quarterlyssessments-q1-2020-india-pp-prices

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

QuarterlySSESSMENTS: Q1 2020 India PP Prices

Author: SSESSMENTS

QuarterlySSESSMENTS: Q1 2020 India PP Prices

Author: SSESSMENTS

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