KARACHI: The cotton market witnessed renewed buying interest on Wednesday as many spinners rushed back to replenish their inventories in front of dwindling cotton stocks and short supply of quality lint.
Though there was no new development which could have induced buyers, rapidly falling cotton stocks held by ginners resulted in some panic buying from spinners who were running short of supplies, brokers said.
The crisis-ridden textile industry is currently passing through difficult period as the viability due to high cost of doing business continues to erode the profit margins, forcing many units to operate below capacity, brokers added.
However, steady flow of buying orders from some needy spinners throughout the session surged prices of quality lint to a new high level. Most deals were made in first- and second- grade cotton, brokers said.
The Karachi Cotton Association (KCA) spot rates where firm at previous level. Deals on ready counter were: 600 bales from Ranipur (at Rs5,000 per maund), 200 bales Mehrabpur (Rs5,000), 100 bales Rahimyar Khan (Rs5,000), 1,600 bales Khanpur (Rs5,500), 3,000 bales Sadiqabad (Rs5,375) to Rs5,500 and 400 bales Faqirwali (Rs5,300).
The world cotton markets gave mixed trend where Indian cotton firmed up after a cut of 25 paisa in the rupee value made through monetary policy. The New York cotton also remained firm.