- An uptrend in import prices only captured in January
- Demand for PP started to weaken at the end of January
- Players voiced out a pessimistic outlook for PP market in Q2 2020
As reported to SSESSMENTS.COM, import offers for PP across different grades in the Bangladesh market captured on an uptrend in the first month of Q1 2020. On a weekly comparison, import PP offers of Saudi and India origin went up between $30-40/ton. Via a global trading house, offers for Middle Eastern PP Homopolymer grades dipped between $10-20/ton from a month earlier. For February shipment, offers for PP cargoes from an Emirati producer raised between $20-30/ton. Likewise, PP Homo Film and PP Homo Injection cargoes of India origin also increased by $10/ton. From Saudi cargoes, import PP Homo Raffia offers surfaced with an increase of $10/ton. All compared to January shipment offers.
In February, a global trading house managed to conclude deals for Saudi PP Homo Raffia and PP Homo Injection at the initial offer levels. In comparison to the previous week, Chinese PP Homo Raffia cargoes emerged with a decrease of $30/ton. For March shipment offers, SSESSMENTS.COM’s data showed that PP Homo Raffia and PP Homo Film cargoes from a South African and Middle Eastern producer dropped between $20-30/ton. From the United Arab Emirates, PP cargoes across all grades surfaced with a reduction of between $10-20/ton, while PP Block Copolymer decreased significantly between $50-60/ton. Moreover, Indian PP Homo Injection and PP Homo Raffia cargoes declined by $20/ton. All compared to February shipment offers.
Strolling to March, import offers for Middle Eastern PP Homo Raffia and PP Homo Injection cargoes went down between $20-30/ton in the second week of the month. Meanwhile, in late March, PP Homo Raffia offers of India origin were lowered between $40-50/ton. All price changes were on a weekly comparison. For deals, a global trading house managed to sell Indian PP cargoes, with deals for PP Homo Injection were slightly higher than PP Homo Raffia as the supply was lesser. At the final week of the month, the ripple effect of Coronavirus outbreak seen in the Bangladesh market and led to a decline in the number of transactions as well as inquiries, SSESSMENTS.COM was told.
In the first half of January, demand for PP was striking due to the sudden surge in crude oil prices following the US-Iran tension. Afterwards, as most converters already have sufficient stock, buying sentiment started to weaken. At the same time, buyers were also cautious that Coronavirus issues in China would affect polymers prices. In February, the overall demand remained sluggish, yet a slight improvement was observed at the end of the month as buyers were running out of stocks. In March, the outbreak of COVID-19 intensified and deteriorated buying sentiment further. Since the Coronavirus cases increased, the Bangladesh government decided to impose a nationwide lockdown starting from March 26 until April 4. As a result, logistics and trading activities were affected. Most market players preferred to adopt a wait-and-see stance in anticipation of lower prices. On the supply side, tightness in PP cargoes was reported during January and March. Likewise, supply for PP Homo Homo Film was scarce in March due to limited offers from foreign suppliers, SSESSMENTS.COM noted.
Regarding the outlook, Bangladeshi market players contacted by SSESSMENTS.COM opined that the Coronavirus lockdown might be extended and it will heavily affect the PP market. Due to this, players voiced out their pessimistic outlook for Bangladesh PP market onward.
Range of import PP transactions in January on LC at sight, CFR/CIF Bangladesh Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Term |
|---|
| Middle East | PP Block Copolymer | Offer Given | 1,040-1,050 | CFR |
| Indian Subcontinent | PP Homo Film | Offer Received | 1,065 | CFR |
| Indian Subcontinent | PP Homo Film | Sold | 1,025 | CFR |
| Middle East | PP Homo Film | Buy Idea | 1,050-1,060 | CFR |
| Middle East | PP Homo Film | Offer Given | 1,050 | CIF |
| Middle East | PP Homo Film | Offer Received | 1,100 | CFR |
| Middle East | PP Homo Film | Sold | 1,060 | CFR |
| Southeast Asia | PP Homo Film | Offer Given | 1,180 | CFR |
| Indian Subcontinent | PP Homo Injection | Sold | 1,000 | CFR |
| Middle East | PP Homo Injection | Offer Given | 1,020 | CIF |
| Middle East | PP Homo Injection | Offer Received | 1,050 | CIF |
| North America | PP Homo Injection | Offer Received | 1,000 | CIF |
| Southeast Asia | PP Homo Injection | Offer Given | 1,155 | CFR |
| Southeast Asia | PP Homo Injection | Sold | 1,140 | CFR |
| China | PP Homo Raffia | Offer Given | 1,030 | CFR |
| Indian Subcontinent | PP Homo Raffia | Sold | 1,000 | CFR |
| Middle East | PP Homo Raffia | Buy Idea | 1,010 | CFR |
| Middle East | PP Homo Raffia | Offer Given | 1,020 | CIF |
| Middle East | PP Homo Raffia | Offer Given | 1,000 | CFR |
| Middle East | PP Homo Raffia | Offer Received | 1,030 | CFR |
| Middle East | PP Homo Raffia | Offer Received | 1,020-1,050 | CIF |
| Middle East | PP Homo Raffia | Sold | 1,020 | CFR |
| North America | PP Homo Raffia | Offer Received | 1,010-1,025 | CIF |
| Southeast Asia | PP Homo Raffia | Offer Given | 1,155 | CFR |
| Southeast Asia | PP Homo Raffia | Offer Received | 1,010 | CIF |
| Southeast Asia | PP Homo Raffia | Offer Received | 1,050 | CFR |
| Southeast Asia | PP Homo Raffia | Sold | 1,000 | CFR |
| Middle East | PP Random Copolymer Injection | Offer Given | 1,040-1,050 | CFR |
Range of import PP transactions in February on LC at sight, CFR/CIF Bangladesh Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Term |
|---|
| Middle East | PP Block Copolymer | Offer Received | 990 | CFR |
| Indian Subcontinent | PP Homo Film | Offer Given | 1,080-1,090 | CIF |
| Middle East | PP Homo Film | Bid Received | 970-975 | CIF |
| Middle East | PP Homo Film | Offer Given | 980 | CIF |
| Middle East | PP Homo Film | Offer Received | 980 | CFR |
| Southeast Asia | PP Homo Film | Sold | 1,170-1,180 | CIF |
| Indian Subcontinent | PP Homo Injection | Bid Given | 980-1,000 | CFR |
| Indian Subcontinent | PP Homo Injection | Offer Given | 1,050 | CIF |
| Indian Subcontinent | PP Homo Injection | Offer Received | 960 | CFR |
| Middle East | PP Homo Injection | Bid Received | 950-955 | CIF |
| Middle East | PP Homo Injection | Offer Given | 1,050 | CIF |
| Middle East | PP Homo Injection | Offer Given | 980-1,030 | CFR |
| Middle East | PP Homo Injection | Offer Received | 980 | CFR |
| Middle East | PP Homo Injection | Sold | 1,030 | CFR |
| Southeast Asia | PP Homo Injection | Sold | 1,155 | CIF |
| Southern Africa | PP Homo Injection | Offer Received | 980 | CFR |
| China | PP Homo Raffia | Buy Idea | 950 | CFR |
| China | PP Homo Raffia | Offer Given | 1,000 | CFR |
| China | PP Homo Raffia | Offer Received | 950 | CFR |
| China | PP Homo Raffia | Sold | 970-980 | CFR |
| Indian Subcontinent | PP Homo Raffia | Bid Given | 980-1,000 | CFR |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 980 | CIF |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 960 | CFR |
| Indian Subcontinent | PP Homo Raffia | Sold | 990 | CFR |
| Middle East | PP Homo Raffia | Bid Received | 950 | CFR |
| Middle East | PP Homo Raffia | Bid Received | 950-955 | CIF |
| Middle East | PP Homo Raffia | Offer Given | 960-1,030 | CFR |
| Middle East | PP Homo Raffia | Offer Given | 960 | CIF |
| Middle East | PP Homo Raffia | Offer Received | 950-1,010 | CFR |
| Middle East | PP Homo Raffia | Offer Received | 1,010-1,070 | CIF |
| Middle East | PP Homo Raffia | Sold | 960-1,030 | CFR |
| Southeast Asia | PP Homo Raffia | Offer Received | 1,020 | CFR |
| Southeast Asia | PP Homo Raffia | Sold | 1,155 | CIF |
| Southern Africa | PP Homo Raffia | Offer Received | 980 | CFR |
| Middle East | PP Random Copolymer Injection | Offer Received | 1,040 | CFR |
Range of import PP transactions in March on LC at sight, CFR/CIF Bangladesh Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Term |
|---|
| Indian Subcontinent | PP Homo Film | Offer Given | 1,020 | CIF |
| Middle East | PP Homo Film | Offer Given | 950 | CFR |
| Middle East | PP Homo Film | Offer Given | 980-990 | CIF |
| Southeast Asia | PP Homo Film | Offer Given | 1,030-1,040 | CIF |
| Indian Subcontinent | PP Homo Injection | Offer Given | 960 | CFR |
| Indian Subcontinent | PP Homo Injection | Sold | 980-990 | CFR |
| Indian Subcontinent | PP Homo Injection | Offer Given | 950-960 | CIF |
| Middle East | PP Homo Injection | Bid Received | 780 | CFR |
| Middle East | PP Homo Injection | Offer Given | 820-830 | CFR |
| Middle East | PP Homo Injection | Offer Given | 920-960 | CIF |
| Southeast Asia | PP Homo Injection | Offer Given | 900-910 | CFR |
| China | PP Homo Raffia | Buy Idea | 900 | CFR |
| China | PP Homo Raffia | Offer Given | 910-925 | CFR |
| China | PP Homo Raffia | Sold | 910-920 | CFR |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 880-950 | CFR |
| Indian Subcontinent | PP Homo Raffia | Sold | 880-940 | CFR |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 940-960 | CIF |
| Indian Subcontinent | PP Homo Raffia | Sold | 940-950 | CIF |
| Middle East | PP Homo Raffia | Bid Received | 780 | CFR |
| Middle East | PP Homo Raffia | Buy Idea | 900 | CFR |
| Middle East | PP Homo Raffia | Offer Given | 920-940 | CFR |
| Middle East | PP Homo Raffia | Offer Received | 910-920 | CFR |
| Middle East | PP Homo Raffia | Offer Given | 920-960 | CIF |
| Southeast Asia | PP Homo Raffia | Offer Given | 880-930 | CFR |
| Southeast Asia | PP Homo Raffia | Offer Received | 920-930 | CFR |
Tags: Bangladesh,English,ISC,PP,Quarterly
Published on April 6, 2020 5:51 PM (GMT+8)
Last Updated on April 6, 2020 5:51 PM (GMT+8)
