Cotton market: prices move up on expectations
Expectations for several incentives for textile industry, pushed the rates higher on the cotton market on Friday, dealers said. The official spot rate appreciated by Rs 50 at Rs 6,450, they added. Prices of seed cotton in Sindh per 40 kg were unchanged at Rs 2200-3000, in Punjab prices showed no change at Rs 2700-3100, dealers said. In the ready session, dearth of fine quality cotton cut down volume of business, somehow, over 16,000 bales of cotton changed hands between at Rs 6300-6650, they said.
Market sources said that mills and spinners were expecting a visible rise in booking of orders in Heim textile exhibition by importing countries, induced them to do quality caution buying to avail the chance. Heim textile exhibition in January is providing textile exporters to capture foreign market by keeping their production free from contamination, the Generalised System of Preference (GSP) plus on import of Pak products by the European Union (EU), may help country to increase the foreign exchange earnings in the coming days, cotton analyst Naseem Usman said.
Till, now over 200 firms have registered to participate in the January Heim Textile fair in Germany, other experts said. Beside, continuation in gas supply is also a good development, which is definitely by the government, they said and adding that this factor is giving an impression of business friendly atmosphere for the traders.