The leading Indian petrochemical producer revealed to SSESSMENTS.COM its export PP offers to Asia market. The producer informed that they don't have any new offers to China after making deals three weeks ago and only offering to South Asia and Southeast Asia this week. PP Homo Raffia offers to Indonesia and Vietnam stand at $920/ton, up by $20/ton from the deal levels last week. These offers remain valid for July shipment yet volume is limited. To date, approximately 90% of the producer’s allocation to the Southeast Asia market has been sold out. Speaking of South Asia, the latest offer for PP Homo Raffia stands at $950/ton after absent last week. So far, deals can only be concluded at such a level to Sri Lanka; while Bangladesh is showing resistance towards these offers. The producer added further that last week their company received a lot of inquiries from Latin American traders as the region's business are anticipating for a PP price hike as a result of higher monomer costs. All import offers are on LC at sight, CIF/CFR Main Port basis.
Speaking more about export allocations, the producer told that they exported around 150,000 tons of PP cargoes in March-April; but now the volume has come down to average level at approximately 40,000 tons per month as the domestic demand is gradually picking up. Demand is not quite strong across the region, while only feedstock prices are supporting firm PP prices. For both export and domestic markets, many converters supplying orders for packaging and medical products. Also according to the producer, the Indian market is enjoying good sales for agricultural packaging because of respectable harvest in the country lately. While for the automotive sector, there is no change in PP resins demand so far. On the production side, the producer's plants are all running smoothly as SSESSMENTS.COM quoted from the producer.
In terms of pricing outlook, the producer predicts it will remain firm for the time being. PP price will find support from firm monomers and crude oil prices, SSESMENTS.COM noted.
