KARACHI, Feb 10: Cotton prices on the Karachi Cotton Exchange remained stable as spinners and mills made active covering purchases against their foreign sales.

About 15,000 bales, including some big deals business was reported by the brokers as some of the leading textile groups continued to build-up long positions at the current levels, floor brokers said.

But their major thrust is on the low-mix lots, which they probably need for blending purposes to mix it with the fine type to spin higher counts of cotton yarn, they said.

“There is a difference of about Rs200 per maund in the fine and inferior types, which provide an attractive bait to make their export competitive on the world market after blending it with polyester fiber,” market sources said.

The recent pick up in mills buying after a relative quiet for the last couple of week reflects that ruling prices are in line with their export parity levels, they said.

Meanwhile, reports coming from the local yarn market said prices of cotton yarn are stable but ready off-take is modest owing partly to some problems on the export front followed by reports of falling demand.

But the ancillary industry is silent on the issue, although some of them say textile exports are still to pick up for the new year as some of the leading importers are in the process of assessing their needs for the next quarter.

Official spot rates were, therefore, firmly held at the last level of Rs2,525 for average quality lint but in physical trading the highest and lowest rates were quoted at Rs2,325 and Rs2,625.

Ready business was light and comprised both Sindh and Punjab varieties but rates were linked to quality premiums.