KARACHI: Trading activity on the cotton market slowed down on Thursday as buyers withdrew to the sidelines.
The slow off-take of cotton yarn is depressing cotton demand as spinners are reluctant to hold ‘long’ position of yarn in front of slacked demand.
Floor brokers said flooding of Indian cotton yarn in the local market is affecting the spinning industry and according to inside reports the issue has been taken up by the All Pakistan Textile Mills Association (Aptma) with the policymakers in Islamabad.
They added that a demand had been already raised by the spinners’ body for the imposition of anti-dumping duty on cotton yarn imports so that domestic industry could be saved.
The general lethargy in cotton trading is also attributed to slacked demand of cotton yarn from China.
However, small bouts of buying and selling were witnessed and price structure remained steady as no major development took place to influence prices.
The world cotton markets also somewhat remained easy where New York cotton came under renewed pressure and registered falls for all the future contracts.
The Karachi Cotton Association (KCA) spot rates remained steady at previous level and trading on ready counter was slow.
The following transactions were reported to have changed hands on ready counter: 400 bales, station Chishtian, at Rs7,100; 400 bales, Rahimyar Khan, at Rs7,100; 400 bales, Faqirwali, at Rs6,950; 5,000 bales, Haroonabad, at Rs6,900 to Rs7,100; 200 bales, Shujabad, at Rs7,100; 200 bales, Duniapur, at Rs7,125; and 600 bales, Alipur, at Rs7,125 to Rs7,200.