An Indian petrochemical producer told SSESSMENTS.COM that the company rejigs PP allocation to the domestic and export markets after the government loosened rules and lifted lockdown in some areas. Previously, due to weak demand in the domestic market and logistic issues during the lockdown, the producer moved 75% of total PP allocation to the export market, particularly to China. “We sold a lot of cargoes to China for May and June shipment,” the producer stated.
At the moment, the producer’s allocation to the domestic and export markets is gradually returning to normal; 60% of the total allocation is allocated to the domestic market while the rest is to the export market. Pertaining to the uptrend in PP prices, the producer commented to SSESSMENTS.COM that the trend is supported by firm propylene prices and low inventory pressure on the producers’ end as most sold many cargoes to China earlier. Meanwhile, demand is still weak and unable to support high PP prices.
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