The leading Indian petrochemical producer shared with SSESSMENTS.COM pertaining to the latest condition in the domestic and export PE market. To export market, the producer’s offers remain firm this week. As compared to last week’s level, the offers for LLDPE Film C4 to the South Asia market were adjusted up by $40/ton. So far, South Asian buyers, particularly in Sri Lanka, show a good response towards the offers. Some deals were achieved at the initial offer level. To the China market, the producer did not quote any new offers for this week as they are focusing on the delivery of pending orders to this market. For the Bangladesh market, buyers are still showing a stiff resistance towards the offers.
Likewise, Southeast Asian buyers show limited interest in the current offers. As reported to SSESSMENTS.COM, inquiries were scarce, although there were still some deals concluded. Bids received from Southeast Asian buyers were between $20-30/ton lower than the initial offer level. However, the producer is targeting to conclude the deals at $10/ton lower than the initial level. Price increases also captured on HDPE Yarn. As compared to a fortnight ago, export offers for HDPE Yarn to the Southeast Asia market increased by $30/ton. Unlike LLDPE Film C4, Southeast Asian buyers were giving a good response towards these offers and some deals were concluded at the initial offer level.
On the supply front, inventory of HDPE Film remains tight in the India local market as most producers focus on producing HDPE Pipe to cater to demand from the pipe sector. Likewise, the supply for LDPE Film in India market is short. As such, demand for LDPE Film is strong, as stated to SSESSMENTS.COM. Meanwhile, demand for LLDPE Film C4 reported slow. On the supply front, there is no issue at the producer’s PE plants. All are running normally. However, logistic disruption persists due to the labour shortage. Fortunately, the producer manages to deliver the export cargoes as the company is combining it with railway transportation.
Looking ahead, the producer is confident that PE prices in the India market still have some room for further upward price adjustments since PE prices in the international market remain firm. Although ethylene prices have decreased significantly this week, the firm crude oil prices will act as a supporting factor for PE prices to remain on the upward trend. Additionally, according to the producer, the ethylene price has no direct correlation with PE prices, SSESSMENTS.COM was told.
