Ongoing PE Demand In India Mostly Supported By Certain Sector
- Leading petrochemical producer in the country adjusted local offers with effect from July 1
- Demand is still ongoing
- Local and import PE prices predicted to remain firm
Market sources reported to SSESSMENTS.COM that the ongoing PE demand in the country mostly supported by a certain sector. In the domestic market, the leading Indian petrochemical producer announced a price increment of INR1,500/ton ($20/ton) for HDPE and LLDPE grades. While for LDPE grades, the producer’s offers were adjusted higher by INR2,000/ton ($26.5/ton), except for LDPE Extrusion Coating increased by INR3,000/ton ($40/ton). All price adjustments with effect from July 1. Regarding the price adjustment, sources stated that it is still too early to discuss as the offers have just been announced in the previous day. Meanwhile, the price list from another producer is still under discussion and yet to be announced. From the import market, the offers for import HDPE Film cargoes from a United Arab Emirates producer captured higher between $10-20/ton from last week and deals were concluded at the initial offer level at $830-840/ton. Sources revealed that the allocation has been sold out as the availability of HDPE Film is limited. While from a Saudi producer, the offers for HDPE Film cargoes are available at $880/ton. As for other grades, import LDPE Film offers from a Saudi and Qatari producer remain stable on a weekly comparison at $910/ton. All import offers on LC at sight, CIF India Main Port basis.
Coming to the week commencing June 29, market sources informed SSESSMENTS.COM that PE demand in the country is still ongoing, mostly supported by the packaging sector. While on the supply front, tightness is still reported especially for HDPE and LDPE grades. However, some players opined that the effect on the market will be limited. As coronavirus cases in the country remain high, sources stated that the logistics issues in the country persist. A manufacturer mentioned that the shipment of cargoes to the company got delayed around two weeks, while the cargoes usually arrived one week after the deal settled.
Pertaining to the outlook, market sources expressed an opinion to SSESSMENTS.COM that local and import PE offers will most likely remain firm in the near term supported by the strong monomer price as well as relatively tight supply. However, players are unsure of its sustainability as the overall demand is still considered lukewarm.
