KARACHI: Much of the trading activity remained around low-quality cotton on Monday as the availability of quality lint is becoming difficult with each passing day.
Floor brokers said that out of 1.1 million bales held by ginners, only 30 per cent of stocks are of quality lint.
On an average 1.2m bales are consumed per month by the spinning industry under normal circumstances, but current depressed demand on the cotton yarn market is keeping cotton off-take slow, they added.
With around seven months for the arrival of cotton next crop (2016-17) there should have been frenzied buying from spinners.
The spinning industry continues to import cotton from Indian and only last week around one million bales were imported, brokers added.
According to market sources, most deals finalised between spinners and ginners were in lower quality cotton priced at Rs5,550 to R5s,650 per maund.
The Karachi Cotton Association (KCA) cut its spot rates by Rs50 per maund to Rs5,400.
Major deals on ready counter were: 3,700 bales from Sanghar (Rs4,550 to Rs4,725 per maund), 400 bales from Shahdadpur (Rs4,750), 600 bales from Burewala (Rs4,850), 400 bales from Fort Abbas (Rs5,350), 400 bales from Multan (Rs5,400), 400 bales from Layyah (Rs5,500), 600 bales from Mianwali (Rs5,500 to Rs5,550), 600 bales from Yazman Mandi (Rs5,650), 1,000 bales from Rahimyar Khan (Rs5,650).