- During October, local PP offers reported stable
- Import offers from the Middle East decreased by $20/ton in the first week
- Additional discount scheme for October PP sales applied by an Indian producer
Throughout October, local offers for PP Homo Raffia in India recorded at a stable level on a weekly comparison. The offers during October stood between INR85,000-90,000/ton ($1,192-1,262/ton) on cash, EXW basis and excluding 18% GST. On the week commencing October 21, some buyers expressed buy idea for local cargoes between INR75,000-76,000/ton ($1,060-1,074/ton) on the same payment and delivery terms. Meanwhile, no transaction reported to SSESSMENTS.COM from October 28 to October 31 due to Diwali holiday.
From the import market, offers for PP Homo Raffia cargoes of Middle East origin in the first week were trimmed by $20/ton at the low-end of the price range compared to a week earlier. On the week ending October 11, buyers’ bids at $1,050/ton-level got rejected as the level was deemed unworkable. Moved to the week commencing October 14, some traders stated to SSESSMENTS.COM that import cargoes were rather hard to compete due to competitive local prices. Therefore, some buyers prefer to buy off-grades materials as the prices were more affordable. Deals for off-grade PP Homo Raffia cargoes of Middle East origin were concluded at $1,000/ton on LC at sight, CIF India main port basis. For near-to-prime grade, offers from Saudi stand between $1,040-1,045/ton on LC at sight, CIF India Main Port basis.
To the export market, a source from the leading Indian petrochemical producer told SSESSMENTS.COM on the week commencing October 14 that the company managed to sell PP Homo Raffia cargoes to China and South Asia market, but the volume was small. Deals were concluded at $1,020/ton and $1,100/ton, respectively, all on LC at sight, CIF main port basis.
In general, SSESSMENTS.COM noted that demand for PP in India during October was weak. Citing that most buyers were expecting lower prices once supply from local producers had stabilized after maintenance shutdowns. Besides, several public holidays such as Dussehra and Pooja had dampened the buying sentiment. Due to the weak demand, an Indian producer decided to give an additional discount scheme for October PP sales, and the discounts will be paid on a post-sale basis. While other local producers decided to implement a price protection scheme with effect from October 14. In terms of supply, on October 9, market sources informed that the inventory level of Mangalore Refinery and Petrochemicals Limited (MRPL) stood between 8,500-9,000 tons while Reliance had around 70,000 tons in the warehouse.
For the outlook, the majority of market players in India come to the conclusion that PP prices and demand would continue to stay on a downward trajectory in the days to come considering the current demand condition, as stated to SSESSMENTS.COM.
Tags: Asia Pacific,English,EN PP INDIA MSS,India,Indian Subcontinent (ISC),MonthlySSESSMENTS,Polypropylene (PP) India PP prices,PP pricesNovember 27, 2019 3:29 PM