- Local producers adjusted PP prices in the first and third week of September
- Import offers from Vietnam increased by $50/ton over a week
- Tightness in supply eased in the last week, the operating rate of local producers reached 90%
On September 1, the leading Indian petrochemical producer increased offers for PP Homo Raffia by INR1,000/ton ($14/ton). Considering supply condition at that time, market players opined to SSESSMENTS.COM that the increases were reasonable and buyers could accept the levels. In the second week of September, PP offers were stable on a weekly comparison. In the following week, to be precise on September 19, several local producers announced another increase of INR1,000/ton ($14/ton) on PP offers. A price protection scheme implemented by some producers before the announcement was officially withdrawn. In the last week of the month, market prices were recorded at stable levels compared to a week earlier.
From the import market, offers for PP Homo Raffia cargoes of Middle East origin were unchanged in the first week. In the second week, offers for the cargoes dropped by $20/ton compared to the previous week but buyers still asked for lower offers. Bids submitted by buyers were between $30-40/ton lower than the initial level. In the second half of the month, import offers to the India market were on an uptrend. Amidst the scarcity of cargoes from the Middle East after attacks on Saudi oil facilities in the third week, offers from Vietnam increased by $50/ton over a week. On September 25, import offers from Saudi were surfaced at $60/ton higher than the levels recorded in a fortnight earlier.
Demand for PP in India was initially good at the beginning of the month due to limited supply in the market stemming from maintenance shutdowns at several local producers’ plants. However, demand gradually sagged because of some factors, such as the depreciation of Indian Rupee against the U.S Dollar, data showing slower India’s GDP growth and decline in automotive sales, the rainy season and the Indian government’s plan to implement a regulation banning single plastic uses. SSESSMENTS.COM was later informed that the government deferred the implementation of the regulation and decided to focus more on the campaign to increase awareness in reducing plastic uses and improving waste management after considering the impact on the industry.
On the supply side, supply from the Indian PP producers was tight during September. The tightness started to ease in the last week of the month as some producers brought back PP plants on-stream. On September 30, one of the producers informed SSESSMENTS.COM that the operating rate at two local producers has reached 90% of the normal rate.
Entering October, market players expected downward corrections on PP prices as supply has been normal while demand is weak. The market also will only active around 15 to 18 days in October. Producers and traders need to employ effective strategies to boost PP sales, the players told SSESSMENTS.COM.
Tags: English,EN PP INDIA MSS,India,Indian Subcontinent (ISC),MonthlySSESSMENTS,Polypropylene (PP) India PP prices,PP pricesOctober 18, 2019 4:09 PM