Import PP offers on LC at sight, CFR Chittagong Port
Bangladesh PP Market Sentiment Mixed On Current Price Trend, Demand Condition
- Emirati producer plans to announce August shipment offers within this week
- Downstream factories run at a reduced rate between 50-60% from normal capacity
- Near-term outlook remains gloomy
Bangladesh PP market sentiment is mixed this week as import prices keep rising amid sour downstream demand, sources reported to SSESSMENTS.COM. Import PP offers to Bangladesh were continuing their bullish run from a week earlier, riding on strong gains in feedstock prices. For Middle Eastern origin cargoes, some buyers received offers for Saudi PP Homo Raffia via a global trading house at $970/ton on LC at sight, CFR Chittagong Port. Meanwhile, an Emirati producer has yet to announce August shipment offers to the Bangladesh market. Some sources mentioned that the producer will announce the offers within this week, with an expectation of $20/ton increase as compared to July shipment offers.
Demand-wise, some sources mentioned that Bangladesh PP market is improving week by week. After several weeks of buying on an as-needed basis, buyers are willing to accept higher offer levels in the market and eager to replenish materials. Besides, most banks in Bangladesh are now willing to issue Letter of Credit (LC) since businesses are steadily recovering after months-long closure. Previously, the trading of polypropylene into Bangladesh was severely affected by difficulties in opening LC as most banks were operating at a reduced rate with minimum manpower. In contrast, other sources claimed that market sentiment is still leaning towards a bearish undertone as many areas in Bangladesh have been battling floods since heavy rain spells continue to inundate the area. Besides, Bangladesh’s export markets have not yet strengthened, especially for end-products. As a result, most downstream factories are keeping their production rates at a lower level between 50-60% from normal capacity. On the supply side, no significant issues reported to SSESSMENTS.COM until the time of publication.
For the outlook, market participants in Bangladesh voiced out to SSESSMENTS.COM that import PP offers to Bangladesh will move higher in line with the global market trend. Demand-wise, trading and manufacturing activities in Bangladesh are predicted to wind down ahead of Eid Al-Adha holiday, which falls on 30 July and lasts until 31 July.
Tags: Asia Pacific,Bangladesh,English,ISC,PP,Weekly
Published on July 22, 2020 2:14 PM (GMT+8)Last Updated on July 22, 2020 8:25 PM (GMT+8)
