KARACHI, April 23: With much of the attention of millers and exporters remained towards the tender opening of the Trading Corporation of Pakistan (TCP) the local cotton market remained steady but devoid of activity. Barring couple of stray buying orders most of the session remained listless amid thin attendance. Despite the fact that New York cotton market had been lately showing firming up of prices but Karachi cotton market remained slow ahead of TCP tender opening.
When tenders were opened on Saturday the highest offer for local sales was Rs2310 and 46.07 cents per pound for export sales. However, the state owned corporation will take decision on Monday, after its price committee gives approval.
Sources said that in total 43 mills gave their bids for a total of 74,500 bales, whereas six exporters offered bids for 30,000 bales with highest at 46.07 cents per pound.
Cotton Analysts believe that prices offered has turned out to be much than the expectation and it would be difficult for the TCP to take decision because the corporation may lose million of rupees if the offers are accepted.
With yarn market also giving sluggish performance cotton dealers have pointed out that open-end mills are the most loser in the depressed market as their yarn is even fetching lesser price.
Consequently, the KCA spot rates also remained firm at previous level and there are strong indications that in near future prices may remain depressed as mills and exporters would go for TCP sales.
On ready section only 1000 bales from Nawabshah were reported to have changed hands in the range of Rs2150 to 2200.
