SSESSMENTS.COM managed to get clarification from Indian polyolefins producers regarding the delayed delivery of PE and PP cargoes to the China market. Market talks have it that the leading Indian petrochemical producer is prioritizing the delivery for high priced cargoes; thus there are some delays for the delivery of materials purchased earlier at lower prices. In response to this issue, the producer stated, “We will cater all export orders. There were some delays on shipment since previously, we had some manpower issues, but it is getting resolved now. At the moment, all of the materials are continuously being dispatched and shipped out. But indeed, the rate of outbound movement has slowed down recently. There is no issue in our production activity, we are running at maximum capacity.”
Likewise, another Indian PE supplier to the China market also experiences shipping delays. According to the market talks, the producer was having production glitch on the back of the recent hurricane (Cyclone Amphan) that kicked-in in the country. At the moment, the producer’s plant is already running at the maximum capacity but the allocation remains limited. As such, some Chinese traders believe that the delivery for July shipment cargoes might face some delays at least for a month. As contacted by SSESSMENTS.COM, the producer confirmed that there are some delays on the delivery for June shipment cargoes, “It is true that the delivery for June shipment is being postponed. The major ground of the delay is due to the reduced vessel availability. It is not related to the hurricane. After lockdown is being imposed in several countries, vessel movement has been significantly decreased across the world.”
