Indian Market Players Remain Optimistic On PE Demand Recovery As Market Plateaus
- India extends lockdown until May 31
- Rising energy market lifted market sentiment and domestic demand
- Leading Indian petrochemical producer revised prices
As stated to SSESSMENTS.COM, Indian market players remain optimistic on PE demand recovery as market plateaus. In the domestic market, the leading Indian petrochemical producer has announced a fresh price list, with an effect from May 21, 2020. As compared to the previous price list, the producer applied a price increase of INR1,000/ton ($13/ton) for HDPE Film grades and INR2,000/ton ($26/ton) for LDPE Film and LLDPE Film C4 grades.
India has been under lockdown restrictions since March 25, with the nation’s official tally of coronavirus infections has crossed the 100,000-mark as there have been 106,750 total confirmed cases reported in the country and 3,303 deaths so far. On Sunday, May 17, the Indian government announced a two-week extension in ongoing countrywide lockdown until May 31 after the country recorded its biggest single-day jump in cases. In a bid to stem the economic fallout of a continuing lockdown, India has begun lifting some lockdown measures on their pandemic-wounded businesses in a lower-risk region marked as green and orange zones. Most low-risk businesses were given the green light to resume operations under safety guidelines. In Gujarat state, downstream factories are already running at 70% from the normal output. As crude oil prices have been relentlessly headed higher, market sentiment and domestic demand started to turn around from last week. On the supply front, no issue was reported to SSESSMENTS.COM.
Most sources in India voiced out that the authorities might extend its nationwide lockdown beyond May 31 as Coronavirus cases continue to climb. In spite of the possibility of another lockdown extension, some sources foresee the possibility of PE prices to move higher in the near term considering the rally in feedstock prices and rising demand.
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