Import PE Offers To Bangladesh Remained Scarce, Reimposed Lockdown Predicted To Affect Market Sentiment Further
- Emirati PE producer expected to announce July shipment offers on July 2
- Most converters currently only running at 50% from normal production
- Reimposed lockdown will weaken market sentiment further
As told to SSESSMENTS.COM, reimposed lockdown in red-zones districts is predicted to affect market sentiment in Bangladesh PE market further. On the week commencing June 22, no fresh PE offers available in Bangladesh market. Market players are still waiting for July shipment offers from several foreign suppliers. For Middle East origin, July shipment offers from an Emirati PE producer to Bangladesh expected to come out by next Thursday, July 2. As for Indian cargoes, a global trading house voiced out sell idea for HDPE Yarn and LLDPE Film C4 between $910-920/ton and $860/ton, respectively on LC at sight, CFR Chittagong Port.
With the Coronavirus cases continue to mount in Bangladesh, the government decided to reimpose lockdown in several red-zones areas. So far, 15 out of 60 districts in Bangladesh have been labelled as red-zones. Different dates for the period of lockdown has been announced for various districts depending on the assessment of the local authorities. SSESSMENTS.COM noted, as of June 24, the total number of people infected in the country has gone up to 123,000 with the death toll has gone up to 1,582. Due to this, buying sentiment for the finished product weakened following the reimposed lockdown. People are more cautious about their spending and prefer buying only on a need basis. On the production sector, as the government appealed everyone to stay on physical distancing coupled with slow demand, most converters currently only running at 50% from normal production. On the supply side, no significant issue reported.
Looking ahead, Bangladeshi market players believe that lockdown in the country will weaken market sentiment further. While in terms of pricing, July shipment offers from foreign suppliers expected to be firm following the global market trend, as stated to SSESSMENTS.COM.
