Bangladesh PE Market Affected By Butterfly Effect Of China Market
- Import PE offers of India origin adjusted in polar opposite with global trend
- Buying sentiment has started to shift
- Outlook for import PE offers move into two directions
Bangladeshi market players unveiled to SSESSMENTS.COM that PE market in the country is affected by the butterfly effect of China market. Due to the Iran cargoes issues in the China market, import PE prices to the Bangladesh market got a free ride to increase. Traders are utilizing the momentum to maximize profit. Sell Idea for Saudi HDPE Film stood between $990-1,000/ton on LC at sight, CFR Chittagong Port, while buyers’ buy idea stood between $30-40/ton lower. For LLDPE Film C4 cargoes, Indian producers applied different directions of price adjustment. An Indian PE producer adjusted up offers of as much as $90/ton as compared to last week’s level. Meanwhile, the leading Indian petrochemical producer reduced the offers by $25/ton compared to the same period as the previous offers were deemed too high. At the moment, the offers stand at $955/ton, but buyers are still asking for $930-940/ton-level. For Saudi cargoes, the deals for LLDPE Film C4 were achieved between $940-950/ton. While US LLDPE Film C4 cargoes captured at the lowest level compared to the other origins, at $910/ton. However, there are no inquiries since the material is not preferable. All offers are on LC at sight CFR Chittagong Port.
Buying sentiment in the Bangladesh PE market has started to improve. Sellers are not having any difficulties in moving out the materials. Buyers’ acceptance towards the current price level is also good as they are willing to secure materials at the initial offer levels. For the upcoming transactions, some buyers are willing to pay higher than the latest deals concluded, particularly for Saudi LLDPE Film C4 cargoes. After being quiet for a while, buyers also started to submit inquiries for HDPE Film. Seems like manufacturers need to replenish their inventory as it has been depleted, sellers told SSESSMENTS.COM. On the supply front, although supply is not ample, it does not lead to a serious problem.
Looking ahead, some Bangladesh market players believe that PE prices will remain firm at least for July-August on the back of limited supply. Meanwhile, some others foresee that the uptrend on PE prices would not last for a long time, especially for LLDPE Film C4, as the price gap between China and Bangladesh market is too wide. Demand-wise, the preparation for Eid Al-Adha is expected to boost demand for PE in the upcoming week, as stated to SSESSMENTS.COM.
