A global trading house shared with SSESSMENTS.COM regarding the significant gap between bids and offers for import PP cargoes to the Bangladesh market despite the three-digit adjustment. This week, the trader is offering PP Homo Raffia and PP Homo Injection cargoes of Middle East origin at $100-110/ton lower than last month’s levels. Despite the notable downward adjustment, most Bangladeshi buyers submitted bids for both cargoes at $780/ton on LC at sight, CFR Chittagong Port, or between $40-50/ton lower than the initial offer levels. To date, there is still no response from the suppliers.
The trader voiced out to SSESSMENTS.COM about their concern about the letter of credit (LC) for the payment since working hours in the bank now is shorter due to Coronavirus lockdown. On the other hand, their suppliers are reassuring to not too worried about that and rather focus on selling the cargoes. Moreover, the trader reportedly has stopped offering Chinese cargoes remained firm and deemed unworkable by buyers.
Further added, for PE cargoes, the trader’s offers for US LLDPE Film C4 cargoes are available at $30/ton lower than last week’s level, at $750/ton. However, if there are any buyers who bid at $700/ton, the trader believes it would likely to be accepted by the supplier. However, no bids placed for the cargoes so far. All offers are on LC at sight, CFR Chittagong Port. In terms of demand, buying sentiment for PE and PP remains weak due to the lockdown. In the days to come, PP prices are expected to break below $800/ton-level, while PE prices will reach a new low of below $700/ton-level, the trader opined to SSESSMENTS.COM.
