Import Offers Hoist Domestic PE Prices In India
- Adjustment on local PE prices following the import price trend
- Supply conditions buoy demand for certain PE grade
- Further adjustment remains in view, particularly for HDPE Film
The import PE price trend has hoisted local PE prices in India. With effect from July 16, local producers in India made an upward price adjustment. Offers for HDPE Blow Moulding increased by INR3,000/ton ($40/ton) and INR2,000/ton ($27/ton) for HDPE Film, HDPE Yarn and HDPE Pipe. For LDPE Film, the prices have gone up by INR2,500/ton ($33/ton) and INR2,000/ton ($27/ton) for LLDPE Film C4. The upward price adjustment from producers’ end had been predicted as import offers available at higher levels. From the trader’s end, SSESSMENTS.COM recorded an increase of INR2,000/ton ($27/ton) on offers for LDPE Film. In the import market, Saudi HDPE Film, LDPE Film, and LLDPE Film C4 increased between $30-40/ton. Likewise, US HDPE Film and LDPE Film increased between $30-40/ton. For mLLDPE C6, US cargoes surfaced with an increase of $30/ton following the current uptrend in the international market, stood at $1,020/ton on LC at sight, CIF India main port basis. All changes in import offers on weekly comparison. The firm import offers are not preferable since local cargoes are available at lower levels. Added to that, buyers are looking for prompt delivery cargoes.
Demand for HDPE Film reported healthy on the back of tight supply in the market. At the moment, local producers prioritize the production of HDPE Blow Moulding and HDPE Pipe due to better margin, which led to limited availability of HDPE Film in the market. However, producers claimed that supply for HDPE Film will be eased after July 21. For other grades, such as LDPE Film and LLDPE Film C4, demand is ongoing but not as strong as HDPE Film. SSESSMENTS.COM was told that demand for the end-products is dampened by the monsoon season. In the production sector, most converters are running at 50-70% from the maximum capacity. On the logistic side, the shortage of manpower is still the major problem at the moment.
In the days to come, Indian market players predict that HDPE Film prices still have room to increase further due to limited supply. In terms of demand, the preparation of Diwali Festival is supposed to cause an improvement in demand. However, buyers are not sure whether this year the same pattern would be seen, as stated to SSESSMENTS.COM.
