KARACHI: Steady flow of buying orders kept prices firm on the cotton market on Wednesday. However, much of the activity remained around quality lint which is in short supply.
Moreover, much of the activity remained around Punjab variety which is still available in abundance whereas Sindh quality cotton is now running out of stocks, brokers said.
The buying orders originating from some needy spinners kept flowing throughout the session but activity could not expand as the interest remained around quality lint, brokers said.
The high quality lint was quoted between Rs5,700 and Rs5,750 per maund (around 37kg), whereas medium and low quality was being quoted in the range of Rs5,385 to Rs5,450.
According to market sources, the demand for cotton has slowed down as many spinners have switched to blended PC (polyester/cotton) yarn to keep their mills operational. Moreover, cut in operational activity of many spinning units also reduced cotton demand.
Cotton analyst Naseem Usman said that world cotton production also recorded a steep fall of up to 15 per cent from 26 million tonnes last year to 22m tonnes this year. The huge inventory held by China is depressing cotton prices the world over, he added.
The Karachi Cotton Association (KCA) for second straight day did not issue daily market report.
Major deals on ready counter were: 400 bales from Faqirwali (done at Rs5,385 per bale), 400 bales from Fort Abbas (Rs5,385), 1000 bales from Yazman Mandi (Rs5,450), 500 bales from Mianwali (Rs5,500 to Rs5750), 1,400 bales from Sadiqabad (Rs5,650 to Rs5,700) and 1,200 bales from Rahimyar Khan (Rs5,700).