KARACHI, April 28: The cotton market on Monday showed firm trend but physical business remained at a low ebb as spinners were not inclined to make fresh commitments owing to some problems on the export front.

There is a perception and shared by some leading spinners that their guarded support will ultimately force ginners to lower their asking prices in line with the international parity level.

By ginners claim lint prices are still lower as compared to the prevailing local rates of cotton yarn and spinners are not losers if the resume their covering operations at the current levels.

“Cotton yarn prices on the local market has risen by Rs10 to Rs75 per 10 lbs during the last one month, which is a big cost-push for the value-added sector making their exports more expensive,” claims a leading member of the ancillary industry.

According to market sources, a major price push was recorded in fine counts of cotton yarn, notably 21s and 24s, widely used in the value-added textile exports.

Ginners said spinners and mills generally passed on the negative impact of price flare-up to the local end-product users but the trading partners on the export front mostly question the hike in yarn prices.

However, at the end of the season, it is now pretty clear that benefit of a short crop went to the credit of growers and some leading ginners but the weaker links among them are still at the receiving end, they added.

Meanwhile, reports originating from the textile sector indicate that intake of polyester fibre has increased to about 35 per cent during the last

couple of weeks owing to higher lint prices as spinners tried to keep the export of blended yarn and cloth competitive on the world markets.

Ready offtake remained on the lower side as reports of fresh inter-mill business kept spinners and mills out of the ready market for most of the time.

According to the market sources, some of the leading mills who had surplus stocks of lint were selling in part to the needy mills at much higher rates than their purchasing prices at the start of the season.

Official spot rates showed a fresh fractional increase of Rs5 per maund at Rs2,535 for average quality but ginners are not inclined to sell fine lots below Rs2,600.

Ready offtake was light as till late in the evening about 1,000 bales from the southern Punjab cotton belt changed hands around Rs2.550 per maund but there was a relative quiet on the local market.