KARACHI, Jan 12: Cotton market on Monday resumed trading on a steady note but buying activity remained slow as spinners were not inclined to go beyond their immediate needs, analysts said.

But later in the evening, prices showed an upward trend as some of the fine lots were traded as higher as Rs3,300 per maund on selective support by some leading spinners.

They said no one could deny the fact that textile industry is passing through a crisis-like situation on various counts, including problems on the export front, liquidity crunch and higher lint prices.

Spinners threat to close down their production lines or cut down daily production threatens export proceeds, they said, adding huge amounts of cash are involved in the piling of unsold stocks of textiles and cotton yarn.

What worries officials was their threat of layoffs if their immediate problems, notably liquidity crunch, were not solved, they added.

As a result, most of the leading spinners and mills did not go beyond their most immediate needs until there is a smooth sailing on the export front and they purchased only those lots which fell in line with their export parity levels, some others said.They said that is perhaps why that unlike the previous sessions, there was bit-lot business as retailers dominated trading in the absence of leading groups.

Meanwhile, a section of spinners is awaiting the arrival figures of phutti for the fortnight ending Jan 15 which, in their opinion, will give a fair idea of the total crop.

Official spot rates were again held unchanged at the last level of Rs3,200 per maund but some fine lots were traded well above the highest rate being Rs3,300.

Mills ready off-take was on the lower side as till late in the evening about 15,000 bales changed hands as under:

SINDH TYPE: 1,000 bales, Tando Adam at Rs3,200 to Rs3,250, 800 bales, Shahdadpur, 600 bales, Sanghar and 400 bales, Jhole at Rs3,200, 200 bales, Sarhari at Rs3,250 and 1,000 bales, Hyderabad at Rs3,160 to Rs3,175.

PUNJAB VARIETY: 1,800 bales, Bahawalpur at Rs3,100 to Rs3,300, 200 bales, Khanewal at Rs3,300, 400 bales, each Fort Abbas and Sadiqabad at Rs3,220 and Rs3,275, and 600 bales, Haroonabad at Rs3,150 to Rs3,225.