KARACHI, April 6: Physical activity on the cotton market on Saturday picked up modestly as spinners resumed their covering purchases against forward sales of yarn for the quarter ending June 30.

However, a difference of Rs300 in the selling prices depending apparently on quality premiums reflects that spinners are trying to offset the negative impact of the recent increase in polyester fibre prices after blending both the qualities.

The local polyester fibre makers have recently increased prices by Rs4 kg to Rs57. from the previous Rs53 claiming an increase in the imported raw materials.

“Yarn export market is not only highly competitive price-wise but also sensitive to global supply and demand factors,” says a leading spinner, adding “the producers have to work within the internationally laid down framework.”

“Any increase in lint cotton prices or staple fibre adds significantly to production cost having a negative impact on our export competitive edge,” they say.

But despite some local problems being faced by both the ginner and the spinner, satisfying feature is that the monthly mill intake has, on an average, soared to 0.850m bales from the last season’s 0.775m bales, reflecting that textile units are running to full capacity in addition to resumption of operations by several sick mills.

Ginners complain mills are playing hide-and-seek game with them as inconsistency in their daily offtake never allows to plan on long-term, adding “they keep us on toes all the time.”

Meanwhile, the TCP although made modest purchases, is very much in the market and purchased another 900 bales of grade 111 at Rs1,855 per maund and 1,200 bales of grade 11 at Rs1,956 per maund.

For the third session in a row, the official rate committee did not revise spot rates, which stood unchanged at Rs1,800 per maund, without 15 per cent sales tax.

New York cotton futures on the other hand resisted fresh decline and rose fractionally by 0.1 and 0.6 cents per lb at 37.73 and 39.35 cents per lb for both the ruling May and the distant July settlements, respectively.

Ready business was modest as till late in the evening about 5,000 bales changed hands as under:

SINDH VARIETY: 1,300 bales of Khipro at Rs1,500, 500 bales, Khidro at Rs1,700, 1,000 bales, Akri at Rs1,650 and 400 bales of Punjmoro also at Rs1,650.