Will Coronavirus Outbreak Drag Down Local India PP Prices In The Days To Come?
- Local PP offers in India reported stable
- Buying sentiment weakened due to several reasons
- Local PP prices are rather hard to increase in the days to come
Due to the Coronavirus outbreak, Indian market players questioned whether the issue would drag down local PP prices or not in the days to come. For the week commencing February 3, local PP Homo Raffia offers from traders and producers reported stable on a weekly comparison. The latest offers from traders are available at INR78,000/ton ($1,095/ton) on cash, EXW India basis and excluding 18% GST. In the import market, a global trading house managed to conclude deals for PP Homo Injection of Middle East origin for February shipment between $980-990/ton. Meanwhile, deals for Middle Eastern PP Homo Raffia cargoes closed between $10-20/ton higher compared to done deal for January shipment. For medium quantity, deals for Middle Eastern PP Homo Raffia cargoes were concluded at $970-980/ton. SSESSMENTS.COM noted that all import offers are on LC at sight, CIF India Main Port basis.
Based on the information gathered by SSESSMENTS.COM, demand for PP resins in India this week remains subtle. Market sources quoted three prominent reasons as the main factors that hampered buying sentiment. First, the drop in crude oil prices. Second, a wait-and-see stance adopted by Indian buyers on the back of the Coronavirus outbreak. And third, the price downtrend in the international market caused by the outbreak of Coronavirus, which led to the expectation of lower prices in the domestic market as well. On the supply side, no significant issues reported at the moment.
Looking ahead, Indian market players contacted by SSESSMENTS.COM opined that local PP prices are expected to remain stable or even decrease in the days to come as there is no supporting factor that could lift the prices as well as buying sentiment.
Tags: English,EN PP INDIA WSS,India,Indian Subcontinent (ISC),Polypropylene (PP),WeeklySSESSMENTS India PP prices,PP pricesFebruary 5, 2020 11:50 AM