KARACHI: Lacklustre conditions prevailed on the cotton
market on Tuesday, with buyers and sellers staying away from the
proceedings. The undertone was weak and outlook uncertain.
The
downward trend in world leading cotton markets has impacted the
domestic market adversely. However, low demand for cotton from the
value-added textile sector is cited as another factor.
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. He said that a large number of local looms
have closed down due to large quantity of Indian grey cloth which has
flooded the market.
Moreover, slow demand for cotton yarn has forced many spinners to move cautiously and avoid building up their inventories.
In international markets, Indian cotton declined between
Rs100 to Rs200 per candy while New York cotton also closed easy for all
future contracts.
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 materialised on ready counter.
Source: The Dawn, Pakistan Tuesday, 17 April 2018