KARACHI, March 26: Amid slow trading raw cotton prices remained steady in the local market when trading resumed on Tuesday after a long closure on account of Pakistan Day and Ashura.

The underlying sentiment remained steady particularly when mills were still in the forefront of buying indicating that export trade is gradually picking up, floor brokers said.

The rising trend in yarn and cloth prices in the local market has worked as an impetus for the brokers as well as mills who moved into the ring to meet their immediate demand.

A deal of 1,200 bales from upper Sindh (Dore) changed hands at Rs1,800 which reflects that some improvement is taking place on export front.

Above all the presence of the Trading Corporation of Pakistan (TCP) as a stabilizer of price is producing results, because this has checked wide fluctuation in raw cotton prices ranging from Rs1,200 to Rs1,900 per maund.

Floor brokers anticipate that prices of raw cotton to go higher in coming days as more mills would move in to replenish their stocks before the close of current cotton season next month.

However, the post holiday mood restrained business volume as most of the spinners stayed away and brokers reckoned that in coming days the market would pick up in term of volume as well as prices.

The official spot rates of Karachi Cotton Association (KCA) were fixed higher despite the fact that trading remained restricted.

The cotton output for current season revised downward by the official cotton assessment committee at 10.4 million bales is reported to be another factor for rising trend in prices. The textile industry with an average monthly consumption at 0.8 million bales is expected to consume around 10 million bales this year.

Transaction on ready board stood at 4,100 bales, they are: 1,200 bales from Dore were done at Rs1,800 and 2,000 bales from Bagho Bahar were done at Rs1,900.