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Dull trading on cotton
market
KARACHI- Trading on the cotton market on Monday resumed on a
dull note as both sellers and buyers remained locked in a
battle of nerves to get an upper hand but it seems to be a
no-win situation.
Unlike the previous sessions, ginners appear to be a bit
confident about the future price outlook and did not lower
their asking prices despite the fact that some of the spinners
were not inclined to make fresh commitments.
The recent rise in polyester prices to Rs59.00 per kilo,
second within a couple of weeks has a negative impact on the
export competitiveness of spinners and they think twice before
buying at the higher prices, floor brokers said.
"Spinners' chief worry is how to remain competitive both on
the local and the world markets after absorbing the recent
increase in polyester prices and its impact on the yarn and
cloth," they add.
Polyester fibre is not widely used by the textile sector to
cater to the rising demand of the blended fabrics, notably on
the world markets but a sharp increase to Rs59 from Rs52 in
the recent past has spinners in a difficult position.
Local polyester fibre producers including Dewan Salman, ICI
Pakistan and some others attribute the increase to higher cost
of the imported material used in it because of closure of some
major units in the foreign countries.
There is some rethinking in the textile sector whether or not
to go for further imports of lint from the world markets in
the backdrop of the recent decline in prices, dealers said.
Meanwhile, 0.94m bales have been physically shipped to foreign
countries against the total sales of 0.123m bales up to April
19, indicating that shipment deadlines are being met.
Out of the total private sector exporters have 89,851 bales,
including 8,901 bales of the old crop and 4,000 bales by the
TCP.
TCP has intimated to the Karachi Cotton Association (KCA) that
it has purchased another 100 bales of export quality cotton
from a Punjab ginner at Rs1,855 per maund. The TCP total
purchases so far is close to 0.400m bales.
Owing to slack ready business, there was no change in the
official spot rates, which were quoted at the weekend level.
Ready offtake was light as till late in the evening a deal of
1,500 bales from Bahawalpur was reported at Rs1,700 per maund.
| 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 |
1,650 |
1,897.50 |
50 |
1,947.50 |
|
Equivalent |
| 40 kgs |
1,768 |
2,033.20 |
50 |
2,083.20 |
courtesy Daily Dawn, 23
April, 2002
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Pakissan.com;
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