KARACHI, Feb 21: Trading on the cotton market on Monday resumed on a dull note as ginners and spinners remained locked in a price war, but the latter were not inclined to go beyond Rs2,250 per maund for fine lots.
Physical business, therefore, remained at low ebb, although unofficial sources claim that about 10,000 bales or above are changing hands daily, as the spinners are not inclined to keep off the market, floor brokers say.
"The current price war appears to have entered the no-win phase, as both sellers and buyers are strictly adhering to their parity levels," they said, adding "falling unsold stocks with the ginners do worry those spinners who are still short of their annual consumption target."
Leading spinners say they are not in position to go beyond their export parity level as they have to operate in a highly competive world textile market. "The post-WTO textile scenario has undergone major changes and most of us are still to adjust ourselves to the new market mechanism," they said. "Things may be clear during the next quarter ending June 30, 2005."
Having sold bulk of their stocks, the ginners are sitting pretty comfortable on the falling stocks amid hopes of further increase in prices after the arrival figures of for the fortnight ending Feb 28, are released.
Private sector exporters, who had so far signed forward deals with their traditional trading partners notably in the near and Far East, are also in the market and have so far purchased 0.573 bales from the current crop against their forward sales, according to official figures.
But they are in no way in competition with the spinners and they only purchased inferior types left by the spinners and the TCP according to their foreign demand of low-mic lint, market sources said.
Official spot rates were again held unchanged at around Rs2,175 per maund for average quality, but fine lots are fetching much higher prices. Ready off take was light as till late in the evening a deal of 1,200 bales from a Mailsi ginnery changed hands at Rs2,250.
