leading spinners was reportedly in session in Karachi during the evening to chalk out a consensus policy about the lint purchases.

Although no word was available from the “big ones”, over the future price mechanism, unconfirmed reports indicate that a consensus rate of Rs1,950 on the higher side and Rs1,850 on the lower side depending on the quality of lint has been agreed upon in the meeting, brokers said.

The above rates are in line with those of Trading Corporation of Pakistan depending on the quality lint, including premiums lots for which a premium of Rs175 and Rs200 per bale has already been fixed by the Ministry of Commerce.

But cotton analysts said the cartel might not work in the long run as changing world textile scenario could push lint prices further higher as idea of bullish markets was reinforced but the rise in New York cotton futures between 35 and 36 cents from the recent season lows of 28 cents per lb.

“Whether or not the current standoff on the price hike issue between the ginners and spinners is resolved, is pretty hard to say,” they added.

Leading spinners are off the market for the last couple of sessions and are not making fresh deals as a protest against higher asking prices by the ginners but their absence from the market failed to force ginners to indulge in hasty selling.

Market sources said while leading group of spinners and mills abide by their mutual agreement not to buy lint at the higher rates, smaller among them found safe havens in their counterparts in the ginning sector.

“An unannounced business is being transacted among them between Rs1,900 and Rs2,100 per maund in the absence of leading among them as most of them have to work on daily basis because of financial constraints and lower exports,” they added.

Meanwhile, reports coming from the cotton belt indicate that growers are also not inclined to lower their phutti prices and are holding back stocks to keep prices around Rs1,000 per 40 kg.

It was in this background that no ginner recorded his selling data but about 7,000 bales changed hands in the Punjab variety, mostly purchased by the smaller spinners and mills.

Official spot rates were firmly held at the weekend levels but ready business was done on quality basis.