KARACHI, Feb 20: Cotton market on Tuesday recovered from the overnight lower levels after ginners raised their asking prices as spinners indulged in big-lot business.

Fears that imports of lint from India by the overland route may be further delayed owing to train bomb blasts that killed 68 Pakistani passengers also triggered panic buying on the local market as spinners tried to grab the floating stocks before an anticipated price flare-up, market sources said.

As the local unsold stocks are far below the mill demand, the price war among big ones could push prices further higher, they said.

Unlike the subdued overnight dealings, the market started on a higher note as ginners holding bulk of the fine lots raised their asking prices. As a result, willing spinners lifted about 10,000 bales at the highest rate of Rs2,600 per maund, which had dropped to Rs2,575 overnight.

Surge in mill buying reflects that leading spinners and mills by now have a fair idea of the total crop and unsold stocks lying in the ginneries and their annual consumption needs.

“There is a loud whispering in the market that supply-based prices could rise further higher and spinners and mills having enormous cash amounts at their disposal resorted to panic buying,” said a leading broker.

Although official spot rates did not adjust to those at which physical business was transacted, indications were that the Monday’s fall of Rs25 per maund could be recovered by Wednesday, he added.

Official spot rates for the average type of lint were held unchanged at Rs2,500 per maund, although most of the deals were done well above them.

Ready off-take was on the higher side totalling about 15,000 bales, the following being some of the notable deals.

SINDH TYPE: 1,000 bales, upper Sindh at Rs2,575, 1,000 bales, Sanghar at Rs2,475 and 500 bales, Shahdadpur at Rs2,400.