March 4, 2003	Tuesday	Zul Hijjah 30, 1423

KARACHI, March 3: Business activity on the cotton market on Monday failed to pick up significantly as spinners and mills kept to the sidelines after ginners further raised their asking prices by Rs25 per maund.

Some of the leading spinners, however, did not sit idle and lifted some big-lots of fine quality both from the upper Sindh and central Punjab ginneries at Rs2,550, billed as the highest rate for the current season so far.

The absence of spinners and mills from the market for the last couple of sessions did not affect the prevailing price line as ginners held on to their unsold positions rather than lowering their asking prices, brokers said.

They said spinners are passing on a part of the rising lint prices to the end-product users but there are problems on the export front as it is pretty hard to convince foreign buyers about the local market conditions.

But end-product users claim cotton yarn prices have risen by Rs10 to Rs30 per 10 lb depending on the lower and higher counts, which had made their exports more expensive for the foreign buyers.

Spinners are certainly worried over the exports prospects for the next quarter beginning from April 1 and ending June 30, as future lint prices appear to be a bit uncertain.

Leading among them are thinking to enhance yarn prices in line with the lint but some others keeping their options open apparently awaiting the final figures about the total final supplies.

But ginners appear to be in a commanding positions as they were holding fast to the unsold position hoping to recover losses for the last two seasons, market sources said.

“The total crop is certainly below the annual consumption needs of the textile sector as reflected by the current price flare-up,” they said, but “the disturbing feature is that imports have also become expensive owing to reports of global shortage of the current crop.”

However, despite the developing concerns about the future supplies, the official spot rates remained pegged at the last level of Rs2,450 per maund for the 5th session.

Ready offtake was light around 10,000 bales, the following being notable among them:

SINDH VARIETY: 4,000 bales, Dharki, Gothki, and some other upper Sindh stations at Rs2,550, 400 bales, Kumbh at Rs2,550, 200 bales, Akri also at Rs2,550, and 635 bales Bhiria at Rs2,525.

PUNJAB TYPE: 4,000 bales, Yazman at Rs2,550 and 745 bales at Rs2,500.