Bangladesh PE Market Saw Increment In Buyers’ Inquiries, Deals Remained Scarce
- Bangladesh government extended the lockdown until May 16
- Import offers remain scarce
- No deals concluded due to payment issue
A global trading house informed SSESSMENTS.COM that the company got plenty of inquiries from Bangladeshi buyers this week. However, most of it just wanted to check prices, and no intention to place orders. This week, the trader offered LDPE Film and LLDPE Film C4 from the leading Indian petrochemical producer, which was kept stable as compared to two weeks ago. For Middle Eastern cargoes, the trader offered LLDPE Fim C4 cargoes at $780-800/ton, which is deemed unworkable. As for Taiwanese cargoes, LDPE Film is available at $900/ton, but no deals were concluded as no inquiries for LDPE Film from customers this week. All offers are on LC at sight, CFR Chittagong Port.
Demand for PE resins in Bangladesh remains sluggish over the week despite the number of inquiries increased. Payment issues cited as the main factor affecting trading activities in the country. Even if deals concluded, the bank does not have supporting payment services at the moment as customers still cannot open a Letter of Credit (LC). Additionally, Bangladesh is still under lockdown and the government has decided to extend it until May 16. On the supply front, a trader told SSESSMENTS.COM that an Omani producer will not be able to give offers for June shipment to Bangladesh because they will have maintenance at their PE plants in June, but no information regarding the exact schedule.
As Bangladesh will still be under lockdown until May 16, the near-term outlook for PE pricing and demand remains bleak. The majority of market players opined to SSESSMENTS.COM that Bangladesh PE market will remain bearish in the upcoming week, and will only recuperate once lockdown is lifted.
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