Spot rate remains firm at cotton market


KARACHI: Trading remained brisk at the Karachi cotton market amid firm spot rate and strong physical prices, traders at Karachi Cotton Association (KCA) said Friday.
The KCA kept the spot rate unchanged at Rs 11,500 per maund while physical prices crossed Rs 13,500 per maund on growing demand, floor brokers said. The leading mills in Punjab purchased lint of all grades on competitive prices while in the Sindh stations, ginners withholding fine lint increased their asking rates above Rs 13,600 per maund, they added.
They said spinners in Sindh remained selective and purchased fine grade around Rs 13,500 per maund during the trading session.
“The textile and spinning sectors have started calculating import price parity of South Africa, USA and Brazil, as they have to go for imports after Indian Ministry of Commerce stopped lint export, analyst Shakeel Ahmad said.
He said due to a ban on export from India the textile sector would face a tough competition on the price front in the international market. “Besides higher cost of doing business and short of liquidity, the textile sector has to brave the higher import cost in the coming days,” Ahmad maintained.
Ahmad said India, Bangladesh and Thailand were still tough competitors of Pakistan textile and garments in the international market.
Ahmad said mill-to-mill business also took place as middle and small units bought lots to meet their requirements in Sindh and Punjab stations.
Majority of the deals in Punjab took place at Rs 12,500 per maund to Rs 10,700 per maund depending on grade during the trading session.
Deals in upper Sindh changed hands above Rs 13,400 per maund while in Punjab textile and spinning sectors remained the volume leaders and made around 80 percent of the total deals of 27,000 bales during the trading session.
He said New York Futures market was still hovering on the higher side and kept the international prices on firm footings as March Futures 2011 crossed 187.58 cents per pound and May 184.98 cents per pound while Cotlook A Index was at 209.75 cents per pound.