December 4, 2001	Tuesday	Ramazan 18, 1422

KARACHI, Dec 3: Trading on cotton market on Monday resumed on a firm note as spinners remained active buyers for any number of lots below or around Rs2,100 per maund.

Although ginners are very much in the daily trade and selling in part their long positions, what they claim, at a loss as ruling prices are below their phutti parity levels.

“The big cartel of spinners, under an unwritten deal, have decided not to buy lint above the mutually agreed rates, which in turn has led the relevant market forces out of action as the supplies outstrip demand,” says a leading Sindh ginner.

He claims the current lint rates are not compatible with the prevailing phutti prices, which after adding conversions charges are much higher and ginners are at the receiving end.

“The cotton market is dominated by the grower on the one hand, who is not inclined to lower his phutti prices, and on the other hand by the spinner, who is not willing to pay a more than his export parity levels,” ginners say.

However, daily physical trading is relatively smooth as both sellers and buyers are busy with their routine business without giving any signs of disadvantage, market sources said.

“The fact that about 10,000 to 20,000 bales change hands daily tells that no one the is loser in the bargains, computer calculations apart,” they added.

Floor brokers said there was some panic among the second-line spinners, who fear further rise in lint prices after the successful maiden new crop international tender for 10,000 bales sold at 36.06 cents per lb.

The Trading Corporation of Pakistan, which has already purchased about 0.220m bales of fine type of lint, has invited second world tender for another 10,000 bales and hopes to sell it at much better prices as compared to the first one.

Meanwhile, reports coming in from the southern Punjab cotton belt indicate that growers are still holding on to their phutti stock to keep prices around the current level of Rs800 and Rs850.00 per 40 kg.

Ready offtake was fairly modest as till late in the evening about 10,000 bales, changed hands as under:

SINDH TYPE: 400 bales of Sanghar at Rs1,850 and 200 bales of Shahpur Chakker at Rs1,825.

PUNJAB VARIETY: 2,000 bales of Rajanpur at Rs2,100, 200 bales, Rahimyar Khan at Rs2,125 and 400 bales at Rs2,150, 3,000 bales, D.G. Khan at Rs2,075, 3,600 bales, Ahmedpur East at Rs2,125, and 400 bales of Nurpur at Rs2,100.