- Import PP offers during June captured moving in the same trend
- Demand in the country was sluggish throughout June
- There is a possibility for PP demand to slow down further
According to the data collected by SSESSMENTS.COM’s team, June-July shipment offers from Saudi producers surfaced in the first week of June with an upward increment of $10/ton compared to May shipment with offers for import PP Homo grades captured available between $850-900/ton. By the following week, there were no fresh import offers reported in the country following the significant decreases in inquiries as well as transactions as most buyers already held sufficient inventory on hand. However, sources revealed that there were some deals that were concluded in the week ending June 5. Sources stated that a trader managed to sell import Saudi PP Homo Injection cargoes at $20/ton lower than the initial offer level. Meanwhile, a global trading house sold import Saudi PP Homo Raffia cargoes between $910-920/ton. Despite some deals concluded, most customers were showing resistance towards the higher prices and voiced out buy idea for Saudi PP Homo Raffia at $880/ton, or between $30-40/ton lower from the initial offer level. All on LC at sight, CFR Karachi Port.
By the week commencing June 15, a distributor revealed that the offers for import PP cargoes of United Arab Emirates origin captured higher between $40-50/ton from a month earlier. As informed to SSESSMENTS.COM, the allocation is rather limited and the cargoes have been sold out since the first week of June with the deals concluded at $850/ton for PP Homopolymers and between $890-900/ton for PP Block Copolymer. For PP Random Copolymer Injection of the same origin, deals were achieved at $980/ton. Sources added that the offers for South Korean PP Block Copolymer were available at $1,030/ton. However, buyers were uninterested as the offers deemed too high. In the fourth week of the month, the offers for PP Homopolymers of Southern Africa and Middle East origin recorded at $920-930/ton and $960/ton respectively. Further added, deals for near-to-prime grade PP Homo Raffia of Middle East origin concluded at $875/ton. All offers also on LC at sight, CFR Karachi Port.
Market sources reported to SSESSMENTS.COM that PP demand in Pakistan throughout June was sluggish. There were several factors affecting the demand, such as Eid Al-Fitr holiday as well as resistance towards higher offers amid slow finished products sales. Moreover, the government decided to reimpose lockdown called “smart lockdown” in the fourth week of June. The lockdown would seal 500 areas identified as “hotspots” or having a possible increase in ratio/speed in the spreading of coronavirus while different sectors of economic activity were still allowed to open. The movement was taken as the number of confirmed COVID-19 cases in the country continued to increase. Although the downstream activity was not affected, market sentiment was getting dull as players were very cautious regarding the market movement. Despite the slow demand, a distributor reported that on the week commencing June 15, the company managed to sold-out the allocation for United Arab Emirates cargoes.
Looking ahead, Pakistani market players stated to SSESSMENTS.COM that market direction is difficult to predict that it is better to continue monitoring market development. While considering the re-implementation of lockdown, the demand for PP resins in the country predicted to slow down in July.
Transactions for import PP between June 1 to June 5 on LC at sight, CFR Karachi Port
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | PP Homo Film | Price List | 900* |
| Middle East | PP Homo Film | Offer Received | 880-900 |
| Middle East | PP Homo Injection | Price List | 880* |
| Middle East | PP Homo Injection | Offer Received | 850-880 |
| Middle East | PP Homo Injection | Sold | 860** |
| Middle East | PP Homo Raffia | Price List | 880* |
| Middle East | PP Homo Raffia | Offer Given | 930-940 |
| Middle East | PP Homo Raffia | Offer Received | 850-880 |
| Middle East | PP Homo Raffia | Sold | 900-930 |
Description: *For purchases above 99 tons **Done deals for July shipment
Transactions for import PP between June 15 to June 19 on LC at sight, CFR Karachi Port
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| South Korea | PP Block Copolymer | Offer Received | 1,030 |
| United Arab Emirates | PP Block Copolymer | Sold | 890-900 |
| Saudi Arabia | PP Homo Film | Offer Received | 960*-980* |
| Saudi Arabia | PP Homo Film | Price List | 960*-980* |
| Saudi Arabia | PP Homo Injection | Price List | 940*-960* |
| Saudi Arabia | PP Homo Injection | Offer Received | 940*-960* |
| United Arab Emirates | PP Homo Injection | Sold | 850 |
| Saudi Arabia | PP Homo Raffia | Offer Received | 940* |
| Saudi Arabia | PP Homo Raffia | Price List | 940* |
| United Arab Emirates | PP Homo Raffia | Sold | 850 |
| Saudi Arabia | PP Random Copolymer Blow | Offer Received | 1,080* |
| Saudi Arabia | PP Random Copolymer Blow | Price List | 1,080* |
| United Arab Emirates | PP Random Copolymer Injection | Sold | 980 |
Description: *July shipment offers
Transactions for import PP between June 22 to June 26 on LC at sight, CFR Karachi Port
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | PP Homo Injection | Price List | 955 |
| Southern Africa | PP Homo Injection | Offer Received | 920-955 |
| Middle East | PP Homo Raffia | Offer Given | 960 |
| Middle East | PP Homo Raffia | Sold* | 875 |
| Middle East | PP Homo Raffia | Price List | 955 |
| Southern Africa | PP Homo Raffia | Offer Received | 920-930 |
| Southern Africa | PP Homo Raffia | Offer Given | 920 |
Description: All import offers for July shipments; *Near-to-prime quality
Transactions for import PP between June 29 to June 30 on LC at sight, CFR Karachi Port
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | PP Homo Film | Offer Received | 1,000 |
| Middle East | PP Homo Film | Price List | 970 |
| Middle East | PP Homo Injection | Price List | 950-970 |
| Middle East | PP Homo Raffia | Offer Received | 930-970 |
| Middle East | PP Homo Raffia | Price List | 950 |
| Middle East | PP Random Copolymer Injection | Price List | 1,080 |
Tags: Asia Pacific,English,ISC,Monthly,PP,Pakistan
Published on June 30, 2020 6:02 PM (GMT+8)
Last Updated on June 30, 2020 6:33 PM (GMT+8)
