KARACHI, March 4: Cotton market on Monday consolidated the weekend gains as ginners were not inclined to lower their asking prices despite larger unsold stocks lying in their godowns.

The arrival figures of phutti for the fortnight ended on Feb 28, which showed a decline of 2.27 per cent, signalling a pressure on ready supplies was claimed to be an aiding factor. An addition to it is strong presence of the TCP in the market followed by a government directive to bail ginners out of the impasse of larger unsold stocks, floor brokers said.

But on the other hand spinners were not worried over the fears of falling stocks with ginners as their inventories are enough to meet their near-term demand, they added.

“After having purchased up to Feb 28, 7.7m bales, spinners are claimed to be in pretty comfortable position, although they may need another 2.2m bales to see the current seasons through,” dealers said.

Falling prices of cotton yarn on the world markets despite a slight pick up in exports did worry them, but the recent concessions given by the European Union and the US are expected to give the needed push to exports during the remaining months of the current fiscal, they added.

Leading groups of spinners have already imported 0.250m bales from various sources and an identical quantity is said to be on its way from abroad, they claim.

According to latest arrival figures released by the Pakistan Cotton Ginners Association, 9.621m bales of phutti had arrived into the ginneries, out of which spinners had purchased 7.7m bales, TCP 0.144m bales and the private sector exporters 60,214 bales, leaving an unsold stock of 1.741m bales with the ginners.

The falling unsold stocks of lint with the ginners, which have fallen from 2m bales to the latest figure of 1.741m bales reflects that spinners have accelerated the pace of their buying after the entry of the TCP.

It was perhaps because of conflicting perceptions of supply and demand of both the ginner and the spinner, which caused the current sluggishness in the market.

Official spot rates were held unchanged at the weekend level of Rs1,600 per maund, but ready business remained dull, although few lots did change hands at the higher rates, says a broker.