Supply Issue Provided Cushion For Import PP Offers In Bangladesh Market
- A significant adjustment applied on import Indian PP offers to Bangladesh
- Buyers show acceptance towards the high PP prices in the market
- PP market will be a little bit quiet during Eid Al-Adha holiday
As informed to SSESSMENTS.COM, supply issue has provided a cushion for Import PP offers in Bangladesh market. On the week commencing July 13, import PP offers in Bangladesh captured on an uptrend as supported by tight supply at the suppliers’ end. Offers for Middle Eastern PP Homo Injection and PP Homo Raffia via a global trading house were available at $30/ton higher compared to last week’s level. Deals for both products concluded at $10/ton lower than the initial offer levels at $980/ton on LC at sight, CFR Chittagong Port. While for Indian cargoes, offers for PP Homo Injection and PP Homo Raffia increased between $50-60/ton compared to the same period. As for another origin, a trader was offering Vietnamese PP Homo Raffia cargoes to Bangladesh at $1,025/ton on the same payment and delivery terms. Until the time of publication, no deals achieved for Indian and Vietnamese cargoes yet.
SSESSMENTS.COM noted that buying sentiment in the Bangladesh market is improving week by week. Buyers continue to show acceptance towards the high PP prices in the market. A trader mentioned that the company does not have any difficulties in selling PP cargoes in the market. On the supply side, the availability of PP materials is limited, particularly for PP Homo Injection. Most Middle Eastern producers prefer to move more cargoes to Europe market; hence, they have to cut PP allocation to Asia market, including Bangladesh.
Looking ahead, Bangladeshi market players believe that room for PP prices to decrease in the near term is slim as no factors triggering downward movements while bullish market sentiment expected to last until August. However, PP market will be a little bit quiet during Eid Al-Adha holiday, sources stated to SSESSMENTS.COM.
