- Local PP offers captured stable to softer, import offers were mostly on a downtrend
- Healthy demand observed in early January but gradually softening for the rest of the quarter
- Players predict limited to zero transactions during a 21-day lockdown period
According to data gathered by SSESSMENTS.COM’s team, local offers for PP across all grades in the India market captured stable to softer during Q1 2020. In January, local offers for PP Homo Raffia maintained stable week over week. While in February, the leading Indian petrochemical producer reduced offers for local PP Homopolymers grades by INR1,500/ton ($19/ton), while the offers for PP Copolymer grades were lowered by INR1,000/ton ($13/ton). Likewise, another local producer also decreased the offers for PP across all grades by INR1,500/ton ($19/ton). Along with the price reductions, both producers announced price protection for PP with effect from February 20, 2020. Following the local producers’ movement, traders adjusted down their offers for PP across all grades by INR1,000/ton ($13/ton). Moving to March, a local producer lowered the offers for PP across all grades by INR1,500/ton ($19/ton) and withdrew the price protection scheme. Following suit, traders also lowered their offers by the same amount. All on a weekly comparison.
In the import market, SSESSMENTS.COM noted that at the beginning of Q1 2020, offers for Saudi cargoes dipped by $10/ton on a fortnight comparison, with deals concluded at $20/ton lower than the initial offer level. Meanwhile, February shipment offers from other Middle Eastern suppliers for PP Homopolymer grades via a global trading house captured between $10-15/ton higher on a monthly comparison. In February, deals for Middle Eastern PP Homo Raffia achieved at $10-20/ton higher compared to the deal levels for January shipment. At the same time, bids for South African PP Homo Raffia cargoes were captured at $20-40/ton lower from initial offer levels despite the price cut made by the supplier as much as $50/ton from the previous week. Moreover, March shipment offers from an Emirati producer slipped by $20/ton from February shipment offers. Stride to March, import offers became less appealing as local offers were competitive. Some players stated that in order to lure buyers, import offers should be around $840-850/ton on LC at sight, CIF India Main Port basis, particularly for PP Homo Raffia cargoes.
By and large, demand for PP resins in India was gradually softening. Healthy demand was briefly seen in early January. However, the demand began to shrink in late January due to the global economic slowdown, slump in crude oil prices, liquidity issues and the Coronavirus outbreak in China. In the following month, the concern over Coronavirus was growing and buyers preferred to wait on the sidelines for further price reduction. In March, buying sentiment eroded further due to the local currency depreciation. Besides, since the Coronavirus spreads began to severe, the Indian government eventually imposed a 21-day lockdown from March 24. Due to this, some Indian ports have declared force majeure. Similarly, some producers also declared force majeure on supply. One of them is India’s Haldia Petrochemicals (HPL), which has shut the company's cracker complex amid the lockdown. Additionally, Mangalore Refinery and Petrochemicals Ltd (MRPL) also has shut its 440,000 tons/year PP plant due to nationwide lockdown since March 26. Speaking of supply, SSESSMENTS.COM was told that PP cargoes in the local market remained sufficient during January.
For the outlook, Indian players opined to SSESSMENTS.COM that the overall market would remain sluggish even after the lockdown ends. In terms of prices, players will see limited to zero transactions during the lockdown.
Range of local/localized PP transactions in January on cash, EXW/FD basis (excluding 18% GST in all terms)
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Delivery Term | Delivery Location |
|---|
| India | PP Homo Film | Offer Given | INR | 79,000-80,000 | 1,032-1,046 | EXW | Mumbai |
| India | PP Homo Film | Offer Given | USD | 980 | - | EXW | Mumbai |
| India | PP Homo Injection | Offer Given | INR | 79,000 | 1,032 | EXW | Kolkata |
| India | PP Homo Injection | Offer Given | INR | 77,000-78,000 | 1,006-1,019 | EXW | Mumbai |
| Middle East | PP Homo Injection | Offer Given | INR | 77,000 | 1,006 | EXW | Mumbai |
| India | PP Homo Injection | Offer Received | USD | 960-980 | - | FD | Mumbai |
| India | PP Homo Raffia | Price List | INR | 83,100 | 1,086 | EXW | Kanpur |
| India | PP Homo Raffia | Offer Given | INR | 83,100 | 1,086 | EXW | Kanpur |
| India | PP Homo Raffia | Offer Given | INR | 80,000 | 1,046 | EXW | Kolkata |
| India | PP Homo Raffia | Offer Received | INR | 77,000-79,000 | 1,006-1,032 | EXW | Mumbai |
| India | PP Homo Raffia | Offer Given | INR | 77,000-78,500 | 1,006-1,026 | EXW | Mumbai |
| Middle East | PP Homo Raffia | Offer Given | INR | 78,000-78,500 | 1,019-1,026 | EXW | Mumbai |
| India | PP Homo Raffia | Offer Given | USD | 970 | - | EXW | Mumbai |
| India | PP Random Copolymer Injection | Price List | INR | 85,700 | 1,120 | EXW | Kanpur |
Range of import PP transactions in January, CFR/CIF India main port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term | Delivery Term |
|---|
| Middle East | PP Homo Film | Offer Given | 1,040 | LC 90 days | CIF |
| Middle East | PP Homo Film | Price List | 1,030-1,060 | LC at sight | CIF |
| Middle East | PP Homo Injection | Offer Given | 1,020 | LC 90 days | CIF |
| Middle East | PP Homo Injection | Offer Received | 1,050 | LC 90 days | CFR |
| Middle East | PP Homo Injection | Price List | 1,010-1,040 | LC at sight | CIF |
| Middle East | PP Homo Raffia | Bid Received | 970-980 | LC 90 days | CIF |
| Middle East | PP Homo Raffia | Offer Given | 1,020 | LC 90 days | CIF |
| Middle East | PP Homo Raffia | Offer Given | 1,010-1,020 | LC at sight | CIF |
| Middle East | PP Homo Raffia | Offer Received | 1,050 | LC 90 days | CFR |
| Middle East | PP Homo Raffia | Offer Received | 950-1,000 | LC at sight | CIF |
| Middle East | PP Homo Raffia | Price List | 1,000-1,030 | LC at sight | CIF |
| Middle East | PP Homo Raffia | Purchased | 930 | LC at sight | CIF |
| Middle East | PP Homo Raffia | Sold | 1,000-1,020 | LC at sight | CIF |
| Middle East | PP Random Copolymer Injection | Price List | 1,150 | LC at sight | CIF |
Range of local/localized PP transactions in February on cash, EXW/FD basis (excluding 18% GST in all terms)
| Origin | Product | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Term | Delivery Location |
|---|
| India | PP Homo Film | Offer Given | 80,000 | 1,046 | EXW | Kolkata |
| India | PP Homo Film | Offer Received | 79,000 | 1,032 | EXW | Kolkata |
| India | PP Homo Injection | Offer Given | 78,000-79,000 | 1,019-1,032 | EXW | Kolkata |
| India | PP Homo Injection | Offer Received | 77,000 | 1,006 | EXW | Kolkata |
| India | PP Homo Injection | Offer Given | 74,000 | 967 | FD | Mumbai |
| Saudi | PP Homo Injection | Offer Given | 77,000 | 1,006 | EXW | Mumbai |
| India | PP Homo Raffia | Offer Given | 78,000-80,000 | 1,019-1,046 | EXW | Delhi |
| India | PP Homo Raffia | Price List | 82,100-83,100 | 1,073-1,086 | EXW | Kanpur |
| India | PP Homo Raffia | Offer Given | 80,000-83,100 | 1,046-1,086 | EXW | Kanpur |
| India | PP Homo Raffia | Offer Given | 78,000-80,000 | 1,019-1,046 | EXW | Kolkata |
| India | PP Homo Raffia | Offer Received | 77,000 | 1,006 | EXW | Kolkata |
| India | PP Homo Raffia | Offer Given | 74,000 | 967 | FD | Mumbai |
| India | PP Homo Raffia | Offer Given | 73,000-78,000 | 954-1,019 | EXW | Mumbai |
| Saudi | PP Homo Raffia | Offer Given | 73,000-78,000 | 954-1,019 | EXW | Mumbai |
| India | PP Random Copolymer Injection | Price List | 90,500 | 1,183 | EXW | Kanpur |
Range of import PP transactions in February on LC at sight, CIF India main port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | PP Homo Film | Offer Given | 960 |
| Middle East | PP Homo Injection | Offer Given | 940 |
| Middle East | PP Homo Injection | Purchased | 980-990 |
| Southern Africa | PP Homo Raffia | Bid Given | 900 |
| Middle East | PP Homo Raffia | Buy Idea | 850-860 |
| Southern Africa | PP Homo Raffia | Buy Idea | 920-940 |
| Middle East | PP Homo Raffia | Offer Given | 940 |
| China | PP Homo Raffia | Offer Received | 945-950 |
| Middle East | PP Homo Raffia | Offer Received | 920-980 |
| Southern Africa | PP Homo Raffia | Offer Received | 920-970 |
| Middle East | PP Homo Raffia | Purchased | 970-980 |
| Middle East | PP Homo Raffia | Sell Idea | 980 |
| Southern Africa | PP Homo Raffia | Sold | 900 |
Range of local/localized PP transactions in March on cash, EXW/FD basis (excluding 18% GST in all terms)
| Origin | Product | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| India | PP Homo Film | Price List | 80,500 | 1,052 | Kanpur |
| India | PP Homo Film | Offer Given | 77,500 | 1,013 | Kolkata |
| India | PP Homo Film | Offer Given | 73,000-74,000 | 954-967 | Mumbai |
| India | PP Homo Injection | Offer Given | 74,000 | 967 | Gujarat |
| India | PP Homo Injection | Offer Given | 75,000-79,000 | 980-1,032 | Kolkata |
| India | PP Homo Injection | Offer Given | 71,500-77,000 | 934-1,006 | Mumbai |
| India | PP Homo Raffia | Offer Given | 73,000-75,000 | 954-980 | Bhiwandi |
| India | PP Homo Raffia | Offer Given | 80,000 | 1,045 | Delhi |
| India | PP Homo Raffia | Offer Given | 72,000-74,000 | 941-967 | Gujarat |
| India | PP Homo Raffia | Price List | 84,400 | 1,103 | Kanpur |
| India | PP Homo Raffia | Offer Given | 84,400 | 1,103 | Kanpur |
| India | PP Homo Raffia | Offer Given | 75,000-80,000 | 980-1,045 | Kolkata |
| India | PP Homo Raffia | Offer Given | 71,500-73,000 | 934-954 | Mumbai |
| Saudi | PP Homo Raffia | Offer Given | 72,000-78,000 | 941-1,019 | Mumbai |
Range of import PP transactions in March on LC at sight, CIF India main port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Middle East | PP Homo Film | Offer Given | 1,015 | LC 60 days |
| Middle East | PP Homo Film | Sold | 1,015 | LC 60 days |
| Middle East | PP Homo Raffia | Offer Given | 920 | LC at sight |
| Middle East | PP Homo Raffia | Offer Received | 910-1,000 | LC at sight |
| Southeast Asia | PP Homo Raffia | Offer Received | 940 | LC at sight |
Tags: English,ISC,India,PP,Quarterly
Published on April 6, 2020 10:17 PM (GMT+8)
Last Updated on April 6, 2020 10:17 PM (GMT+8)
