Local PE Prices In India Maintain Status Quo Following Recent Customs Duty Announcement, Sentiment Weakened On Coronavirus Issue
- Local PE offers captured stable
- Demand is slowing down due to the Coronavirus outbreak
- PE prices predicted to decrease by INR3,000/ton ($42/ton)
SSESSMENTS.COM was informed that the buying sentiment for PE in India weakened due to the Coronavirus outbreak. In the local market, the offers for local PE cargoes across all grades reported stable on a weekly comparison. Market sources reported that as there was no increase in customs duty on polymers price announced by the government on February 1, all local producers decided to roll over prices with effect from February 1, 2020. From the import market, the offers remain scarce. To date, there is no fresh import offers to the country.
Market sources reported to SSESSMENTS.COM that the buying sentiment in the country is affected by the Coronavirus outbreak. At the moment, buyers prefer to wait on the sidelines position as the Coronavirus issue is predicted to drag down prices in the days to come. However, sources added that some buyers are still making procurement but only on a hand-to-mouth basis. On the supply side, tightness is still reported especially for HDPE grades.
In the near term, PE prices are predicted to move downward up to INR3,000/ton ($42/ton) if the Coronavirus issues continue to affect buying sentiment. However, others opined to SSESSMENTS.COM that market direction will be more clear once trading activities in China have fully resumed.
Tags: English,EN PE INDIA WSS,India,Indian Subcontinent (ISC),Polyethylene (PE),WeeklySSESSMENTS India PE prices,PE PricesFebruary 6, 2020 2:32 PM