- Limited supply gave a chance for certain PE grade to increase before the downtrend
- The nationwide lockdown imposed by the government on March 24 instantly muted the market
- Indian PE market players stated bearish outlook for April
In India, demand for a certain grade of PE was healthy at the beginning of the month supported by limited supply. However, the situation changes drastically at the end of the month. On the week commencing March 2, limited supply for LDPE Film in the local market supported the offers to increase by INR1,000/ton ($13.5/ton) as compared to a week earlier. However, the crash in crude oil prices pushed some Indian traders to make a downward price correction within the week commencing March 9. Offers for PE across all grades were down between INR1,000-2,000/ton ($13-27/ton) from a week earlier in order to boost sales. On the week commencing March 23, zero transaction was reported from Indian market players to SSESSMENTS.COM as the government imposed the nationwide lockdown starting from Tuesday, March 24 and it will be enforced for 21 days.
In the import market, a notable adjustment was captured on the week commencing March 9. Offers for HDPE Film of Middle Eastern origin decreased by $50/ton as compared to a week earlier. The significant price reduction failed to lure buyers to procure some materials. SSESSMENTS.COM was told that the depreciation of Indian Rupee against the greenback starting from the first week of the month hampered buying appetite for import materials as local cargoes deemed more attractive.
In general, demand for PE in India during March was sluggish except for HDPE Pipe. Demand for HDPE Pipe reported healthy in the first week of the month amid the seasonal peak season. While for other grades, the depreciation of Indian Rupee towards the US Dollar, buyers’ expectation on lower prices, and the growing concern over Coronavirus outbreak has hampered the demand. At the end of the month, as the government imposed the nationwide lockdown starting from March 24, and will be enforced for 21 days, the Indian PE market became muted in an instant. The delivery of material and the production activity is disrupted as most companies shut their business due to the lack of manpower. Besides, force majeure has also been declared by several ports.
On the supply front, tight availability of HDPE Film and LDPE grades reported on the week commencing March 2. While on the week commencing March 15, limited supply was reported for LDPE Film and LLDPE Film C4. On the production front, at the end of the month, India’s Haldia Petrochemical Limited (HPL) declared force majeure on supply and will close the company’s petrochemical complex in the near term amid the Coronavirus outbreak. According to SSSSMENTS.COM’s supply and demand database, Haldia’s HDPE and LLDPE plants have a production capacity of 345,000 tons/year and 365,000 tons/year, respectively.
Looking ahead, India market participants believe that the quiet PE market will last until April as the nationwide lockdown will be enforced for 21 days. Amid the lockdown, businesses are on a standstill as stated to SSSSMENTS.COM.
*Offers on LC at sight EXW basis
Transactions for local/localized PE between March 2 to March 6 on cash, EXW basis, all excluding 18% GST
| Origin | Product | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| India | HDPE Blow Moulding | Offer Given | 73,000 | 963 | Kolkata |
| India | HDPE Blow Moulding | Offer Given | 73,500-76,800 | 970-1,014 | Kanpur |
| India | HDPE Film | Offer Received | 75,000 | 990 | Mumbai |
| India | HDPE Film | Price List* | 71,400-75,000 | 942-990 | Kanpur |
| Saudi | HDPE Film | Offer Given | 71,000 | 937 | Mumbai |
| USA | HDPE Film | Offer Given | 71,500-72,000 | 944-950 | Mumbai |
| India | HDPE Injection | Offer Given | 72,000 | 950 | Kolkata |
| India | HDPE Pipe (PE 100) | Price List* | 82,400-82,600 | 1,088-1,090 | Kanpur |
| India | HDPE Yarn | Price List* | 72,400-77,400 | 956-1,022 | Kanpur |
| India | LDPE Film | Price List* | 70,100-75,100 | 925-991 | Kanpur |
| Qatar | LDPE Film | Offer Given | 74,000-75,000 | 977-990 | Mumbai |
| Saudi | LDPE Film | Offer Given | 74,000-75,000 | 977-990 | Mumbai |
| India | LLDPE Film C4 | Offer Received | 64,000-65,000 | 845-858 | Mumbai |
| India | LLDPE Film C4 | Offer Given | 74,100 | 978 | Kanpur |
| India | LLDPE Film C4 | Price List* | 74,100 | 978 | Kanpur |
Transactions for import PE between March 2 to March 6 on LC at sight, CIF India Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | HDPE Blow Moulding | Offer Received | 810-880 |
| Middle East | HDPE Film | Offer Received | 840 |
| North America | HDPE Film | Offer Received | 820-880 |
| North America | HDPE Film | Sell Idea | 800-810 |
| Middle East | LDPE Film | Offer Received | 900-940 |
| Middle East | LDPE Film | Bid Given | 900-920 |
| Middle East | LLDPE Film C4 | Offer Received | 900 |
Transactions for local/localized PE between March 9 to March 13 on cash, EXW basis, all excluding 18% GST
| Origin | Product | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| India | HDPE Blow Moulding | Offer Given | 69,500 | 917 | Mumbai |
| India | HDPE Film | Offer Given | 71,000-72,000 | 937-950 | Mumbai |
| India | HDPE Film | Offer Received | 75,000 | 990 | Mumbai |
| Saudi Arabia | HDPE Film | Offer Given | 71,000 | 937 | Mumbai |
| Saudi Arabia | HDPE Film | Sell Idea | 75,000-77,000 | 990-1,016 | Bhiwandi |
| USA | HDPE Film | Offer Given | 71,500-72,000 | 944-950 | Mumbai |
| India | HDPE Pipe (PE 100) | Offer Given | 74,000 | 977 | Mumbai |
| India | LDPE Film | Offer Given | 73,000-74,000 | 963-977 | Mumbai |
| Qatar | LDPE Film | Offer Given | 74,000-75,000 | 977-990 | Mumbai |
| Saudi Arabia | LDPE Film | Offer Given | 74,000-75,000 | 977-990 | Mumbai |
| Saudi Arabia | LDPE Film | Sell Idea | 76,000 | 1,003 | Bhiwandi |
| Saudi Arabia | LLDPE Film C4 | Sell Idea | 71,000 | 937 | Bhiwandi |
| India | LLDPE Film C4 | Offer Received | 64,000-65,000 | 845-858 | Mumbai |
| India | LLDPE Film C4 | Sold | 64,500 | 851 | Mumbai |
Transactions for import PE between March 9 to March 13 on LC at sight, CIF India Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | HDPE Film | Offer Received | 850 |
Transactions for local PE between March 16 to March 20 on cash, EXW basis, all excluding 18% GST
| Origin | Product | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| India | HDPE Blow Moulding | Offer Given | 72,000 | 950 | Kolkata |
| India | HDPE Blow Moulding | Offer Given | 67,000-69,500 | 884-917 | Mumbai |
| India | HDPE Film | Offer Given | 69,000-72,000 | 911-950 | Mumbai |
| India | HDPE Pipe (100) | Offer Given | 72,000-74,000 | 950-977 | Mumbai |
| India | LDPE Film | Offer Given | 73,000-74,000 | 963-977 | Mumbai |
| India | LLDPE Film C4 | Offer Given | 62,500 | 825 | Mumbai |
| India | LLDPE Film C4 | Offer Given | 70,000 | 924 | Kolkata |
Transactions for import PE between March 16 to March 20 on LC at sight, CIF India Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Qatar | HDPE Film | Offer Given | 780-800 |
| USA | HDPE Film | Offer Received | 820-830* |
| USA | HDPE Film | Offer Received | 810 |
| USA | HDPE Film | Sold | 820-830* |
| Qatar | LDPE Film | Offer Given | 860 |
| USA | LDPE Film | Offer Given | 940-960** |
Transactions for local PE between March 23 to March 27 on cash, EXW basis, all excluding 18% GST
| Origin | Product | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| India | HDPE Blow Moulding | Offer Given | 72,000 | 950 | Kolkata |
| India | HDPE Blow Moulding | Offer Given | 67,000-69,500 | 884-917 | Mumbai |
| India | HDPE Film | Offer Given | 69,000-72,000 | 911-950 | Mumbai |
| India | HDPE Pipe (PE 100) | Offer Given | 72,000-74,000 | 950-977 | Mumbai |
| India | LLDPE Film C4 | Offer Given | 62,500 | 825 | Mumbai |
| India | LLDPE Film C4 | Offer Given | 70,000 | 924 | Kolkata |
Tags: English,ISC,India,Monthly,PE
Published on April 2, 2020 5:02 PM (GMT+8)
Last Updated on April 2, 2020 5:02 PM (GMT+8)
