Sources: India PE Market Will Gradually Recover Amid Lockdown Relaxation
- Some businesses outside containment zones allowed to reopen
- Indian Oil Corporation Ltd (IOCL) has resumed production at the company’s HDPE plant
- Players expect PE demand and prices to recover amid lockdown relaxation
Indian market participants voiced out to SSESSMENTS.COM that PE demand and prices will recover amid the lockdown relaxation in the country. On the week commencing May 11, the leading Indian petrochemical producer decided to roll over local HDPE Film and LLDPE Film C4 offers. While a local trader maintains stable offers for LLDPE Film C4 from last week. Likewise, offers for localized Middle Eastern HDPE Film, HDPE Blow Moulding, and LDPE Film from the trader remain unchanged and stand between INR64,000-70,000/ton ($856-936/ton) on cash, EXW Mumbai basis and excluding 18% GST. In the import market, US HDPE Film offers are available at $50-60/ton higher compared to a fortnight ago. These cargoes are shipped from Taiwan.
The Indian government has decided to extend nationwide lockdown until May 17 with some new guidelines which allow some businesses outside containment zones to reopen. However, so far, no improvement was seen for PE demand. Moreover, the government may extend lockdown beyond May 17 in Red Zones districts such as Delhi and Mumbai, which contribute to the high demand in India. So far, no official announcement yet. In the production sector, Indian Oil Corporation Ltd (IOCL) has resumed production at the company’s 300,000 tons/year HDPE plant located in Panipat complex within this week. On the supply side, no significant issue reported to SSESSMENTS.COM.
Looking ahead, with the lockdown relaxation, Indian market players are expecting PE demand to gradually recover as more businesses will reopen. As such, PE prices will most likely increase in line with better demand, as stated to SSESSMENTS.COM.
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