Import PE Price Trend To Bangladesh Prolongs, Market Players Doubted Its Sustainability
- Import PE offers from several origins are available in the market
- Delayed shipment reported for Indian cargoes
- Bangladeshi market players doubted the sustainability of the current price trend
The uptrend on import PE offers to the Bangladesh market last week prolongs to this week, however, market players doubt the sustainability of the current price trend. Within the week commencing June 29, import PE offers from various origins finally available in the Bangladesh market. Offers for import LLDPE Film C4 from the leading Indian petrochemical producer surfaced with increases of $50-60/ton as compared to last week’s level, with the deals achieved at the initial offer level. For Emirati cargoes, the deals for HDPE Film were achieved at $860/ton and between $860-870/ton for LLDPE Film C4, all offers are on LC at sight, CFR Chittagong Port. For LDPE Film, the producer claimed to have a limited volume and has no offer to Bangladesh this week. Offers for US cargoes also emerged in the Bangladesh market this week. Offers for US HDPE Film and LLDPE Film C4 are available at $900/ton and $1,000/ton respectively, with the same payment and shipment term. However, SSESSMENTS.COM was told that buyers show limited interest in the US cargoes. Some buyers were asking for LLDPE Film C4 of Thailand origin, but the producer is not able to provide some allocations due to tight supply on their end.
Demand-wise, Bangladeshi market players stated that buying sentiment has started to improve. Some sellers claimed to receive more inquiries this week, but could not fulfil due to no allocation, particularly for LLDPE Film C4 of Thailand origin. The most satisfactory sales captured on LLDPE Film C4 as the offers available in the market are rather limited. For LDPE Film, stocking up activities have already occurred. Hence, this week buyers are just waiting on the side-line. The obstacle that is slowing down the business is the payment issue since banks still cannot issue the Letter of Credit (LC) on the back of limited funds. On the supply front, delayed shipment reported for leading Indian petrochemical producer’s cargoes. The producer claimed to have manpower issues previously, but the problem is getting resolved and all of the orders are being dispatched and shipped out, as stated to SSESSMENTS.COM.
In the days to come, Bangladeshi market players opined that PE prices would remain firm in the near time. However, they also doubt how long the uptrend could last since the supply and production costs are the reasons for the high prices. Demand is still unreliable as a major supporting factor. Added to that, nowadays, buyers are worried about the coronavirus outbreak and the rainy season that causes floods, SSESSMENTS.COM was told.
