KARACHI: Steady buying by mills and exporters kept lint prices firm on the cotton market on Monday.

However, growers are still reluctant to sell phutti (seed cotton), anticipating price hike once the Trading Corporation of Pakistan (TCP) starts cotton procurement.

Floor brokers said that slow demand for cotton and cotton yarn in domestic and world markets is keeping lint prices under pressure.

Pakistani spinners participating in the international yarn fair in China have reportedly received poor response.

China, a major player in cotton and textiles, is for the last couple of years restricted its world operations and is largely depending on domestic sources of cotton and cotton yarn, brokers said. Consequently, Pakistani spinners who had been major supplier of cotton yarn to China are under pressure.

World cotton markets also continue to stay under pressure because of ban of imports by China.

The Karachi Cotton Association (KCA) spot rates remained firm at previous level.

The following major deals were reported to have changed hands on ready counter: 2,000 bales Khairpur at Rs5,260, 2,000 bales upper Sindh at Rs5,200 to Rs5,250, 1,000 bales Burewala at Rs5,200, 1,000 bales Haroonabad at Rs5,200, 2,000 bales Tonsa Sharif at Rs5,250, 200 bales Donga Bonga at Rs5,250, 1,000 bales Dera Ghazi Khan at Rs5,250, 1,000 bales Ahmed Pur at Rs5,250, 1,000 bales Layyah at Rs6,275, 1,600 bales Rajanpur at Rs5,275 to Rs5,300 and 1,000 bales Khanewal at Rs5,300.

Published in Dawn, October 21st , 2014