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MonthlySSESSMENTS: May Bangladesh PP Prices

Author: SSESSMENTS

  • Buyers could not complete import transactions due to the Letter of Credit (LC) issue
  • No improvement was seen in the Bangladesh PP market
  • Bangladeshi market players expect the PP market to improve as lockdown has been lifted

At the beginning of May, the Coronavirus outbreak was heavily affecting the import PP market in Bangladesh. Buyers could not complete any transactions due to the Letter of Credit (LC) issue as most banks in Bangladesh were not fully operating amid the lockdown. In terms of offers, on the week commencing May 4, Indian and Omani producers trimmed import PP Homo Raffia offers by $20/ton on the biweekly comparison. Likewise, import offers for Saudi PP Homo Raffia decreased by $50-60/ton compared to the same period, SSESSMENTS.COM noted. 

In contrast, import PP offers from foreign producers to Bangladesh moved higher in the second week of May. On a weekly comparison, SSESSMENTS.COM’s pricing database showed that offers for PP Homo Raffia of India origin increased by $10/ton, while offers for Saudi PP Homo Raffia via a global trading house were available at $30-40/ton higher. However, these offers gained a cold response from Bangladeshi buyers, as such, no deals were concluded. While on the week commencing May 18, market players were unbothered by the PP market movements due to Eid Al-Fitr holiday mood, which started from May 20, 2020. However, a global trading house managed to achieve deals for Middle Eastern PP Homo Raffia at $820/ton on LC at sight, CFR Chittagong Port. In the final week of May, PP market in Bangladesh was quiet as market players were still on Eid Al-Fitr Holiday.

Despite the rally in crude oil prices, no improvement was seen in the PP Bangladesh PP market during May. Demand continued to drop as the government announced an extension in ongoing countrywide lockdown until May 30. The PP market remained slow during the month in line with the slow end-products demand. Moreover, as mentioned before, as most banks in Bangladesh were not fully operating, not all buyers could open a Letter of Credit (LC). In the final week of the month, most buyers preferred to halt procurements to avoid high inventory near Eid Al-Fitr Holiday. On the supply front, no significant supply issues reported to SSESSMENTS.COM.

As the Bangladeshi government has lifted the lockdown and allowed businesses to reopen under strict guidelines as of May 31, the PP market in June is expected to gradually improve along with an expectation of better end-product demand onwards. Meanwhile, import PP prices to Bangladesh predicted to follow the international market trend, as cited by SSESSMENTS.COM.

Click below to view related stories and content on the Bangladesh PP market:

NewsSSESSMENTS: Adjustment On Import PP Offers To Bangladesh Received Cold Response, In-Line With Approaching Eid Al-Fitr Holiday

WeeklySSESSMENTS: Bangladesh PP Prices W/C May 4

WeeklySSESSMENTS: Bangladesh PP Prices Week Starting May 11

WeeklySSESSMENTS: Bangladesh PP Prices Week Starting May 18

Transactions for import PP between May 1 to May 8 on LC at sight, CFR Chittagong Port

OriginProductTransaction TypeOffers (USD/ton)
Indian SubcontinentPP Homo RaffiaOffer Received820
Middle EastPP Homo RaffiaOffer Given820
Middle EastPP Homo RaffiaOffer Received820-850
Middle EastPP Homo RaffiaOffer Received935*
Description: *Offers via a Dubai-based trader

Transactions for import PP between May 11 to May 15 on LC at sight, CFR Chittagong Port

OriginProductTransaction TypeOffers (USD/ton)
Indian SubcontinentPP Homo RaffiaOffer Given825-850
Middle EastPP Homo RaffiaOffer Given880
North AmericaPP Homo RaffiaBid Received850-880

Transactions for import PP between May 18 to May 22 on LC at sight, CFR Chittagong Port

OriginProductTransaction TypeOffers (USD/ton)
Middle EastPP Homo RaffiaSold820

Tags: Asia Pacific,Bangladesh,English,ISC,Monthly,PP

Published on June 2, 2020 6:20 PM (GMT+8)
Last Updated on June 2, 2020 6:20 PM (GMT+8)