Demand for import PE and PP cargoes is flattening as the impact of Coronavirus ravaged health and economic condition in India, Pakistan and Bangladesh, SSESSMENTS.COM was informed. Per Bloomberg Quint report, the Indian government hopes to stop economic contraction by continuing the process of lifting the lockdown for markets, malls, hotels, and places of worship since Monday, June 8. At the same time, the government is also fighting COVID-19 case spike in national level which reached 9,000 new cases/day from June 4 until today.
Regional trading house told SSESSMENTS.COM that their company decided to skip offers to India market this week for both PE and PP cargoes. The step to avoid India market is because import cargoes are less attractive than local products, which are available at competitive prices. Also, their customers had bought and built their inventory when prices were low, and with the sluggish end-product demand made a lower absorption of PE and PP resins.
Market sluggishness also occurred in the Bangladesh PE market this week, per trader report. Likewise, buying sentiment for PP is weakening this week. Last week, the trader could sell Middle East origin PP Homo Raffia at $910-920/ton on LC at sight, CFR Chittagong Port, while this week, buyers were asking for prices at $880/ton. The trader voiced out their prediction to SSESSMENTS.COM that the price might stabilize or slightly drop in the near term.
The trader also said that there were no allocations this week for import PE and PP cargoes to Pakistan. Even so, the trader revealed to SSESSMENTS.COM that their company managed to achieve deals at $900-930/ton on LC at sight, CFR Karachi Port for Middle East origin PP Homo Raffia last week. "Up until now, Pakistani buyers are still very cautious and only purchased on a hand-to-mouth basis," the trader quoted. Looking ahead, the trader believes that the price will be stable in the near term.
