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Dull session on cotton
market
KARACHI-Cotton market passed
through another cheerless session on the week's opening
session as were conspicuous by their absence despite the fact
that ginners were willing sellers at the previous levels.
"Ginners and spinners are locked in a battle of wits over the
issue of selling price but both have taken rigid positions and
are not inclined to entertain each other," says a dealer.
Floor brokers said higher crop estimates had reinforced the
spinner perceptions that prices may not rise from the current
levels as the future supplies are expected to remain fairly
comfortable.
"The lint intake of both the organized and the unorganized
mill sectors may touch the peak level of well over 10m bales
but there is a little possibility of short supply till the end
of the seasons," they said.
Basing their assessment on the monthly mill consumption figure
of well over 0.850m bales, the annual intake could set a new
record, signalling a major breakthrough on the export front.
In addition to a higher crop figure of about 10.5m bales,
spinners have already imported 0.775m bales since Sept 1, 2001
for blending purpose and to spin higher counts of yarn for the
export markets.
Although export of cotton yarn is maintained on the higher
side those of cloth and other value-added products are
slightly below the previous year's figure.
"The post-Sept 11 textile market was terribly sluggish in the
absence of fresh export orders from any quarter," says a
leading spinners, adding "but now the situation is improving,
although it may not be possible to recoup earlier losses on
the export front."
The yarn offtake of the ancillary industry is also picking up
after the increase in quota by the US and the European Union
and that could well lead to an increase in export during the
last quarter of the current financial year ending June 30,
2002, they added.
Owing to falling ready business, there was no change in the
official spot rates for the third session in a row.
Ready offtake was light at 2,000 bales as leading spinners
kept to the sidelines. The following are some of the deals,
which gone through late on Monday evening: 1,000 bales of
Kandero at Rs1,650, 200 bales, Faqirwali at Rs1,550 and 200
bales of Haroonabad at Rs1625.
| The
following are Monday's new crop Karachi Cotton Association
(KCA) official spot rates for local dealings in Pak rupees
for base grade 3 staple length 1-1/32" micronair value
between 3.8 to 4.9 NCL. |
|
Rate for |
Exgin price |
Ex-gin price
including Sales Tax |
Upcountry Expenses |
Spot rate ex-Karachi
including Sales Tax @ 15% |
| 37.32 kgs |
1,800 |
2,070.00 |
50 |
2,120.00 |
|
Equivalent |
| 40 kgs |
1,929 |
2,218.35 |
50 |
2,268.35 |
courtesy Daily Dawn, 9
April, 2002
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Pakissan.com;
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