Government Stimulus Boosted Replenishment Activities In Pakistan PP Market
- The government has allowed industries and manufacturers to restart production from May 9
- Pakistan government gives an economic stimulus for the local industry
- Outlook is brighter since the outbreak has been curbed
The Pakistan government has allowed industries and manufacturers in the country to restart production with effect from May 9, market sources in Pakistan told SSESSMENTS.COM. As the market players suspended the purchase of their raw materials for almost two months, buyers started to make replenishment this week. As such, one of the local distributors saw a vigorous market movement. A stronger demand recently was seen for PP Homo Raffia, as May shipment offers for PP from the United Arab Emirates producer were mostly lower between $10-20/ton compared to April shipment. Another trader mentioned that deals for PP Homo Raffia of Oman origin achieved at $820/ton, while PP Homo Injection from a Saudi producer sold at $815-830/ton. For Saudi PP Homo Raffia cargoes, deals concluded at $820-830/ton. All transactions were on LC at sight, CFR Karachi Port.
Speaking to SSESSMENTS.COM about the vigorous activities done by the market players after the restriction relaxed, the trader estimated that declining demand in the near future is quite implausible as the government already started their action to stimulate the local industry. On the other hand, Pakistan market progress is single-handedly lifted by domestic consumption. As the export market is still sluggish, converters are only purveying solely for the domestic demand. No supply issue was reported this week.
As the Coronavirus outbreak is already under control, reflected by the number of infections, which is not as high as the neighbouring countries, coupled with the government economic stimulation, the near-term outlook for PP market is brighter. Some traders also informed SSESSMENTS.COM that Pakistan market will be muted from May 23 until May 27 for the Eid Al-Fitr holiday.
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