KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Friday has increased the spot rate by Rs 150 per maund and closed it at Rs 9400 per maund. The local cotton market remained stable on Friday. Market sources told that the rate of cotton reached at Rs 9500 per maund which is highest in the season. The supply of Phutti is 19% less than previous year. The rate of cotton is increasing due to the non availability of quality Phutti in the market.
Cotton Analyst Naseem Usman told that Cotton Day is being celebrated all over the world. We should think that what we have done with cotton in Pakistan. The production of cotton is decreasing as well as the quality of cotton is deteriorating.
Moreover, both as textile powerhouses, China and Pakistan are cooperating each other to increase business in the textile sector, said some traders who have had years of business dealings with Pakistan.
Pakistani-made coarse yarn delivers good value for money as its advantage in cotton fiber overcomes the weakness of coarse yarn production in China's cotton mill, said Ke Jiangwei, General Manager of Xiamen Naseem Trade Co., Ltd., a Pakistani company registered in China, which has imported yarn from Pakistan for many years.
Zheng Peipei, General Manager of Haian Jinhong Chemical Fiber Co., Ltd., which has been doing business with Pakistan for 15 years told CEN during recently held 2020 China Textile Joint Exhibition recently held in Shanghai by China National Textile and Apparel Council (CNTAC) that Pakistani buyers mainly purchase yarn, nylon, and polyester.
Specifically, high-count yarns are used for making fabrics and socks; fishing lines are exported to Karachi for fishing nets; skeins are dyed and made into sewing threads before being sold to local factories for making shoes, bags, and suitcases, said Zheng.
"We produce a steady supply of quality goods and export them directly to Pakistan at a price that is at least 10% lower than the market average. That is exactly what the Pakistani market needs," he added.
ICE cotton futures fell from a more than seven-month peak on Thursday as lower US export sales of the fibre offset support from crop damage fears due to Hurricane Delta, while investors awaited a monthly federal supply demand report due on Friday.
Cotton contracts for December fell 0.35 cent, or 0.5%, to 67.24 cents per lb by 1:05 p.m. EDT (1705 GMT), having hit its highest since Feb. 24 at 68.29. "We got below average (export sales) and that's one of the reasons why the trade got blunted. ... China celebrated Golden Week last week and their participation was quite limited," said Keith Brown, principal at cotton brokers Keith Brown and Co in Georgia.
In its weekly export sales report, the US Department of Agriculture reported net sales of 178,400 running bales (RB) for 2020/21, down 27% from the prior 4-week average. The report also showed that exports of 142,300 RB were down 38% from the prior 4-week average.
Earlier, The All Pakistan Textile Mills Association (APTMA) Punjab Chairman Abdul Rahim Nasir has urged the government to announce the new textile policy forthwith to attract new investment to the textile industry.
He said the textile value chain is affected badly due to a delay in the announcement of the new textile policy. He was of the view that a delay in textile policy may result in delay or even backing out of investors from possible investments in the textile chain.
Currently, he said, Pakistan is short in production capacity and many exporters are refusing export orders because there is not enough capacity available in the country. A clear long term policy will give investors a clear vision that the government of Pakistan is ready to support the textile chain of Pakistan on long term basis.
Naseem told that 200 bales of Tando Adam were sold at Rs 8475, 400 bales of Saleh Pat were sold at Rs 9300, 600 bales of Rahim Yar Khan were sold at Rs 9500 to Rs 9700, 1400 bales of Haroonabad were sold at Rs 9650 to Rs 9700, 1200 bales of Fort Abbas were sold at Rs 9600 to Rs 9700, 800 bales of Faqeerwali were sold at Rs 9600 to Rs 9700, 100 bales of Hasilpur were sold at Rs 9550 and 200 bales of Tunsa Sharif were sold at Rs 9450.
He told that rate of cotton in Sindh was in between Rs 8500 to Rs 9300. The rate of cotton in Punjab is in between Rs 9000 to Rs 9750. He also told that Phutti of Sindh was sold in between Rs 3800 to Rs 4300 per 40 kg. The rate of Phutti in Punjab is in between Rs 3800 to Rs 4700 per 40 kg.
The rate of Banola in Sindh was in between Rs 1700 to Rs 1850 while the price of Banola in Punjab was in between Rs 1800 to Rs 2150. The rate of cotton in Balochistan is in between Rs 9000 to Rs 9100 while the rate of Phutti is in between Rs 4700 to Rs 5500.
The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 150 per maund and closed it at Rs 9400 per maund. The polyester fiber was available at Rs 153 per kg.
Copyright Business Recorder, 2020