KARACHI, April 16: Cotton prices on Wednesday remained stable around the previous levels but prices did not fall despite the absence of leading spinners and mills from the market.
Some of them did lift stray lots of inferior varieties for blending purposes with polyester fibre to produce blended yarn and cloth for the export markets.
Floor brokers said the continued decline in prices of polyester fibre has altogether changed the local market outlook as it has significantly increased the spinner compatibility on the world markets for the end products.
The prevailing terrible sluggishness on the cotton was attributed to the availability of cheaper fibre, which spinners need badly to cater to the needs of the foreign buyers.
That is perhaps why despite falling stock of lint with the ginners because of a short crop, there is no apparent panic among the spinners as no one among them is worried over the supply and demand factors at least for the near-term.
“The 21 per cent decline in polyester fibre prices as claimed by the producers is massive judged by any standard”, market sources said adding” but it was the outcome of counter market sources and reflects prices fell as they did rise”.
They said the fall may not bridge the supply gap of lint, it has certainly contained an imminent price flare-up speculated to be caused by the lower crop of 9.7m bales.
As a result, most of the deals depending on quality are being finalized below the high mark of Rs2,600 per maund for the last couple of weeks, reflecting that spinners had contained the increase in prices.
Despite holding short positions as they have to go another three months before the new crop arrives on the market with the prevailing stocks as the imports are too expensive at the current world rates.
New York cotton futures on Tuesday recovered 0.89 and 0.78 cents at 58.00 and 60.00 cents per lb respectively for both the ruling May and the distant July settlements.
Local spot rates remained pegged at the last close of Rs2,525 per maund, excluding 15 per cent sales tax.
Ready off-take was light as till late in the evening about 7,000 bales changed hands as under: 400 bales each Kumb at Rs2,535 and Rs2,545 respectively, 1,000 bales, Tiba Sultan (Vehari) at Rs2,575, 400 bales, Khanpur at Rs2,575, 300 bales, Taunsa also at the same price, 500 bales, Chishtian at Rs2,550, 1,000 bales, Bahawalpur at Rs2,595, 1,000 bales at Rs2,575 and 600 bales, Nurpur Nauranga also at the same price.
