KARACHI, Dec 2: Cotton prices on Monday ruled steady as spinners further intensified their search of quality lint against their forward sales of higher counts of cotton yarn to foreign buyers.

Although ginners are holding on large stock of fine lint in an apparent bid to sell them around Rs2,200 per maund but spinners are not inclined to go beyond the price level of Rs2,125 at least for the near-term.

“The quality war is, therefore, said to be at its peak level and who will be the ultimate winner, ginner or the spinner, is unclear”, brokers said.

According to them ginners now have a modest edge over the spinners as the recent decline in phutti prices has given them the needed push but much will depend on their holding capacity beyond January.

Barring lots of contamination-free lint, notably from the Rahimyar Khan cotton belt, which is being sold at the highest rate of Rs930 per 40-kg, phutti from other stations is available between Rs905 on the lower side and Rs920 on the higher side depending on quality and micronaire.

Market sources say the prevailing local prices are lower by Rs200 to Rs300 per maund as compared to ruling New York cotton futures and it was speculated that spinners will prefer the local stuff and may not opt for imports for parity reasons.

Although imports and exports of cotton is free, unlike the previous years, spinners may not opt for imports as their end-products may become uncompetitive on the world markets.

“The local market will remain centre of activity during the coming weeks and it is anybody’s guess how ginners and spinners play their cards as by that growers will be out of the game after having sold their stock at the prevailing prices”, dealers said.

On the export front, private sector exporters have registered export contracts for 989 bales with the Export Promotion Bureau sold to Indonesia and Thailand on Nov 30. Total foreign sales from Sept 1, 2002 amounted to 47,264 bales including 46,868 bales of the old crop.

Official spot rates did not show any change in line with the ready rates at which business is being transacted and were quoted at Rs2,050 per maund.

Ready offtake was relatively slow as totalling to 15,000 bales as compared to 30,000 bales during the last couple of sessions. The following are some of the notable deals:

SINDH TYPE: 200 bales, Sanghar at Rs1,900.