KARACHI, Mar 7: Physical activity on the cotton market on Thursday was relatively listless as spinners were not inclined to chase prices further higher apparently for export parity reasons.

“We become uncompetitive on the export market if we cross the barrier of Rs1,700 per maund,” claims a leading spinner, adding “we could wait a little until the current euphoria created by the TCP is defused.”

Owing to the strong presence of the TCP, which has already purchased over 0.3 million of quality lint conforming to export standards to meet the official demands from Islamabad, ginners are encouraged to raise their selling prices in line with the TCP.

Unlike the TCP spinners have their own price limitations as they have to operate in a highly competitive market where only the quality sells is backed, of course, by the degree of value addition in the textiles meant for the export market, spinners say.

But on the other hand the TCP having an enormous holding capacity could await an opportune moment to market its stocks at a competitive rates, they add.

It was perhaps in this background that the chances of a price war between the two are very remote, although it may not be a fight between the unequals.

While there are some procurement problems for the small and medium spinners, big ones having efficient export outlets under their control could go farther if they want to corner the floating stock.

But the larger crop estimates have made thing more easy for the spinners as they are not worried about the supply position and do not resort to panic buying, dealers said, adding and that “keeps prices competitive.”

Meanwhile, the current pick up in lint prices has encouraged those growers who are still holding unsold stocks of phutti to sell it to the ginners before its quality is damaged because of warm weather.

Spinners also admit that cotton yarn prices on the world markets have shown a modest count-wise improvement in the recent past, but physical shipments are said to be still below the average monthly figure.

Ready offtake was light as till late in the evening about 3,000 bales from the southern Punjab ginneries changed hands between Rs1,650 and Rs1,700 per maund depending on quality premiums. Inferior types were sold around Rs1,450 to Rs1,550.