KARACHI, Sept 2: Physical activity on the cotton market on Tuesday was maintained on the higher side as spinners and mills again indulged in panic-buying and lifted another 30,000 bales amid reports that the stock position was terribly low.

Analysts said the fear about future lint supplies was the chief reason behind the panic buying by the textile sector and in the process prices were rising further as ginners were not that generous to support the mills effort aimed at meeting their export target.

However, ginners claim the current rates are phutti-based as the cotton trade currently is in hands of growers who are citing high cost of inputs behind the price surge.

“The cotton trade appears to be heading for a major crisis both on the supply and price front,” said a leading broker, adding “heavy mill buying, including some big-lots, has altogether changed the future supply and price outlook”.

Spinners are willing buyers for Sindh type at Rs4,200 per maund as compared to Punjab’s Rs4,100 to Rs4,125, but the quality factor has changed the price balance among the two, he added.

He said it would be pretty difficult to contain an imminent price flare-up owing to price war between the spinners and mills based on their sound financial positions and enormous funds at their disposal.

Market sources said the current panic among leading mills, who have major stake in the export business, was related to worries about forward sales and meeting their shipment deadlines.

In the process, prices are steadily rising each day to new highs spurring speculative tendencies in the cotton trade, they added.

Official spot rates were again quoted higher by Rs50 maund but in the ready section most of the deals were done well above them.

Mill ready off-take was on the higher side amounting to 30,000 bales, bulk of the buying confined to Sindh variety as under.

SINDH TYPE: 5,000, 4,000, 3,000, 1,000, 800 and 400 each Shahdadpur, Tando Adam, Sanghar, Shahpur Chakkar, Hala, Jhole and New Saeedabad at Rs4,175 to Rs4,200, 1,000 bales each Hyderabad and Khipro at Rs4,150 to Rs4,200, 1,600 bales, Mirpurkhas at Rs4,125 to Rs4,175.

PUNJAB VARIETY: 1,200, 1,000, 1,200 bales each Pak Pattan, Burewala, Mian Channu, Chichawatni, Gaggon, at Rs4,100 to Rs4,125, 1,000 bales, Haroonabad at Rs4,100 and 400 bales, Gojra at Rs4,110.