- Uptrend in local PE prices recorded only at the beginning of January
- Several factors hampered PE demand
- Slow PE market due to Coronavirus outbreak expected to prolong until unspecified time
During Q1 2020, SSESSMENTS.COM noted that the financial year-end, the crash in crude oil prices, and Coronavirus outbreak demolished good sentiment in the India PE market. In January, India PE market was on an uptrend. Offers for local HDPE Film, LDPE Film, and LLDPE Film C4 increased by INR1,000/ton ($13/ton), INR1,500/ton ($20/ton), and INR1,500/ton ($20/ton), respectively. In February, producers and traders in the country made a downward price adjustment in an attempt to move out the cargoes before the year-end financial report. The leading Indian petrochemical producer trimmed the offers for HDPE Film by INR1,500/ton ($20/ton). While from the traders’ end, with effect from February 20, offers for local HDPE Blow Moulding decreased by INR2,000/ton ($26/ton) in total, HDPE Film between INR3,000-4,000/ton ($40-53/ton), and HDPE Pipe (PE 100) between INR1,500-2,000/ton ($20-26/ton). For local LDPE Film, the offers decreased by INR1,000/ton ($13/ton) and between INR1,000-2,000/ton ($13-26/ton) for local LLDPE Film C4.
In March, the limited supply for LLDPE Film C4 supported prices to surge by INR1,000/ton ($14/ton) at the beginning of the month. However, the crash in crude oil prices pushed some Indian traders to reduce prices for all grades of PE between INR1,000-2,000/ton ($13-27/ton). Meanwhile, the leading Indian petrochemicals producer announced price protection valid from March 12 until April 1 or the next price adjustment. In the last week of March, SSESSMENTS.COM noted that there was no transaction in the PE market as the government imposed the nationwide lockdown starting from Tuesday, March 24 for around 21 days.
From import, Saudi mLLDPE C6 and LDPE Film prices in January increased by $80/ton, and by $60/ton for HDPE Film and LLDPE Film C4. Likewise, Middle Eastern HDPE Film cargoes also up by $10/ton on the low-end of price range and by $10/ton for LLDPE Film C4. In the following month, March shipment offers for PE across all grades of Middle East origin decreased by $20/ton as compared to February shipment, as noted by SSESSMENTS.COM. While in the second week of March, HDPE Film of Middle East origin fell by $50/ton on a weekly comparison.
Several factors hampered demand for PE resins during Q1 2020. Healthy demand was only observed at the beginning of January and March. The firm offers for local cargoes in January successfully stimulated buying appetite. While in March, demand for HDPE Pipe reported satisfactory on the back of the traditional peak season. Other than these times, demand reported slow due to the liquidity issues, global economic slowdown, and the downtrend in crude oil prices. Besides, at the end of March, the India PE market was muted due to the nationwide lockdown imposed by the government in a battle to fight the Coronavirus outbreak, as noted by SSESSMENTS.COM.
On the supply front, limited supply for HDPE Film reported in February. While in March, tight availability was reported for HDPE Film, LDPE Film, and LLDPE Film C4. On the production front, at the end of the March, India’s Haldia Petrochemicals Limited (HPL) declared force majeure on supply and planned to shut the company’s petrochemical complex due to Coronavirus outbreak. Based on SSSSMENTS.COM’s supply and demand database, Haldia’s HDPE and LLDPE plants have a production capacity of 345,000 tons/year and 365,000 tons/year, respectively.
Entering Q2 2020, market participants expressed a bearish outlook for the India PE market. As the government enforced the lockdown for 21 days, businesses will still be on a standstill until April, SSSSMENTS.COM was told. Additionally, even though the lockdown is lifted, demand would not pick up immediately as it needs time for market and the country’s economy to recover from Coronavirus impact.
Range of local PE offers in January on cash, EXW basis (all excluding 18% GST)
| Origin | Product | Transaction Type | Currency | Offers (INR/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| India | HDPE Blow Moulding | Offer Given | INR | 73,500-76,800 | 970-1,013 | Kanpur |
| India | HDPE Blow Moulding | Price List | INR | 72,800-76,800 | 961-1,013 | Kanpur |
| India | HDPE Blow Moulding | Offer Given | INR | 73,000 | 963 | Kolkata |
| India | HDPE Blow Moulding | Offer Given | INR | 75,000 | 990 | Mumbai |
| Saudi | HDPE Blow Moulding | Offer Given | INR | 68,000-70,000 | 897-924 | Mumbai |
| India | HDPE Film | Price List | INR | 76,500-77,500 | 1,010-1,023 | Kanpur |
| India | HDPE Film | Offer Given | INR | 75,000-76,000 | 990-1,003 | Kolkata |
| India | HDPE Film | Offer Given | INR | 76,000-78,000 | 1,003-1,029 | Mumbai |
| India | HDPE Film | Offer Given | USD | 860 | - | Mumbai |
| India | HDPE Film | Offer Received | INR | 74,000 | 977 | Mumbai |
| Saudi | HDPE Film | Offer Given | INR | 74,000-78,000 | 977-1,029 | Mumbai |
| India | HDPE Pipe (PE 100) | Offer Given | INR | 78,000-79,000 | 1,029-1,042 | Kolkata |
| India | HDPE Pipe (PE 100) | Offer Given | INR | 75,000-77,000 | 990-1,016 | Mumbai |
| India | HDPE Yarn | Price List | INR | 76,400-78,000 | 1,008-1,029 | Kanpur |
| India | LDPE Film | Offer Received | INR | 76,000-76,500 | 1,003-1,010 | Mumbai |
| Saudi | LDPE Film | Offer Given | INR | 75,000-76,500 | 990-1,010 | Mumbai |
| India | LLDPE Film C4 | Offer Given | INR | 72,600 | 958 | Kanpur |
| India | LLDPE Film C4 | Price List | INR | 72,600-74,100 | 958-978 | Kanpur |
| India | LLDPE Film C4 | Offer Given | INR | 71,000 | 937 | Kolkata |
| India | LLDPE Film C4 | Offer Given | INR | 66,000-68,000 | 871-897 | Mumbai |
| India | LLDPE Film C4 | Offer Given | USD | 840 | - | Mumbai |
| Saudi | LLDPE Film C4 | Offer Given | INR | 66,000-67,000 | 871-884 | Mumbai |
Range of import PE offers in January on LC at sight, CIF India Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | HDPE Blow Moulding | Price List | 850-860 |
| Middle East | HDPE Film | Offer Received | 780-860 |
| Middle East | HDPE Film | Price List | 860-880 |
| Middle East | HDPE Film | Purchased | 780 |
| North America | HDPE Film | Offer Received | 860 |
| North America | HDPE Film | Purchased | 895 |
| Middle East | LDPE Film | Offer Given | 930-945 |
| Middle East | LDPE Film | Offer Received | 920-960 |
| Middle East | LDPE Film | Purchased | 950 |
| North America | LDPE Film | Offer Received | 960 |
| Middle East | LLDPE Film C4 | Offer Received | 850-860 |
| Middle East | LLDPE Film C4 | Bid Received | 770 |
| Middle East | LLDPE Film C4 | Price List | 850-860 |
| Middle East | LLDPE Film C4 | Purchased | 890 |
| Middle East | mLLDPE C6 | Offer Given | 1,130 |
Range of local PE offers in February on cash (all excluding 18% GST)
| Origin | Product | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Term | Delivery Location |
|---|
| India | HDPE Blow Moulding | Offer Given | 73,000-74,000 | 963-977 | EXW | Delhi |
| India | HDPE Blow Moulding | Price List | 73,500-76,800 | 970-1,013 | EXW | Kanpur |
| India | HDPE Blow Moulding | Offer Given | 72,000-73,000 | 950-963 | EXW | Kolkata |
| India | HDPE Blow Moulding | Offer Received | 73,000 | 963 | EXW | Kolkata |
| Saudi | HDPE Blow Moulding | Offer Given | 68,000-70,000 | 897-924 | EXW | Mumbai |
| Saudi | HDPE Film | Offer Given | 75,000-77,000 | 990-1,016 | EXW | Bhiwandi |
| India | HDPE Film | Offer Given | 80,000 | 1,056 | EXW | Delhi |
| India | HDPE Film | Price List | 77,500 | 1,023 | EXW | Kanpur |
| India | HDPE Film | Offer Given | 76,000 | 1,003 | EXW | Kolkata |
| India | HDPE Film | Offer Given | 69,000-77,000 | 911-1,016 | EXW | Mumbai |
| India | HDPE Film | Offer Given | 70,000 | 924 | FD | Mumbai |
| Iran | HDPE Film | Offer Given | 71,500 | 945 | EXW | Mumbai |
| Saudi Arabia | HDPE Film | Offer Given | 71,000-74,000 | 937-977 | EXW | Mumbai |
| USA | HDPE Film | Offer Given | 70,000-72,000 | 924-950 | FD | Mumbai |
| USA | HDPE Film | Offer Given | 70,000 | 924 | EXW | Mumbai |
| India | HDPE Pipe (PE 100) | Offer Given | 78,000-79,000 | 1,029-1,042 | EXW | Kolkata |
| India | HDPE Pipe (PE 100) | Offer Given | 74,000-74,500 | 977-983 | FD | Mumbai |
| India | HDPE Yarn | Price List | 77,400-78,000 | 1,021-1,029 | EXW | Kanpur |
| India | HDPE Pipe (PE 100) | Offer Given | 78,000-79,000 | 1,029-1,042 | EXW | Kolkata |
| India | HDPE Pipe (PE 100) | Offer Given | 74,000-74,500 | 977-983 | FD | Mumbai |
| Saudi | LDPE Film | Offer Given | 76,000-80,000 | 1,003-1,056 | EXW | Bhiwandi |
| United Arab Emirates | LDPE Film | Offer Given | 77,000 | 1,016 | EXW | Bhiwandi |
| India | LDPE Film | Offer Given | 76,000-77,000 | 1,003-1,016 | EXW | Delhi |
| Saudi | LDPE Film | Offer Given | 75,000 | 990 | EXW | Mumbai |
| Qatar | LDPE Film | Offer Given | 74,000-75,000 | 977-990 | EXW | Mumbai |
| Saudi | LLDPE Film C4 | Offer Given | 71,000 | 937 | EXW | Bhiwandi |
| India | LLDPE Film C4 | Offer Given | 66,000-67,000 | 871-884 | EXW | Delhi |
| India | LLDPE Film C4 | Offer Given | 66,000-74,100 | 871-978 | EXW | Kanpur |
| India | LLDPE Film C4 | Price List | 74,000-74,100 | 977-978 | EXW | Kanpur |
| India | LLDPE Film C4 | Offer Given | 70,000-71,000 | 924-937 | EXW | Kolkata |
| India | LLDPE Film C4 | Offer Given | 65,000-65,500 | 858-864 | FD | Mumbai |
| India | LLDPE Film C4 | Offer Given | 65,000-67,000 | 858-884 | EXW | Mumbai |
| Saudi | LLDPE Film C4 | Offer Given | 64,000-67,000 | 845-884 | EXW | Mumbai |
Range of import PE offers in February on LC at sight, CIF India Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | HDPE Blow Moulding | Sold | 820 |
| Central Asia | HDPE Film | Offer Received | 840 |
| Middle East | HDPE Film | Offer Received | 860-920 |
| Middle East | HDPE Film | Sell Idea | 900 |
| Middle East | HDPE Film | Sold | 830 |
| North America | HDPE Film | Offer Received | 830-850 |
| North America | HDPE Film | Purchased | 850 |
| Northeast Asia | HDPE Film | Offer Received | 850 |
| Middle East | LDPE Film | Offer Received | 950-980 |
| Middle East | LDPE Film | Sell Idea | 980 |
| Northeast Asia | LDPE Film | Offer Received | 940 |
| Middle East | LLDPE Film C4 | Offer Received | 860-900 |
| Middle East | LLDPE Film C4 | Sell Idea | 860 |
| North America | LLDPE Film C4 | Offer Received | 810-820 |
| North America | LLDPE Film C4 | Purchased | 820 |
| Northeast Asia | LLDPE Film C4 | Offer Received | 830-850 |
Range of local PE offers in March on cash, EXW basis (all excluding 18% GST)
| Origin | Product | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| India | HDPE Blow Moulding | Offer Given | 73,500-76,800 | 970-1,013 | Kanpur |
| India | HDPE Blow Moulding | Offer Given | 72,000-73,000 | 950-963 | Kolkata |
| India | HDPE Blow Moulding | Offer Given | 67,000-69,500 | 884-917 | Mumbai |
| Saudi | HDPE Film | Sell Idea | 75,000-77,000 | 990-1,016 | Bhiwandi |
| India | HDPE Film | Price List* | 71,400-75,000 | 942-990 | Kanpur |
| India | HDPE Film | Offer Given | 69,000-72,000 | 911-950 | Mumbai |
| India | HDPE Film | Offer Received | 75,000 | 990 | Mumbai |
| Saudi | HDPE Film | Offer Given | 71,000 | 937 | Mumbai |
| USA | HDPE Film | Offer Given | 71,500-72,000 | 944-950 | Mumbai |
| India | HDPE Injection | Offer Given | 72,000 | 950 | Kolkata |
| India | HDPE Pipe (PE 100) | Price List* | 82,400-82,600 | 1,087-1,090 | Kanpur |
| India | HDPE Pipe (PE 100) | Offer Given | 72,000-74,000 | 950-977 | Mumbai |
| India | HDPE Yarn | Price List* | 72,400-77,400 | 955-1,021 | Kanpur |
| Saudi | LDPE Film | Sell Idea | 76,000 | 1,003 | Bhiwandi |
| India | LDPE Film | Price List* | 70,100-75,100 | 925-991 | Kanpur |
| India | LDPE Film | Offer Given | 73,000-74,000 | 963-977 | Mumbai |
| Qatar | LDPE Film | Offer Given | 74,000-75,000 | 977-990 | Mumbai |
| Saudi | LDPE Film | Offer Given | 74,000-75,000 | 977-990 | Mumbai |
| Saudi | LLDPE Film C4 | Sell Idea | 71,000 | 937 | Bhiwandi |
| India | LLDPE Film C4 | Offer Given | 74,100 | 978 | Kanpur |
| India | LLDPE Film C4 | Price List* | 74,100 | 978 | Kanpur |
| India | LLDPE Film C4 | Offer Given | 70,000 | 924 | Kolkata |
| India | LLDPE Film C4 | Offer Received | 64,000-65,000 | 845-858 | Mumbai |
| India | LLDPE Film C4 | Sold | 64,500 | 851 | Mumbai |
| India | LLDPE Film C4 | Offer Given | 62,500 | 825 | Mumbai |
Description: *Offers on LC at sight EXW basis
Range of import PE offers in March on LC at sight, CIF India Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | HDPE Blow Moulding | Offer Received | 810-880 |
| Middle East | HDPE Film | Offer Received | 840-850 |
| Middle East | HDPE Film | Offer Given | 780-800 |
| North America | HDPE Film | Offer Received | 810-880 |
| North America | HDPE Film | Sell Idea | 800-810 |
| North America | HDPE Film | Offer Received | 820-830* |
| North America | HDPE Film | Sold | 820-830* |
| Middle East | LDPE Film | Offer Received | 860-940 |
| Middle East | LDPE Film | Bid Given | 900-920 |
| North America | LDPE Film | Offer Given | 940-960** |
| Middle East | LLDPE Film C4 | Offer Received | 900 |
Description: *Shipment from Taiwan**Shipment from Dubai and Singapore
Tags: English,ISC,India,PE,Quarterly
Published on April 10, 2020 8:40 PM (GMT+8)
Last Updated on May 8, 2020 10:44 AM (GMT+8)
