- Overall import PE offers to Bangladesh were limited in June
- Market players were cautious as government reimposed lockdown
- July shipment offers will remain firm
According to market sources reported to SSESSMENTS.COM, in the first week of June, import LDPE Film and LLDPE Film C4 offers of various origins to Bangladesh market hiked up between $40-50/ton compared to the offer level before the Eid Al-Fitr holiday. For Indian and Saudi LLDPE Film C4 cargoes, the offers were maintained at above $800/ton-level. While for Malaysian LDPE Film cargoes, sources stated that on June 1, the offers were available at $950/ton with deals concluded at the initial offer level. However, on June 2, the offers were no longer available and sources expressed the possibility for Malaysian LDPE Film offers to be adjusted higher to $1,000/ton-level. Further added, import offers for US LLDPE Film C4 were absent as the allocation had been sold out to the other markets, especially to China. For the week commencing June 8, sources revealed that suppliers quoted US LLDPE Film C4 offers at $850-860/ton-level but deemed unattractive considering the long lead-time. All offers on LC at sight, CFR Chittagong Port
Moving to the third week of the month, market players reported to SSESSMENTS.COM that deals for Saudi LLDPE Film C4 closed at $890/ton after receiving a cold response from buyers in the previous week. Meanwhile, the offers for LLDPE Film C4 of India and Taiwan origin recorded at $860/ton and $820/ton respectively. In general, sources stated that import offers to Bangladesh during the week were limited. By the following week, there were no fresh import offers for PE yet as July shipment offers from an Emirati producer to Bangladesh expected to be announced on July 2. Within the same week, a global trading house voiced out sell ideas for Indian HDPE Yarn and LLDPE Film C4 between $910-920/ton and $860/ton respectively. Sources added that the offers for US HDPE Film stood at $900/ton. However, traders decided not to make procurement as they did not receive inquiries for the grade from customers.
During June, SSESSMENTS.COM noted that demand for both PE resins and finished products in Bangladesh was reported sluggish as most players were cautious due to the continuous increases in COVID-19 cases. As coronavirus cases continued to swell, the government decided to reimpose lockdown in several areas labelled as red-zones. Per week commencing June 22, 15 out of 60 districts in Bangladesh have been labelled as red-zones and different dates for the lockdown have been announced depending on the assessment of local authorities. Additionally, the number of confirmed coronavirus cases had gone up to 138,000 as of June 28, an addition of 3,809 cases within 24 hours. On the production sector, most converters were running production at 50% from the normal rate by the fourth week of June as everyone had to follow the social distancing rules while the demand remained slow.
Looking into July, most market players in Bangladesh predict that the reimposed lockdown in the country will drag the market sentiment further. Regardless of the market situation, players opined to SSESSMENTS.COM that July shipment offers from foreign suppliers will remain firm following the global market trend.
