PP Market Depressed Amid Worsening Coronavirus Situation In Bangladesh
- Demand remains subdued amid the worsening impact of COVID-19
- Buyers’ acceptance level for import Middle Eastern PP Homo Raffia changed
- Invariable outlook for Bangladeshi PP market
PP market in Bangladesh depressed amid worsening Coronavirus situation, sources told SSESSMENTS.COM. A regional trading house informed SSESSMENTS.COM that the company could sell Middle East origin PP Homo Raffia cargoes at $910-920/ton last-week. However, buyers’ acceptance level for the same cargoes has changed this week; most were asking for prices at $880/ton-level. For Southeast Asian cargoes, a global trading house received PP Homo Raffia offers from Indonesia at $950/ton for July shipment. All offers on LC at sight, CFR Chittagong Port.
Market players pointed out that buying sentiment in Bangladesh for PP is weakening this week. During this week, only some buyers start to secure some materials but still considered by one of the traders as not too strong. Per a report by Anadolu, the government of Bangladesh on Tuesday, June 9, began to impose lockdown based on three zones - green, yellow, red - as assessed by how severe COVID-19 transmission was in each area. Previously, the lockdown is relaxed during Ramadhan (fasting month) and Eid Al-Fitr holiday as the government allowing stores and malls to open with limited operational hours. Precedents have established since the end of April with the government allowing the garment industry as the vital sector of the Bangladeshi economy to run under strict health regulations. Meanwhile, SSESSMENTS.COM noted that infection rates are rising over the past two weeks, with a total of COVID-19 cases reaching 71,675 cases this Tuesday. No supply issue was reported by market players this week.
Bangladeshi market players then voiced out their outlook to SSESSMENTS.COM that import PP prices might stabilize or slightly drop in the near term, taking into account the worsening Coronavirus situation in the country, which will also lead to bearish market sentiment in the days to come.
