Bangladeshi Market Players Predict Possibility For PE Price Adjustment Following Businesses Activity Resumption
- Sources expressed possibility for import Malaysian LDPE Film offers to reach $1,000/ton-level
- Operational working hours in the country is limited, from 10 am to 4 pm
- PE prices predicted to remain firm following demand improvement
Compared to the offer level before the Eid Al-Fitr holiday, the offers for import LDPE Film and LLDPE Film C4 were between $40-50/ton higher. Sources revealed that the offers for import LLDPE Film C4 of Indian and Saudi origins maintained firm at above $800/ton-level, stood at $810/ton for Indian origin, and $820/ton for Saudi origin. While for US LLDPE Film C4 cargoes, SSESSMENTS.COM was told that there are no offers available at the moment as the allocation has been sold out to the other markets, especially to China. On June 1, the offers for import LDPE Film cargoes from Malaysia were recorded at $950/ton with the deals concluded at the initial offer level. However, there offers are no longer available as of June 2 and there is a possibility for the offer to be adjusted higher to $1,000/ton-level in the near term. All offers on LC at sight, CFR Chittagong Port.
According to market sources report to SSESSMENTS.COM, PP demand in Bangladesh is rather slow as most players are still monitoring the market situation and the orders received are limited so far. Most factories and offices are starting to resume operations although the working hours are limited from 10 am to 4 pm. Regarding the operating rates at factories in Bangladesh, there is no detailed information yet. On the supply side, there are no significant issues reported in the country.
Looking ahead, market players are optimistic that the overall demand will start to increase in the following week as more and more countries will allow economic activity to resume. For the pricing outlook, most believe that import PE offers will remain firm as supported by the stronger energy market and higher monomer prices, SSESSMENTS.COM was told.
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