Pakistani Market Players: Buyers Showed Stiff Resistance Towards Higher Prices, Done Deals Remain Scarce
- No fresh offers available this week
- Demand remains on a bearish tone
- Number of transactions remain limited
Pakistani market players revealed to SSESSMENTS.COM that most buyers are showing stiff resistance towards price increases, while some suppliers prefer to monitor market development before releasing fresh offers. This week, no fresh offers available in the import market. Sources in Pakistan mentioned that the number of transactions and inquiries has been declining significantly over the week. Besides, buyers in Pakistan still refrain from replenishing inventories this week as most are still holding on to sufficient stocks after securing sufficient volume in the previous week. In the week ending June 5, a trader managed to secure a deal for Saudi PP Homo Injection at $860/ton, or at $20/ton lower than the initial offer level. As for PP Homo Raffia grades, a global trading house has finalized a deal for Saudi origin cargoes between $910-920/ton last week. However, customers have shown stiff resistance towards the higher prices this week; hence, most voiced out their buy idea for Saudi PP Homo Raffia between $30-40/ton lower than the initial offer level, or at $880/ton. All offers are on LC at sight, CFR Karachi Port.
Following the continuous rally in energy markets, sentiment has turned more bearish this week on the back of strong buyers resistance toward the higher prices. Activity in the Pakistan PP market remains muted, with limited spot trades was taking place. Some small-scale manufacturers prefer to procure the cargoes on a hand-to-mouth basis, while others are holding back their purchases in anticipation of greater falls in prices in the days to come. Additionally, most big-scale manufacturers already secured some quantities at lower prices. SSESSMENTS.COM’s supply and demand database were informed that the availability of PP cargoes in the market remains sufficient at the moment.
For the outlook, most market participants in Pakistan expect to see lower import offers in the near term considering the current market situation. Likewise, the overall demand is projected to decline in the near term as most buyers would prefer to adopt a wait-and-see stance amid market uncertainties.
