KARACHI, March 10: Trading on the cotton market on Monday resumed on a relatively dull note as spinners were not inclined to make fresh bigger commitments owing to delivery problems.

The market will close for Ahura holidays from Wednesday and will reopen on Saturday, but fearing some delivery problems partly because of two closures and partly to rigid position taken by the ginners in regard to selling prices.

The other contributory factor behind the low volume was higher asking prices by the ginners and spinners’ reluctance to oblige because of export parity levels.

“Ginners are sellers around Rs2,600 per maund for the quality lots, but all the spinners are not inclined to test this higher level,” brokers said, “hoping against hopes they are awaiting a miracle, pushing prices lower from the current levels.”

The ruling prices are generally guided by the supply and demand factors and the present statistical position about the crop figure tells that the spinners may remain at the receiving end.

The local end-product users, notably the ancillary industry, the main consumer of the cotton yarn, are also feeling the pinch of higher prices and fear a major setback to exports during the next quarter ending June 30.

According to them, cotton yarn prices had risen by more than Rs30 to Rs50 per bundle of 10 lb, which has significantly enhanced their overheads and lowered export margins.

“The entire textile trade is heading for a major crisis in the coming weeks as fears about the short supply and higher world prices making the imports more expensive will continue to haunt spinners and mills,” brokers said.

Although spinners have increased the use of synthetic fibres to balance their production costs, their prices had also risen higher during the last couple of weeks, they added.

Meanwhile, reports originating from the KCA sources said that foreign buyers were asking the Trading Corporation of Pakistan for supplies but it had directed them to approach the local cotton exporters, some of whom had stray unsold stocks with them and might oblige them subject to asking prices.

Official spot rates were firmly held at the weekend levels, although some of the deals in ready section were done above them as under: 200 bales from Khanpur Mehar at Rs2,650 on 40-day credit; 200 bales, Gambat at Rs2,600 and 200 bales of Yazman at Rs2,525.