India PE Market On The Move Amid Industries Resumption
- Local, localized PE prices shifted
- Demand is ongoing as factories restarting their activities
- Outlook would be good for a meantime
India PE market is on the move amid industries resumption, sources told SSESSMENTS.COM. A trader informed that localized offers for Middle Eastern HDPE Film and LDPE Film cargoes surged by INR2,000-3,000/ton ($26-39/ton) and INR3,000/ton ($39/ton), respectively, on a weekly comparison. An upward price trend also captured in the local LLDPE Film C4, which stood at INR63,000-64,000/ton ($835-848/ton) on cash, EXW Mumbai basis and excluding 18% GST, recording gains of INR2,000/ton ($26/ton) from a week ago. From the import market, a trader reported that there are no fresh offers from producers with them maintaining prices from last week. HDPE Film from the Middle East and Iran offered at $760-770/ton and $750/ton respectively. Likewise, LDPE Film and LLDPE Film C4 originating from the Middle East is still at $840-870/ton and $750-760/ton, respectively. All import offers were on LC at sight, CIF India Main Port basis.
A global trading house informed SSESSMENTS.COM that their sales for PE resins in India market have reached 50-60% compared to sales in normal time. Although the trader said that lower PE prices drove demand, another trader shared their positive thoughts that the ongoing demand is supported by the resumption of industries in many states in India with the highest concentration coming from the packaging industries. No issue in supply was reported until the time of publication of this article.
Market sources contacted by SSESSMENTS.COM commented that the India PE market would continue to improve in June, but it would not last long. At a certain point, buying activities will be weakening again once buyers already secured enough cargoes, and the market then will stabilize since industries are waiting for Coronavirus pandemic to disappear.
Click below to view related stories and content on India PE market:
NewsSSESSMENTS: Leading Indian Petrochemical Producer Announces Changes On Local PE, PP Prices
WeeklySSESSMENTS: India PE Prices Week Starting May 18
