Indian PE Market Is Moving To A Positive Note
- Leading Indian petrochemical producer announced price adjustment with effect from June 11
- Demand for certain PE grade reported healthy
- Market players stated positive outlook
With effect from June 11, 2020, the leading Indian petrochemical producer adjusted up the offers for HDPE Blow Moulding by INR2,000/ton ($26/ton) and by INR1,000/ton ($13/ton) for HDPE Film, LDPE Film, and LLDPE Film C4. Before the leading Indian petrochemical producer announced the price adjustment, an Indian trader has increased its local offers for LLDPE Film C4 between INR1,000-2,000/ton ($13-26/ton) on June 10, as compared to last week’s level. Strong demand amidst the limited supply claimed as the major ground of the price increases. In the import market, no fresh offers were reported until the time of publication. Price announcements for July shipment from foreign suppliers are expected to come out by next week, as stated to SSESSMENTS.COM.
SSESSMENTS.COM was told that the demand for LLDPE Film C4 is the strongest since all sectors are doing good, especially for inner packaging. Other than that, viable demand for sanitizer bottles has supported the demand for HDPE Blow Moulding. Demand for HDPE Pipe also started to improve. On the supply front, the availability of local PE cargoes was reported limited. Particularly for HDPE grades, only the leading Indian petrochemical producer who has some quantities to offer to the market while other local producers do not have any stock at the moment.
In the near future, considering the healthy demand amidst the limited supply, local PE prices are expected to remain firm. Buyers anticipate further upward price adjustment of between INR1,000-2,000/ton ($13-26/ton) from the local producers. Additionally, buyers also anticipate firm offers for import materials for July shipment. Citing the strong energy market coupled with the recovery of the world’s economy, the room for downward price adjustment is very limited, as stated to SSESSMENTS.COM.
