Home / Knowledge / News / Textiles / Drooping price impedes spirit of cotton traders
Drooping price impedes spirit of cotton traders
27
Oct '08
The consequence of global financial meltdown is apparent in almost every aspect of life. This is quite evident from the fact cotton prices have acquired a declining trend at the Karachi Cotton Market since last month.

Drooping cotton prices are making it difficult for the cotton traders to survive in this current situation.

During the week starting from October 20 to 25, the market remained in the tight grip of traders.

Ghulam Rabbani, Director of KCA, stated that market evidenced an average trading session as spot rates at KCA stood firm on Monday at Rs3,375 per maund. The demand for the lint is on the higher side.

Almost 200 bales of upper Sindh were sold at Rs3,400 per maund, 200 bales of southern Punjab at Rs3,395 per maund, 200 bales of upper Sindh for Rs3,415 per maund and 200 bales Mirpurkhas exchanged hands at Rs3,400 per maund.

Cotton producers were relieved as for the past few days prices continued to be stable. On Tuesday, the spot rate at KCA remained as it was on the earlier day and the settlement declared at Rs3375 per maund with no changes. Thin activities observed in the market. There was news from lower sindh about some business in low range. Over all trend was low and weak.

However, experts opine that Wednesday might bring something in the frames. According to Mr Ghulam Rabbani, spinners did not show any comfort carrying cotton and covering for long, as they were unsure about the future and this was the reason for low demand.

On the other hand, the power problem is touching its peaks and thus ginners were confronted with severe problems in payments and supplies. Being unable to produce enough stocks to compare the supply of raw material has forced them to sell a bit cheaper and earn something to keep the supply lines alive.

The spot rate at KCA lost another step on Wednesday and the settlement price was declared at Rs3300 per maund showcasing a fall of Rs75 per mound. Thin activities were observed in the market. 200 bales of Mubarik pur, 600 bales of Fazilpur and 400 bales of Rajan pur were traded at Rs3350 per mound.

On Thursday, spot rate at KCA moved further down and were quoted at Rs3,250 per maund reflecting a plunge of Rs50. Lack of buying interest forced sellers to adjust their margins with minimum profit in order to ease the liquidity flow as commercial banks were showing reluctance to support the financial needs of the cotton community.

According to Mr Rabbani, it is very unlikely that sentiments the cotton market would rebound in recent future. If incase it bounces back, the process would be very slow.

The KCA spot rate fell another Rs50 on Friday, and touched the mark of Rs3200 per maund. Meagre businesses were observed but with in a range of Rs3100 to Rs3300 per mound. Industry experts say that worsening power problem may give a new direction to the cotton market.

The spot rate at KCA remained changed on Saturday and the settlement stood at Rs3000 per maund.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 19th Aug 2017

New fabric interfaces to interact with computers

As computer capabilities evolve, new fabric-based interfaces are...

Textiles | On 19th Aug 2017

Brazilian cotton prices drop in first fortnight of August

Cotton prices dropped in the Brazilian market in the first fortnight...

Apparel/Garments | On 19th Aug 2017

Target to acquire Grand Junction for faster deliveries

Target Corporation has announced that it has agreed to acquire Grand...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search