May 23, 2008	Friday	Jamadi-ul-Awwal 17, 1429

KARACHI, May 22: Cotton market on Thursday maintained a firm trend as both spinners and ginners remained locked in price war but the latter were in a commanding position owing to a modest unsold stock of lint held by them.

“A price war has already started between the spinners and the mills as leading mill cartel has set a precedent, which is expected to be followed by others in the coming sessions well before the arrival of new crop,” said a leading cotton analyst Naseem Usman.

Some of the leading spinners who needed ready supplies of fine lots lifted well over 3,000 bales from the southern Punjab ginneries at Rs4,000 per maund, he said.

The price war among the textile tycoons could push prices further higher as dwindling stock of quality lots could well be a bone of contention in the coming session, some others said.

“If the current panic buying by leading mills and spinners continued in the coming weeks also, prices could touch the high mark of Rs4,200 plus,” said a leading ginner, adding: “it will have a positive bearing on the new crop”.

As a result, official spot rates were revised upward by Rs25 per maund at Rs3,500 but some of the deals in the ready section were done well above them, floor brokers said.

Although spinners and mills have been maintaining a status quo after having curtailed their daily intake in an effort not to allow supply-related price flare-up, they said, adding: “but Thursday’s panic buying has changed the situation”.

Official spot rates were raised owing to bullish feedback from the ready counter.

The ready intake of mills was on the higher side totaling about 10,000 bales, the following being some of the notable deals: 2,000 bales, Tiba Sultan and 1,200 bales, Khanpur fine type at Rs4,000, 1,100 bales, Rahim Yar Khan at Rs3,800 and 500 bales, Mirpur Mathelo also at Rs3,800.