Robust Demand For Local PE Cargoes Seen In India Market As Import Offers Remain Unattractive
- Local offers for several PE grades in the open market continued last week’s trend
- Demand mostly comes from the packaging sector
- Local PE supply is tight, but buyers are unkeen to take import cargoes
Market sources reported to SSESSMENTS.COM that robust demand for local PE cargoes is seen in the India market as import offers remain unattractive, even after local PE offers increased last week. As for this week, offers for PE across all grades from local producers and some traders were unchanged from last week. However, offers for HDPE Film, HDPE Blow Moulding and LDPE Film in the open market increased further by INR1,000/ton ($13/ton) compared to the same period. There are also some traders that adjusted up HDPE Film offers by INR1,500/ton ($20/ton) compared to a fortnight ago due to limited availability. For import, HDPE Film offers from the Middle East are available between $880-920/ton while LDPE Film between $910-940/ton on LC at sight, CIF Nhava Sheva Port. Based on SSESSMENTS.COM’s pricing database, the offers were relatively stable compared to a week ago.
SSESSMENTS.COM was informed that demand for PE in India is robust, especially for local HDPE Film and LLDPE Film C4. Demand mostly comes from the packaging sector. Most converters are already running at 70-80% of the normal production rate and some plan to increase the rate to maximum capacity. On the supply side, supply for local PE in India is rather tight. However, buyers are still unkeen to take import cargoes.
In terms of outlook, market players opined to SSESSMENTS.COM that local PE prices in India are more likely to increase in the near future since robust demand is expected to sustain. Besides, PE prices in China and Southeast Asia are higher than in India at the moment.
