The leading Indian petrochemical producer shared with SSESSMENTS.COM the sales achievement to the export market as well as opinion on PP pricing outlook. To China market, the producer concluded deals at the end of last week and early of this week at the initial offer level at $910/ton. While to Vietnam and Indonesia market, done deals were achieved at the initial offer level to slightly lower by $5/ton. In addition to that, the producer also mentioned that buyers in Sri Lanka are better in accepting the recent offers compared to Bangladeshi buyers since deals managed to be concluded at the initial offer level to Sri Lanka while to Bangladesh at $10/ton lower. Meanwhile, the producer also managed to sell to the Turkey market at $920/ton and the volume of purchases is quite big. All offers on LC at sight, CIF Main Port basis. Further added, the producer stated that the response for the recent offers from the Africa market is considered satisfactory. In terms of prices, the offers for PP Homo Raffia were kept stable on a weekly comparison.
Despite the positive response from buyers, the producer opined to SSESSMENTS.COM that there would be no room for the price to increase further as the price was kept stable due to the limited supply only, while the actual demand is not that strong. For example, in Sri Lanka, the offers from Middle Eastern suppliers are scarce and the offers are also higher which led to good demand for Indian cargoes. Hence, the offers should have been stable as the current demand could not be considered as strong yet while the price level is already quite high.
Whereas in the domestic market, the producer mentioned that strong demand is only recorded for PP Homo Raffia grade. While for Copolymer and Injection grades, SSESSMENTS.COM was told that the demand is still far below the normal demand condition despite the improvement observed. As such, the offers in the local market should have been stable as well since the appreciation of Indian Rupee against US Dollar will give limited room for the prices to increase.
