KARACHI, July 14: Physical activity on the cotton market on Monday was brisk as spinners continued to build up long positions around the current levels apparently fearing fresh increase in prices, brokers said.

They said aggressive mill buying around Rs4,000 per maund despite reports of closure of power-looms and S.O.S. by the ancillary industry against the massive hike in the gas tariff, the textile sector was not inclined to have a technical breather.

Indications are that they might have a fair idea about the future price outlook in the backdrop of international supply and demand situation and are not inclined to take risks at least on the supply front, they said.

But some others said that leading textile mills were fully booked for export orders at higher prices and were in the process of covering their forward positions.

“We are not inclined to take even a calculated risk on the future supplies until the size of the crop is clear,” said a leading spinner. “We cannot afford any blinking on the export front for obvious reasons”.

Analysts said the heating up of the market that too at the start of the new season was expected to continue even if the crop is around the official target irrespective of increase in prices.

However, their weaker links whose export outlets are not that active and mainly rely on the local consumers are worried over the developing situation and some of them are facing forced closures on account of higher costs of production, they said.

Official spot rates were again firmly held at Rs3,650 per maund for the average quality current crop lots but the new crop was traded between Rs3,925 to Rs4,000 per maund.

Mill off-take was active as till late in the evening about 8,000 bales, changed hands as under.

SINDH TYPE: 200 bales, Sanghar at Rs3.975, 400 bales, Shahdadpur at Rs4,000.

PUNJAB VARIETY: 200 bales, Burewala at Rs4,000, 1,000 bales, Pak Pattan at Rs3,940 to Rs3,950, 600 bales, Chishtian at Rs3,950 to Rs3,960, 200 bales, Gaggon at Rs3,940, 200 bales, Hasilpur at Rs3,925, 600 bales, Sahiwal at Rs3,900 to Rs3,950, 400 bales, each and 200 bales, each Mong Bungalow, Arifwala, Qaboola, Depalpur, and Haroonabad at Rs3,950.