A global trading house said that price levels coupled with payment issues have restrained Bangladeshi buyers from making procurements. As reported to SSESSMENTS.COM, the trader’s latest offers for import PP Homo Raffia of India origin were hiked by $30/ton as compared to deals concluded last week, currently at $970/ton. Whereas import offers for Saudi PP Homo Raffia cargoes are standing at $960/ton, but no comparison available. All offers are on LC at sight, CFR Chittagong Port.
However, no buyers are interested in taking both Indian and Saudi cargoes as the prices are deemed too high. Besides, most buyers are not confident in making orders lately due to the payment issues taking into account the re-imposed lockdown in Bangladesh; which led to a disruption of bank operational time. Since last week, SSESSMENTS.COM was told that customers have yet to open a Letter of Credit for their orders. During the lockdown period, most banks only serve for five hours, from 10 AM to 2 PM Bangladesh time. Therefore, it is rather hassled to open a Letter of Credit amid such short working hours.
Meanwhile, offers for PP Homo Raffia of South Africa origin at $930-940/ton-level were quite competitive, yet, customers were contemplating whether to take the cargoes or not. Afterwards, when the buyers were assured to purchase; the cargoes were already sold-out to other markets. On June 18, the trader sold some volume of the African cargoes to the Vietnam market at $30-40/ton lower than the initial offer levels. Further added to SSESSMENTS.COM, the Bangladeshi market is currently short of PP Homo Film materials. On the other side, buyers are unwilling to take PP Homo Film cargoes of India origin as the prices are considered way too high.
