Pakistan PE Market Resumed With Improvement In Demand, Backed By Government Stimulus
- Pakistani manufacturers have been allowed to restart operation with effect from May 9
- Demand for HDPE Film is reported as the strongest at the moment
- The government launched a stimulus to boost the economic condition
As noted, On May 7, the Pakistani government announced to ease lockdown phase-wise with effect from May 9 2020. Following the announcement, market activities in the country have been more active since many manufacturers restarted operation. Replenishment activities were seen in the market as buyers have refrained from buying for almost two months, one of the local traders informed SSESSMENTS.COM. Speaking of import offers, the trader informed that May shipment PE offers from a United Arab Emirates producer surfaced with a reduction of between $10-20/ton from April shipment. Another trader mentioned that the leading Saudi polyolefins producer sold their LLDPE Film C4 at $760/ton on LC at sight, CFR Karachi Port. For HDPE Film, the trader sold Saudi cargoes at $750/ton, while United Arab Emirates cargoes at $740/ton, both on LC at sight, CFR Karachi Port.
Demand-wise, sales for PE resins in Pakistan market are better than last week as supported by ease lockdown phase-wise announced by the government. Currently, the best demand for this week is observed for HDPE Film. Some traders also opined that even once the replenishment activity is done, the demand is unlikely to decrease again because the government has launched stimulus for the local industry to boost the economic condition. Overall, demand for polymers products in Pakistan is improving this week. For the end-products, demand improvement is entirely dependent on local consumption as demand from the export market is still feeble due to Coronavirus issue. As such, Pakistani converters are currently only producing to fulfil domestic demand. No issue in supply was reported to SSESSMENTS.COM this week.
Looking ahead, Pakistan PE market is predicted to be quiet in the upcoming week. As told to SSESSMENTS.COM, Pakistan will start their Eid Al-Fitr holiday from May 23 until May 27, and buyers will stop procurement activities preceding a week-long holiday and start buying again after the holiday.
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