With international cotton prices strong, movement of domestic crop effectively over, there is lack of bearish influence on market
Karachi, March 07, 2013 (PPI-OT): With international cotton prices strong and movement of the domestic crop effectively over, there remains a distinct lack of bearish influence on the market. Although mills have been resisting any further price rises, available supplies of current crop remnants have been held in very strong hands, and few concessions have been forthcoming.
The current robust cotton prices have also been boosted by a continuation of favourable conditions in yarn and textile markets: despite the rise in cotton prices, spinners are reported to be operating comfortably. A retail volume of export business has again been reported, with lower grades continuing to attract buying interest.
Additional sales of Type ADNAS low Micronaire have been reported at prices around 67.00/68.00 cents per Ib, landed, main Far Eastern ports and India. Higher grades have also attracted enquiry but firm local prices have rendered business unworkable. Import activity from local mills has remained modest over the past few days, mainly on price considerations.
The recently imposed S percent withholding tax on raw cotton imports has also been an obstacle to business, particularly as some market participants expect its removal. Some business in Indian Shankar-6 has nonetheless been arranged at around 90.00/91.00 cents per lb. ex-Wagah border.
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