Bangladesh PP Market Hitting A Wall Due To Several Factors
- Done deal for import Indian PP Homo Raffia concluded at the initial offer level
- Shipment from the leading Indian petrochemical producer will be delayed
- Import PP prices predicted to remain firm, yet unsure on the sustainability
Bangladeshi market players informed SSESSMENTS.COM that the PP market in the country is hitting a wall due to several factors. For the week commencing June 29, import PP offers to the Bangladesh market are still recorded in an uptrend. Compared to a week earlier, the offers for Indian PP Homo Raffia were captured higher by $20/ton with done deals successfully concluded at the initial offer level. For Middle Eastern cargoes, sources added that there are no fresh quotations received as most producers have closed the offers last week and sold at $950-960/ton-level to the Bangladesh market.
Market sources reported to SSESSMENTS.COM that the banking issues that persist in the country are still becoming a barrier for businesses. Moreover, players remain cautious as the number of daily COVID-19 cases in the country continues to soar. As of June 30, the number of coronavirus cases jumped by 3,682 to 145,000 cases. However, a global trading house stated that the company still managed to conclude a deal at the initial offer level. Although the sales from the company’s end are slowing down as 70% of customers have already secured sufficient cargoes. On the supply side, market sources informed that the shipment from the leading Indian petrochemical producer will be delayed as the producer is prioritizing for high-priced cargoes. As such, there will be some delays in shipment for old orders as it was booked at much lower prices.
Looking ahead, market sources predict that import PP prices will most likely remain firm in the near term. However, sources are unsure about the sustainability of the current trend as the increment is only supported by the relatively limited supply and production. Meanwhile, the actual demand for PP in the country is still slow, SSESSMENTS.COM.
