Pakistan PE Market Players Shy Away From Fresh Procurement, Quantities Booked Prior To Eid Holiday
- Adjustment recorded for certain grades of Saudi PE cargoes for June shipment offers
- Customers already stock up cargoes before the Eid Al-Fitr holiday
- PE demand will most likely follow the macroeconomic movement
Market sources in Pakistan reported to SSESSMENTS.COM that activities in the current week are rather flat as buyers are not actively making procurement. The reason behind this is because the majority of buyers have already purchased some quantities before Eid Al Fitr holiday. On the pricing side, in comparison to a month earlier, June shipment offers for HDPE Blow Moulding from a Saudi producer increased by $30/ton. While LDPE Film and HDPE Pipe cargoes, the offers are kept stable compared to the same period. Sources added that HDPE Film and LDPE Film offers from the leading Saudi polyolefins producer available at $860/ton and $900/ton respectively. Meanwhile, the offers for LLDPE Film C4 from the leading Saudi polyolefins producer recorded at $850/ton. All offers on LC at sight, CFR Karachi Port.
Compared to before the Eid Al-Fitr holiday, the market activities in Pakistan are rather slow as most customers have already booked quite a number of PE cargoes before the holiday. Moreover, buyers are showing resistance towards the higher offers despite the strong demand for packaging materials and firmer monomer prices. On the supply side, there are no issues reported to SSESSMENTS.COM.
Regarding the outlook, the majority of Pakistan market players opined to SSESSMENTS.COM that improvement may be seen in the near term as the government has announced a stimulus for the local industries which is expected to support the economic recovery.
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