KARACHI: The cotton market remained steady on Monday amid slow trading. However, small spinners, who were keen to replenish their stocks, were unable to get hold of big lot deals due to depleting stocks held by ginners.
Moreover, the short supply of cotton during off-season period has now forced many big spinners to import more cotton. Market sources said that around 50,000 tonnes have already reached the country in a period of one month.
Earlier, spinners imported around 3.5 million cotton bales, of which around 2.8m bales were imported from India. But due to shortage of cotton in the neighbouring country, further imports of cotton are not possible.
Due to depleting stocks, the availability of quality cotton in the domestic market was getting difficult with each passing day and ginners are demanding higher price at Rs6,000 per maund. Landed cost of imported quality cotton cost at around Rs5,500 per maund, brokers said.
Brokers said that value-added sector also imported cotton yarn from India and consumed higher quantity of polyester cotton blended yarn as its prices came down in line with petroleum prices.
The Karachi Cotton Association (KCA) cut its spot rates by Rs50 to Rs5,600 per maund.
Major deals on ready counter were: 200 bales from Chichawatni (at Rs5,200 per maund) and 1,600 bales from Rahimyar Khan (Rs5,630).