KARACHI, March 27: Trading activity on the cotton market on Monday remained modest as spinners lifted only those lots which were offered below Rs2,500 per maund by ginners.

“The quality-war remained at its peak as the ginners were asking higher prices for fine lots while the spinners and mills appear to be in no mood to touch that level for their parity reasons,” brokers said.

And the prevailing tussle on prices was limiting daily mill intake, although the spinners still needed about half a million bales more to cover their forward positions against foreign sales, they said.

But ginners said TCP tenders were limiting the mill demand as they entered the ready market when the TCP benchmark prices were higher than the prevailing rates on the market, some others said.

“The proceeding in the previous TCP tender for an identical quantity (50,000 bales) reflects that the spinners and mills have purchased bulk of it comprising various grades,” they said.

The spinners are expected to return to the market after the TCP tender on March 31, as by that time the size of the crop would be clear based on phutti arrivals for April 1 which would be almost final, they added.

However, leading ginners who are still holding an unsold stock of over a million bales are not inclined to lower their asking prices amid market talk of pickup in mill demand after the latest TCP tender.

There is a general perception held by the ginners that mill buying could gain in stature in coming weeks in the backdrop of rising textile exports and a considerable increase in their local intake.

Official spot rates were, therefore, held unchanged at the weekend level, although most of the deals in the ready section were done at the higher levels.

Ready offtake was modest totalling 10,000 bales as under: 6,400 bales, Khanpur at Rs2,475; 674 bales, Rahimyar Khan also at Rs2,475; and 247 bales, upper Sindh at Rs2,430.