Demand for polymers in India remains weak as the country’s nationwide lockdown to curb the coronavirus spread is extended from April 14 to May 3. Market sources told SSESSMENTS.COM that approximately 85% of plastic conversion plants are shut during the lockdown.
Demand for polypropylene (PP) was hit as India’s auto manufacturing stalled. Passenger car production tumbled 44% year-on-year in March to 122,037 units. This marks the lowest output in more than ten years although the lockdown began on March 25.
Market participants informed SSESSMENTS.COM that domestic PP and PE plants attempted to resume production at lower rates. However, most of the producers shut their plants completely in the face of low demand and high inventories. Producers have also slashed prices, but it failed to boost PP and PP sales.
Haldia Petrochemical, IOCL, MRPL, and Gail suspended operations of all polymers plants due to transport restrictions and significantly-lower conversion activities. Export-oriented producers such as Opal and Reliance continue production albeit at reduced rates, the sources added.
High domestic inventories and low demand are also expected to slow polymer imports in the short term.
