KARACHI, Jan 13: Physical activity on the cotton market remained relatively slow as both ginners and spinners took rigid positions resulting in a virtual price war.

While the former have raised their asking prices to Rs2,200 per maund for the fine lots, the latter were not inclined to bid at that rates because of their export parity levels, says a leading broker.

The worst-hit was, therefore, the ready business which fell to modest proportions as both failed to find a meeting ground leading to normal daily offtake.

Ginners claim much has changed on the world cotton front during the last couple of days, notably the lower global cotton production and its bullish impact on the prices.

“We have raised our asking prices in line with the ruling New York cotton futures, which had almost stabilized above the 50 cents per lb mark for the last about four weeks”, they said.

The dullness was also attributed to the fact that some of leading spinners were awaiting the arrival figures of phutti for the fortnight ending Jan 15, which will give fair idea of the total crop and the future price outlook.

But spinners say as they have to sell end-products in a highly competitive world textile market they have to think twice before bidding at the higher prices to avert undue losses.

“We are willing to operate on the world markets with modest profit margins, it is not feasible to sell at a discount as it means lower forex for the country”, they add.

The recent turmoil in the European textile markets and anti-dumping charges has further aggravated the situation as even a brief interruption in the outflow of exports causes losses to the textile sector.

Some leading brokers, however, claim the venue of the cotton business has been shifted to the southern Punjab cotton belt where the ginners and the spinners indulge in late-evening physical trading details of which are transmitted to the cotton exchange or the brokerage houses the next day.

The official rate committee, upped the spot rates by Rs25 per maund apparently in line with the ginner asking prices.

Ready offtake was light as till late in the evening only one deal of 300 bales from a Vehari ginnery was reported at Rs2,200, claimed to be the highest rate of the current season.

But some brokers said about 7,000 bales changed hands below Rs2,200 depending on quality, details of which will be available on Tuesday.