With buyers and sellers staying away from the proceedings kept cotton market conditions dull on Tuesday. The undertone was weak and outlook uncertain. However, low demand for cotton from the value-added textile sector is cited as another factor.
Moreover, slow demand for cotton yarn has forced many spinners to move cautiously and avoid building up their inventories.
The downward trend in world leading cotton markets has impacted the domestic market adversely.
At the Karachi Cotton Association (KCA) spot rates were lowered by Rs100 to Rs7,200 per maund. According to official report, no transaction was reported to have materialized on ready counter.
According to market sources, substantial quantity of Indian-origin grey cloth is making its way illegally via Dubai into the local market.
Chairman Pakistan Apparel Forum (PAF) Jawed Bilwani has already raised this issue with the government. A large number of local looms have closed down due to large quantity of Indian grey cloth which has flooded the market.
On global front, New York cotton closed easy for all future contracts while, Indian cotton declined between Rs100 to Rs200 per candy.
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