As SSESSMENTS.COM noted, the development in the India market has triggered a local PP producer to adjust prices significantly. With effect from June 1, the producer increased the offers for all grades of PP by INR3,200/ton ($101/ton). The lower supply for PP, in general, claimed as the major ground of the price increment. On Monday, June 1, PP inventory is assessed down to 160,000 tons. Demand-wise, current demand is quite steady except for PP Homo Injection grade as demand for household and automotive products have been battered by the Coronavirus outbreak. The overall PP resins consumption is gradually improving, estimated around 50% compared to before the pandemic.
In the import market, market talks have it that Saudi PP Homo Raffia cargoes are available at $900/ton on LC at sight, CIF India main port basis. The producer opined to SSESSMENTS.COM that the import offers would not be workable as the import parity for the current domestic offers is still much lower.
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