- An upward trend in import PE prices only captured in January
- Improvement in demand observed in the first half of January
- PE prices will decrease further following weak demand and softer monomer prices
At the beginning of Q1 2020, SSESSMENTS.COM’s data showed that import PE prices in Bangladesh captured stable to firmer. For HDPE grades, Saudi HDPE Film and HDPE Blow Moulding via a Dubai-based trader were mostly available at $950/ton. While for LDPE Film, buyers’ bids at $10-20/ton lower than the initial offers for Saudi cargoes were rejected as the trader was unwilling to sell lower due to limited allocation. Eventually, deals for LDPE Film were concluded at the initial offers, at $1,020/ton. For LLDPE Film C4, the offers for US cargoes increased by $50/ton on a weekly comparison. However, after the sudden spike in crude oil prices stemming from the US-Iran tension, the offers were withdrawn. In the final week of January, import offers for HDPE Film, LDPE Film, and LLDPE Film C4 cargoes of Middle East, Southeast Asia, and North America origins moved up between $30-50/ton on the monthly comparison. All offers were on LC at sight, CFR/CIF Bangladesh Main Port basis.
In February, Middle Eastern HDPE Film cargoes decreased between $50-60/ton on the monthly comparison. For LDPE Film, a continuous reduction captured on import LDPE Film offers of Malaysia origin. As SSESSMENTS.COM noted, offers for Malaysian cargoes in late February were between $90-100/ton lower than the offers available at the beginning of the month. Despite the significant drop, buyers’ response remained cold as they were still expecting lower prices on the back of the slow market activities in China. Whereas for LLDPE Film C4, offers for import LLDPE Film C4 of Middle East origin fluctuated significantly. In the second week, the offers decreased by $50/ton as compared to a week earlier, stood at $900/ton. But in late February, the offers for Middle Eastern LLDPE Film C4 cargoes were already available at $850/ton. All offers were on LC at sight, CFR/CIF Bangladesh Main Port basis.
Moving to March, the downtrend in the economic sector affected the Bangladesh PE market. For HDPE grades, offers for South Korean HDPE Blow Moulding decreased between $10-20/ton compared to February. In the third week of the month, offers for Indian LDPE Film cargoes were down between $20-40/ton as compared to the beginning of March. At the same time, import offers for US LLDPE Film C4 cargoes recorded lower by $30/ton from a week earlier, as noted by SSESSMENTS.COM. Meanwhile, import LLDPE Film C4 offers of India origin decreased by $50/ton on a weekly comparison due to inventory pressure.
Throughout Q1 2020, demand for PE in the Bangladesh market was mostly slow. The improvement was seen only in the first half of January as supported by high crude oil prices coupled with tight supply for LDPE Film and LLDPE Film C4. Contrastingly, demand for HDPE Film was slow at that time. As most buyers already have sufficient inventory, demand began to shrink in late January. In February, buying sentiment was hampered by the political issues in the country. Besides, the Coronavirus outbreak had put buyers on a wait-and-see position and expecting lower prices, taking into account the slow market activities in China. Afterwards, the intensified Coronavirus spreads, slow sales for the end products, and the Saudi-Russia’s oil price war were the major factors of the sluggish demand for PE in March. By the end of March, there were hardly any market activities in Bangladesh due to Coronavirus lockdown. Amid the lockdown, the delivery and production activities are disrupted due to the lack of manpower. On the supply front, SSESSMENTS.COM was told that short PE supply was reported in January and early February, but there was no significant impact on the market.
Entering Q2 2020, the majority of market participants stated that import PE prices to Bangladesh market would decrease further as demand is expected to remain sluggish amid the Coronavirus pandemic and the softer monomer prices, as stated to SSESSMENTS.COM.
Range of import PE transactions in January on LC at sight, CFR/CIF Bangladesh Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Term |
|---|
| Middle East | HDPE Blow Moulding | Offer Given | 950 | CFR |
| Southeast Asia | HDPE Blow Moulding | Sold | 950 | CFR |
| Middle East | HDPE Film | Bid Received | 910-920 | CFR |
| Middle East | HDPE Film | Offer Given | 950 | CFR |
| Middle East | HDPE Film | Offer Received | 850-860 | CFR |
| Southeast Asia | HDPE Film | Sold | 950 | CFR |
| North America | HDPE Pipe (PE 100) | Offer Received | 1,000 | CIF |
| Middle East | LDPE Film | Bid Received | 1,000-1,020 | CFR |
| Middle East | LDPE Film | Buy Idea | 1,030-1,050 | CFR |
| Middle East | LDPE Film | Offer Given | 1,020-1,030 | CFR |
| Middle East | LDPE Film | Offer Given | 935-945 | CIF |
| Middle East | LDPE Film | Offer Received | 1,050 | CFR |
| Middle East | LDPE Film | Sold | 1,020-1,030 | CFR |
| North America | LDPE Film | Buy Idea | 930 | CFR |
| North America | LDPE Film | Offer Given | 1,000 | CFR |
| Southeast Asia | LDPE Film | Offer Received | 1,050-1,100 | CFR |
| Middle East | LLDPE Film C4 | Buy Idea | 930 | CFR |
| Middle East | LLDPE Film C4 | Offer Received | 850-880 | CFR |
| North America | LLDPE Film C4 | Offer Given | 880 | CFR |
| North America | LLDPE Film C4 | Offer Received | 800-820 | CFR |
| North America | LLDPE Film C4 | Offer Received | 850 | CIF |
| Southeast Asia | LLDPE Film C4 | Offer Received | 900 | CFR |
| Middle East | mLLDPE C6 | Offer Given | 1,130 | CIF |
Range of import PE transactions in February on LC at sight, CFR/CIF Bangladesh Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Term |
|---|
| North America | HDPE Blow Moulding | Offer Received | 875 | CIF |
| Middle East | HDPE Film | Offer Given | 860-870 | CFR |
| Middle East | HDPE Film | Offer Received | 800 | CFR |
| North America | HDPE Film | Offer Received | 885 | CIF |
| Indian Subcontinent | HDPE Yarn | Offer Given | 930-940 | CIF |
| Southeast Asia | LDPE | Offer Received | 990-1,000 | CFR |
| Indian Subcontinent | LDPE Film | Buy Idea | 980-1,000 | CFR |
| Middle East | LDPE Film | Offer Given | 920-930 | CFR |
| Middle East | LDPE Film | Offer Received | 1,000 | CFR |
| North America | LDPE Film | Offer Received | 930-950 | CFR |
| Southeast Asia | LDPE Film | Offer Received | 1,080-1,090 | CFR |
| Indian Subcontinent | LLDPE Film C4 | Offer Given | 920 | CIF |
| Indian Subcontinent | LLDPE Film C4 | Offer Given | 900 | CFR |
| Middle East | LLDPE Film C4 | Offer Given | 900 | CFR |
| Middle East | LLDPE Film C4 | Offer Received | 950-980 | CFR |
| Middle East | LLDPE Film C4 | Sold | 880 | CFR |
| North America | LLDPE Film C4 | Offer Received | 850 | CFR |
| Southeast Asia | LLDPE Film C4 | Offer Received | 950 | CFR |
Range of import PE transactions in March on CFR/CIF Bangladesh Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term | Delivery Term |
|---|
| North America | HDPE Blow Moulding | Offer Given | 870 | LC 90 days | CFR |
| North America | HDPE Film | Offer Received | 870 | LC at sight | CFR |
| North America | HDPE Pipe (PE 100) | Offer Received | 1,060 | LC at sight | CFR |
| Indian Subcontinent | HDPE Yarn | Offer Given | 890 | LC at sight | CFR |
| Indian Subcontinent | LDPE Film | Offer Given | 980-1,000 | LC at sight | CIF |
| Indian Subcontinent | LDPE Film | Offer Given | 960 | LC at sight | CFR |
| Middle East | LDPE Film | Offer Given | 980-1,000 | LC at sight | CIF |
| Middle East | LDPE Film | Offer Given | 1,000 | LC at sight | CFR |
| Middle East | LDPE Film | Sold | 1,000-1,010 | LC at sight | CFR |
| North America | LDPE Film | Offer Given | 940-950 | LC at sight | CIF |
| Indian Subcontinent | LLDPE Film C4 | Offer Given | 820-880 | LC at sight | CIF |
| Indian Subcontinent | LLDPE Film C4 | Sold | 860 | LC at sight | CFR |
| Indian Subcontinent | LLDPE Film C4 | Sold | 750 | LC at sight | CFR |
| Middle East | LLDPE Film C4 | Offer Given | 870-880 | LC at sight | CIF |
| Middle East | LLDPE Film C4 | Offer Received | 860 | LC at sight | CFR |
| Middle East | LLDPE Film C4 | Offer Given | 930 | LC at sight | CFR |
| Middle East | LLDPE Film C4 | Sold | 930 | LC at sight | CFR |
| North America | LLDPE Film C4 | Offer Received | 850 | LC at sight | CFR |
| North America | LLDPE Film C4 | Sold | 810 | LC at sight | CFR |
| North America | LLDPE Film C4 | Offer Given | 750-810 | LC at sight | CFR |
| North America | LLDPE Film C4 | Sell Idea | 700 | LC at sight | CFR |
Tags: Bangladesh,English,ISC,PE,Quarterly
Published on April 8, 2020 12:14 PM (GMT+8)
Last Updated on April 8, 2020 12:14 PM (GMT+8)
