Manifold Factors Shifted PE Demand Trend In India
- Local, localized and import PE prices move in tandem
- Manifold factors dampened buying appetite
- Indian market players stated bearish outlook in the near time
Over the week, SSESSMENTS.COM noted that local, localized and import PE prices in India remained unchanged. Most sellers maintained the offers for local and localized HDPE Blow Moulding, HDPE Film, LDPE Film, and LLDPE Film C4 stable from last week’s level since local producers have yet to announce price adjustments. In the import market, on a weekly comparison a Saudi producer decided to roll-over the offers for HDPE Blow Moulding, HDPE Film, and LDPE Film. The deals for HDPE Blow Moulding of Saudi origin were concluded at the initial level, at $920/ton. Market talks have it that Middle Eastern LDPE Film available between $920-940/ton, or between $20-40/ton lower than last week’s level. Likewise, rumours have it that US LLDPE Film C4 has decreased between $90-100/ton compared to last week, available between $810-820/ton. All import offers are on LC at sight, CIF India main port basis.
Demand for PE resins has started to slow down due to manifold factors. Sufficient inventory on hand, buyers’ resistance towards high prices, and the uncertainties of market condition have hindered buyers from procurement activities. On the supply front, SSESSMENTS.COM was told that supply for HDPE Film and LDPE Film in the local market remains limited, hence, buyers are procuring import materials. While for LLDPE Film C4, local cargoes are preferable since the offers are more competitive compared to import cargoes. From the downstream market, medium to big converters are running around 50-60% from the maximum capacity. While small scale converters prefer to shut the production due to the volatile market.
Looking ahead, Indian market players opined that local PE prices would remain stable to increase, especially for HDPE Film as the availability in the market is limited. In terms of demand, in the upcoming ten to fifteen days, market direction will be more clearer and buyers will consider taking positions in procurement activities, as stated to SSESSMENTS.COM.
