A trader reported to SSESSMENTS.COM that the sales to Bangladesh market were supported by scarce import PE and PP offers to the country. In the previous week, import offers for Saudi LLDPE Film C4 stood at $890/ton, which is the same level as this week’s price. However, buyers were unwilling to make purchases as the offers were deemed too high. Most buyers were submitting bids at $40/ton lower from the initial offer level. The trader rejected the bids as the company predicted that once buyers are aware that the prices are generally up, buyers might just start to make procurement due to the limited offers in the market as Middle Eastern producers usually announced new offers after the 20th of the month. As predicted, the trader managed to sell Saudi LLDPE Film C4 at $890/ton on the week starting June 15. While for PP, the offers for Saudi PP Homo Fiber are available at $980/ton and there is no deal recorded so far. All offers on LC at sight, CFR Chittagong Port.
Regarding the demand, SSESSMENTS.COM was informed that some downstream factories in Bangladesh have resumed production activity. However, the operating rates are kept at low rates as the demand for finished products has yet to pick up. For the outlook, the trader opined that import PE and PP offers will remain firm as usually most Middle Eastern producers will conduct maintenance during summer between June to August. Hence, the supply will remain limited and support the firm offers.
