KARACHI: Falling cotton prices attracted some buying from needy spinners on Wednesday, but overall sentiment remained devoid of enthusiasm due to uncertain global and domestic market situation.
Floor brokers said that spinners were agitating against unbridled imports of heavily subsidised cotton yarn and fabric and were seeking a ban to save the domestic industry.
However, the government, bogged down in other issues, seemed to have its own priorities with regard to economic development and growth, brokers said.
All Pakistan Textile Mills Association (Aptma) Tariq Saud told Dawn that the government was showing indifferent attitude towards issues related to the industry, which gave jobs to millions and also earned foreign exchange.
The global cotton markets are sinking with each passing day on fears China may start unloading its huge cotton stocks of around 40 million bales in the world market any time. Consequently, the New York market has dipped down to a new low of 55.93 US cents per lb.
However, some needy mills taking advantage of falling lint prices resorted to selective buying which resulted in moderate business activity. However, prices remained low.
On the New York cotton market, there was mild recovery in maturing March and October 2016 contracts. However, all the other future contracts closed with fresh losses to touch record low level.
The Karachi Cotton Association (KCA) left its spot rates unchanged. On ready counter, major deals were: 1,000 bales from Qutub Pur (at Rs4,550 to Rs5,100 per maund), 815 bales from Dunyapur (Rs5,100), 400 bales from Haroonabad (Rs5,250), 400 bales from Rahimyar Khan (Rs5,300), 200 bales from Mianwali (Rs5,400) and 400 bales from Rajanpur (Rs5,550).