As told to SSESSMENTS.COM, an Indian producer is planning to export PP cargoes, considering the ongoing lockdown and undigested supply. The producer informed SSESSMENTS.COM that their PE and PP plants had just started last week. The production just restarted last week and it will take time to reach full capacity, and currently, the plants are running at 70% but will continue to increase soon. Many other producers in India also restarted the production and able to ship out the cargoes smoothly.
Last week the producer sold HDPE Yarn and HDPE Injection in good quantity to China, the source updated to SSESSMENTS.COM. At the moment, there is still a small volume and the producer gives the offer at the same level as last week. For PP, the producer plans to export PP Homo Raffia and PP Homo Injection to China at the end of this week but the offer level is yet to be discussed.
The producer usually is only exporting PE products since their PP allocation is small and only sufficient to cater to domestic demand. However, since the country is under lockdown, they need to clear the inventory and prefer exporting their products than lowering the production rate to avoid oversupply. “Some local converters producing essential products still restock their raw materials to our company at the moment, but we are not sure about the converters producing non-essential products,” the producer added to SSESSMENTS.COM. Pertaining to lockdown, Indian nationwide lockdown has a possibility to be extended again, as such, most market players in India are currently on a wait-and-see position.
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