Coronavirus Pandemic Remain An Obstacle For PE Market Movement In Pakistan
- Done deals recorded for import Middle Eastern PE cargoes across all grades
- Demand in the country remains sluggish
- Import PE prices predicted to remain firm
Market players opined to SSESSMENTS.COM that coronavirus pandemic remains an obstacle for PE market movement in Pakistan. On a weekly comparison, sources reported that the offers for import HDPE grades of Saudi and US origins were overall stable. In the meantime, other sources mentioned that the offers for import PE cargoes of Indian and Middle East origins to Pakistan generally increased between $80-100/ton from last month. Sources revealed that buyers’ acceptance level towards the price is getting better and there were some deals concluded in the market. For Saudi HDPE Film and HDPE Blow Moulding cargoes, done deals were concluded at $930/ton and between $900-930/ton respectively. While deals for Qatari LDPE Film and Middle Eastern LLDPE Film C4 were closed at $960/ton and $920/ton respectively. All offers on LC 90 days, CFR Karachi Port.
According to market sources’ report to SSESSMENTS.COM, PE demand in Pakistan remains sluggish as buyers are still cautious in making procurement, especially for big volume purchases. Although better demand can be seen for LLDPE grades as the availability from Middle Eastern producers is limited. Moreover, the number of new confirmed coronavirus cases in the country remains high. As of July 8, the number of coronavirus cases in Pakistan recorded at 237,000, an addition of 2,980 cases from the previous day. Despite the current situation, sources mentioned that buyers are more willing to accept the high price as most suppliers already announce July shipment price and the offers are going up.
Looking ahead, market players opined to SSESSMENTS.COM that import PE prices will most likely remain firm in the near term. While for the demand, sources predict that it will maintain at the current level as the demand from downstream factories is still sluggish while the number of confirmed coronavirus cases continues to increase. However, some players are expecting to see an increase in number of transactions in the market as buyers are more willing to accept the current price level.
