Pakistani Market Players Voice Out Opinion On Acceptable Adjustment For Upcoming Import PE Offers
- July shipment offers from Middle Eastern producers captured moving in the same trend
- No demand improvement recorded in Pakistan
- Import PE offers predicted to remain firm
Pakistani market players voice out opinion to SSESSMENTS.COM regarding the acceptable adjustment for upcoming import PE offers. Compared to a month earlier, July shipment offers for HDPE Film and LDPE Film from the leading Saudi polyolefins producer surfaced with an upward adjustment of $90/ton and $60/ton respectively. Likewise, July shipment offers for LLDPE Film C4 from the producer also increased by $70/ton from June shipment’s level. However, triggered by the limited availability of butene, the producer increased the offers for LLDPE Film C4 further by $30/ton on July 1, standing at $950/ton. On July 1, sources informed that July shipment offers from a United Arab Emirates producer to Pakistan has been announced. On a monthly comparison, the offers for HDPE Film and LLDPE Film C4 increased by $120/ton and between $110-120/ton. While for LDPE Film, the producer’s offers surge between $100-110/ton compared to the same period. Other sources revealed that the latest deals for United Arab Emirates HDPE Film cargoes were concluded at $920/ton, which is around $120-130/ton higher compared last month’s prices. All offers on LC at sight, CFR Karachi Port.
According to market sources report to SSESSMENTS.COM, there is no significant improvement recorded in terms of demand as most converters maintain their production rate stable at last month’s level at 60-70% from the normal rate. Market players remain cautious as the number of Coronavirus cases in the country remains high. As of July 1, the total number of cases recorded at 213,470, jumped by 4,133 cases from a day earlier. However, a distributor stated that buyers’ response towards the United Arab Emirates PE cargoes is satisfactory as buyers are accepting the new price level, despite increased by three digits. On the supply side, there is no issue reported.
Looking ahead, market players predict that import PE prices to Pakistan will most likely firm for the upcoming weeks. However, sources opined to SSESSMENTS.COM that the acceptable price increase for Pakistani market is around $10-20/ton. Higher than that, offers will be deemed unattractive and buyers would not be willing to secure materials.
