Pakistani PE Market Players Expect Buying Sentiment To Remain Healthy, Despite “Smart Lockdown” Policy Implementation
- June shipment allocation from a United Arab Emirates producer to Pakistan sold out
- Overall demand in Pakistan has improved since after Eid Al-Fitr holiday
- Buying sentiment expected to remain healthy despite new lockdown policy implementation
As told to SSESSMENTS.COM, a distributor managed to sell all of its June shipment allocations from a United Arab Emirates producer to Pakistan market since early June. Deals were concluded at $790-800/ton for HDPE Film, $850-860/ton for LDPE Film, and $820-830/ton for LLDPE Film C4. The distributor revealed that the June shipment offers were hiked by $40-50/ton on month-on-month comparison and the allocation was limited. For other Middle Eastern origin cargoes, a local trader sold import LLDPE Film C4 from Saudi at $860/ton. The trader also received new offers for LLDPE Film C4 of US origin at $850/ton, or $70/ton higher from offers in early June but no deals concluded yet. All import offers on LC at sight, CFR Karachi Port.
Market sources contacted by SSESSMENTS.COM informed that the overall buying sentiment in Pakistan has improved since after Eid Al-Fitr holiday. Demand for PE resins in the country is ongoing and some factories are running at 60-70% from normal production capacity. As noted, the Pakistan government has lifted its coronavirus-related lockdown since May 9 despite the number of confirmed cases and deaths continues to increase, citing the economic losses to justify the decision. However, as of June 16, some cities in the Province of Punjab and Sindh have been under partial “smart lockdown” policy as Pakistan had identified 20 cities called as “coronavirus hotspots”, which have a possible increase in ratio/speed of infections. Under this "smart lockdown" policy, these hotspots will undergo testing, tracing and quarantining (TTQ) programme, while some economic sectors will be allowed to open to minimize its economic damage. On the supply front, the availability of import PE cargoes in Pakistan is limited.
Looking ahead, market sources contacted by SSESSMENTS.COM believe that the new lockdown policy to be officially imposed by the Pakistan government would not hurt industries. A distributor opined that the new policy would not significantly affect industrial activities as lockdown is mostly in residential areas, as such, buying sentiment for PE resins is expected to remain healthy in the upcoming week. For the pricing outlook, import PE offers to Pakistan will most likely follow the international market trend.
