Local cotton markets witnessed slowdown in trading activities on Friday, as traders are facing shortage of funds to purchase fresh stocks of the commodity, a dealer said.
“Many of the spinning-mill owners (major buyers of cotton) remained on the sidelines due to low availability of funds,” Naseem Usman, a broker at the Karachi Cotton Exchange, said.
Traders exchanged a total of 4,900 bales (155 kilograms each) at Rs6,100 to Rs7,200 per maund (37.324 kilograms) as compared to 8,213 bales traded at Rs6,650 to Rs7,200 per maund a day ago, the Karachi Cotton Association (KCA) reported.
Meanwhile, the KCA kept its cotton spot rate unchanged at Rs7,000 per maund.
The broker said that the owners are not buying fresh stocks of cotton due to slow sale of cotton yarn. “Cotton yarn manufacturers are expecting surge in the sale of yarn and raw cotton after China resumed work on February 7 after observing long holidays.