quarterlyssessments-q1-2020-india-pe-prices

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

QuarterlySSESSMENTS: Q1 2020 India PE Prices

Author: SSESSMENTS

QuarterlySSESSMENTS: Q1 2020 India PE Prices

Author: SSESSMENTS

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