KARACHI, Feb 24: Cotton on Monday became more expensive as ginners further raised their asking prices after spinners and exporters flooded the market with fresh buying orders.

Selling prices of fine lots seem to have stabilized at Rs2,500 per maund, which come to Rs3,020.45 per 40 kg including 15 per cent sales tax apparently eroding the spinner export margins, brokers said.

But spinners are not inclined to take even a technical breather as prices are rising each day followed by conflicting reports about the size of crop, they added.

A leading group paid the highest price of Rs2,535 for a modest quantity from a central Sindh ginnery, claimed to be highest rates so far recorded on the ready counter, reflecting prevailing panic among the spinners. Another lot changed hand at Rs2,550 on two-month credit.

The big-lot business on the one hand reflects panic mill buying irrespective of ready prices and made rush among the spinners and mills to grab the floating stock, brokers said.

Some of the leading spinner says, “we are obliged to buying expensive lint as we want to keep the wheels of textile industry moving and could ill-afford to lose our traditional export outlets at this stage.”

“We are not leaving the arena despite eroding margins in the hope that prices of end-products could show an identical increase on the world markets in the months to come,” some others said.

There is a perception and shared by most of the spinners and mills that the world crop is terribly short of the consumption requirements for the current year, which could well mean a strong boosts to textiles.

This perceptions is well-reflected in New York Cotton futures, which is being quoted around 57 cents per lb for the ruling May settlement and predictions are that it is heading to touch the 15-year high mark of well over 60 cents per lb.

Market sources said spinners and mills are worried over the world cotton situation and are out to protect their export markets to contribute their due shares in foreign exchange earnings as they are biggest contributor of 65 per cent in the total annual exports.

An idea of the world demand for the Pakistani lint may well have from the daily export sales by the private sector exporters. On Feb 21, exporters registered export contracts for 5,461 bales with the Export Promotion Bureau. Bulk of it was sold to Bangladesh followed by Thailand and Bahrain importers at competitive rates and in line with ruling world prices.

Official spot rates were further raised by Rs10 per maund without 15 per cent sales tax at Rs2,410.

Ready offtake was active totalling 15,000 bales, the following being some of the notable deals:

SINDH TYPE: 2,600 bales, Mehrabpur at Rs2,400, 2,200 bales, upper Sindh at Rs2,500, 500 bales, Kingri at Rs2,450, 635 bales, Bhiria at Rs2,535,

PUNJAB VARIETY: 5,000 bales, Bahawalpur at Rs2,450 to Rs2,500 and 1,000 bales, at Rs2,500 and 600 bales, Kabirwala at Rs2,500.