KARACHI, May 28: Dull conditions prevailed on the cotton market on Monday as spinners and mills influenced by developments on world commodity markets remained to the sidelines.
Floor brokers, however, said the key factor behind the current slump on the cotton market was the ongoing euro crisis which slowed down the economies of other countries as well.
Naseem Usman, a cotton market expert, said that falling consumer demand had shaken up the confidence of entire textile industry across the globe because manufacturers were faced with huge unsold stocks.
The planned buying of around one million tons of cotton by China has been dropped because of sluggish global demand for textile made-ups, he added.China meanwhile has started supplying cotton from its reserve stocks to mills and is not ready to take any risk by building up its buffer stocks, however.
Meanwhile, on domestic front cotton sowing is going on in full swing but irrigation water shortage in the Punjab is a cause of concern, another broker said.
The Karachi Cotton Association (KCA) kept the spot rates at the overnight level. On ready counter couple of deals changed hands: 435 bales from Arifwala at Rs5,350 and 400 bales from Sadiqabad at Rs5,600.