Pakistan PP Market Took A Breather Ahead Of Eid Al-Adha Holiday
- Import prices shifted in the same trend for nine consecutive weeks
- Market sentiment leaning towards a more bearish tone
- A further price increase is a viable option on post-holiday
Pakistani market players revealed to SSESSMENTS.COM that the Pakistan PP market took a breather ahead of Eid Al-Adha holiday as manufacturing activity dwindled, limiting trade activities in the country. Eid Al-Adha holiday, an annual celebration in the Muslim calendar that takes place at the end of the Hajj pilgrimage, is slated to take place from July 30 to July 31. Despite the market already winding down ahead of the holiday, Pakistan import PP prices have gained some strengths this week, driven by a relentless rally in the energy market. As noted, import PP prices in Pakistan have been rallying for nine consecutive weeks since the end of May. This week, a Saudi producer has announced fresh offers for August shipment to the Pakistan market. In comparison to the offer level available two weeks earlier, the producer applied a price increase of $10/ton for PP Homo Raffia and PP Homo Injection cargoes, available at $990/ton respectively on LC at sight, CFR Karachi Port. These offers are only valid until July 28, 2020. The upcoming holiday has stirred concern among suppliers about a slowdown in the growth of trade which would dry up demand for PP resins.
Pakistan PP market was not bustling with activity in the early of this week, although the Eid Al-Adha holiday is around the corner. This week, Pakistani market players retreated to the sidelines and wound down their activities in the market ahead of the holiday, leading to a drop-off in domestic demand. Overall, downstream demand has yet to return to the pre-crisis level. However, some manufacturers are gradually ramping up production activities, although a rebound in consumer confidence has yet to translate into widespread spending. On the supply side, no significant supply issues reported to SSESSMENTS.COM this week.
For the outlook, sources in Pakistan believe that market expectations of pent-up demand after the Eid Al-Adha holiday will prompt suppliers to target higher prices.
