KARACHI: The Karachi cotton market went through a correctional phase on lower demand and shrinking volumes while trading activities remained range-bound as buyers focused on fine lint amid firm physical prices during the week, traders at the KCA said Saturday.

A senior member of KCA, Ghulam Rabbani said demand was further weakening on the international spun yarn market, as the global economic crisis was everywhere depressing cotton textile production.

In addition to the recession, new protectionist measures are further aggravating the situation. Brazil for instance just imposed heavy anti-dumping duties on viscose yarn imports from main Asian producing countries.

Rabbani said cotton and polyester prices fell heavily in China, India and Pakistan from their level a year ago. Prices more sharply declined in China, as compared to the two other leading textile countries in Asia. He said, “Thanks to fall in the rupee, China’s advantage is eliminated on the cotton market when considering in US dollar prices. On the polyester market however, China retains a decisive gain in terms of price competitiveness.”

The local ginners were aware of the fact that buyers would bound to incline for imports so they asked slightly higher prices for their produce during the trading session. They slowed down the influx in the market because of higher transportation fares and law and order situation in major cotton trading areas in Punjab and Sindh. During the past week, around 363,234 bales were traded while fine lint fetched slightly higher rate above Rs 3,300 per maund.

On Saturday, the spot rate at KCA remained unchanged and the settlement was declared at Rs 3,225 per maund. In the local market 200 bales of Shahdadpur changed hands at Rs 3,150 per maund, 400 bales at Daur for Rs 3,125 per maund, 600 bales of Rahimyar Khan at Rs 3,300 per maund and in another contract 1,000 bales were sold in Rahimyar Khan at Rs 3,350 per maund.

staff report

Sunday, March 22, 2009

Source: www.dailytimes.com.pk