Import PP Offers To Pakistan Showed Three Digits Adjustment, Broke New Threshold Level
- Import PP prices to Pakistan adjusted up to three digits
- Limited supply reported for a certain grade of PP
- The current situation does not support any improvement in demand in the near future
Based on the data collected by SSESSMENTS.COM, import PP prices to the Pakistan market were adjusted up by three digits and broke the new threshold level. For July shipment, the leading Saudi polyolefins producer announced offers for PP Homo Film and PP Homo Raffia with increases of $120/ton. At the moment, the offers for PP Homo Film and PP Homo Raffia are available at $1,000/ton and $970/ton respectively, all on LC at sight, CFR Karachi basis. Similarly, another Saudi polyolefins producer increased PP Homo Raffia price by $80/ton. While from Kuwaiti producer, the offers for PP Homo Raffia for July shipment hiked by $120/ton. For PP Homo Injection of Saudi origin, market talks have it that the offers edged higher by $80/ton. All prices comparison compared to the offers for June shipment.
Buyers were showing a tepid response towards the significant upward price adjustment. Taking into account the current situation in Pakistan which is under ‘’smart lockdown’’ and the volatility in the feedstocks market, buyers are unwilling to build-up materials. Hence, most of them prefer to procure on a hand to mouth basis. On the supply front, market players notified SSESSMENTS.COM that supply for PP Homo Injection is limited since sellers have no spot cargoes to offer. Similarly, most Middle Eastern producers claimed to have limited allocation to the Pakistan market for July shipment. However, the major ground of limited supply from producers’ end remains unclear, whether due to reduced production rate or diverted more allocation to other markets in order to secure better netbacks.
Regarding the outlook for Pakistan PP market, players did not say much about this. At the moment, SSESSMENTS.COM noted most market participants prefer to adopt a wait and see stance and monitor the outcome of the measures in curbing the Coronavirus outbreak. As such, a sign of improvement in demand for PP in the near future remains bleak.
