Cotton trading at Pakistan cotton market remained meek

With spinning mill-owners gradually getting back to the commodity markets after imposition of duty on import of cotton yarn, however, cotton trading activities at the Pakistan cotton market remained meek.

According to broker at the Karachi Cotton Exchange, activities are expected to improve further; following the government withdrew exemption of five percent duty on import of cotton yarn.

Trading activities has declined as majority of the textile manufacturers import cotton yarn from India instead of buying it from the local manufacturers due of low cost. Imposition of the duty is likely to discourage textile manufacturers from continuing imports.

Karachi Cotton Association (KCA) reported few bales exchanging hands. Traders exchanged 3,400 bales at Rs5,800 to Rs6,500 per maund as compared to 2,500 bales traded at Rs5,650 to Rs6,500 per maund a day ago.

KCA kept the spot rate unchanged at Rs 6,400 per maund in order to provide some relief to baseline prices besides support to stakeholders and traders withholding raw grades for getting better prices, floor brokers said.

At the Punjab and Sindh stations, the sellers and buyers remained confused in price war and buyers made deals for all grades on competitive price at around Rs 5,950 per maund to Rs 6,000 per maund.