A local trader in Myanmar revealed to SSESSMENTS.COM that skyrocketing import PE and PP prices have discouraged buyers from making fresh purchases. After witnessing improvements in sales due to pent-up demand after lockdown lift-off, downstream consumption in Myanmar has shrunk again as more buyers show reluctance towards higher offers. Over the week, overseas suppliers maintained their high price quotes to the Myanmar market, but no strong demand fundamentals to support any form of price hikes. The market has largely been weighed by persistent bearish sentiment as the rainy season continues to present challenges for end-products sales. The trader further added that most downstream factories are keeping their production rates at a lower level between 60-70% from normal capacity.
In terms of offers, the trader reported to SSESSMENTS.COM on receiving import PE and PP offers from various origins this week. For PP, a Saudi producer has announced August shipment offers to the Myanmar market this week. As compared to July shipment, the producer initiated a price increase of between $20-30/ton for PP Homo Raffia cargoes, available in the market between $990-1,000/ton on LC at sight, CIF Yangon Port. In response, buyers were reluctant to take the cargoes as most regarded the offer level as high and unworkable. “So far, customers are not responding to these offers as it is deemed unworkable. They prefer to wait for more offers from other suppliers,” the trader said.
As for PE, the trader noted that most import offers were unchanged from last week’s levels. From Southeast Asia origin, import offers for HDPE Blow Moulding and HDPE Yarn cargoes from a Thai PE producer emerged in the market between $940-950/ton respectively, a rollover from a week earlier. Similarly, a Middle Eastern supplier opted to roll over offers for HDPE Blow Moulding from last week’s level, available at $910-920/ton. From North America origin, current import offers for LLDPE Film are still hovering below $900/ton-level, captured between $840-860/ton. The trader added that supply for HDPE Film in Myanmar is relatively tight at the moment as some foreign suppliers do not have spot allocation to the country. All offers are on LC at sight, CIF Yangon Port, SSESSMENTS.COM was informed.
Import PE, PP offers on LC at sight, CIF Yangon Port
Tags: Americas,Asia Pacific,English,Middle East,Myanmar,News,PE,PP,SEA,Saudi Arabia,Thailand,US
Published on July 22, 2020 7:32 PM (GMT+8)
