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Fair turnover in steady lint market

DR ZAFAR HASSAN

LAHORE: A fair turnover comprising nearly 10,000 bales of cotton was reported on Monday, the tone of the lint market was described as steady. Mostly, the mills were the buyers, as some exporters came out in the market to sell cotton they had earlier bought at cheaper rates. However, as cotton yarn prices of the smaller units are not keeping pace with the raw cotton prices. There are reports of a few textile units having to close down their operations, while more closures could follow due to high cotton prices and cost of other inputs like power and the bank mark-up rates.

Some cotton is also being shipped regularly to the export markets, though a number of other shippers are inactive, the 1995-96 cotton crop production figures are still being given as around 10 million bales of 170 kgs each.

In Sindh, 200 bales Tando Allahyar and 400 bales from Shahdadpur are said to have sold at Rs 2100 per maund on Monday, but these cottons are said to possess lower micronaire values reported to be ranging from 2.8 to 3. However, 500 bales of cotton from Mehrabpur sold at Rs 2260 per maund then 200 bales from Shahpur Chakar reportedly sold at Rs 2200 per maund. Furthermore, one ginner from Sitharja was said to be demanding Rs 2350 per maund for his cotton. About 600 bales of K-68 variety from Mirpur Mathelo sold at Rs 2380 per maund.

In the Punjab, 635 bales of cotton from Saja (Khanpur) were sold at Rs 2270 per maund on Monday. Then 500 bales from Pull Rango (Kabirwala) and 1,000 bales of cotton from Rahimyar Khan are said to have been sold at Rs 2350 per maund. Later, another 300 bales of cotton from Rahimyar Khan also sold at Rs 2375 per maund. About 900 bales from Vihari are said to have sold at Rs 2400 per maund. A leading mill was reported to have bid Rs 2403, plus one percent additional tax payment, say about Rs 2427 per maund to lift 3,400 bales of cotton of Khanpur and Rahimyar Khan stations from the Punjab Seed Corporation and succeeded in winning the tender.

There is no confirmed report yet of any sizeable booking of imported cottons by the Pakistani mills for the medium staple cottons. But many of the mills are regularly making price-testing enquiries for importing these cottons to cover the short supply of domestic lint. Uncertainties of the federal budgetary provisions to follow in June, 1996, are also discouraging some of the spinners to enter into cotton imports at this juncture. However, it appears definite that several Pakistani mills are on the verge of placing orders to import medium staple cottons, though a few of the textile units producing finer counts of yarn are already importing increasing amounts of long staple cottons.

There was news of "hartal" (strike) in Sutar Mandi (yarn market) in Faisalabad on Monday as a reaction against the reported cash robbery of Rs 2,200,000 and the loot of cash deposit receipts said to be worth Rs 1,800,000 from that market, which is bound to further undermine the cotton yarn business there.