A Pakistan-based trader revealed to SSESSMENTS.COM that several Middle Eastern PP producers have announced July shipment offers to the market. According to the trader, one of the Saudi producers applied a steep price increase of $80/ton on PP Homo Raffia cargoes in comparison to June shipment’s level. Similarly, July shipment offers for PP Homo Raffia from a Kuwaiti producer edged higher by $120/ton as compared to the same period. However, the producer's offers received lukewarm responses from customers in Pakistan. Considering a flare-up in coronavirus cases and volatility in feedstocks markets, some buyers in Pakistan are unwilling to build inventory levels; thus preferring to procure the materials on an as-needed basis.
On the supply front, the trader mentioned that market players in Pakistan are running out of PP Homo Injection stocks, adding that most suppliers have no spot cargoes to offer. Further added, most Middle Eastern producers are citing limited spot availability to Pakistan for July shipment. Commenting on this issue, the trader said that the company remains unsure whether most foreign producers are running low on allocation to the Pakistan market, or diverted more allocations to other markets due to better netbacks, SSESSMENTS.COM was informed.
