Local PP Prices In India Will Continue To Gain Support From Demand, Buyers Predicted To Skip Procuring For August Shipment
- Import PP offers to India remain scarce
- Overall PP demand in India remains steady this week
- August shipment offers from foreign suppliers expected to surface at around $900/ton-level
As informed to SSESSMENTS.COM, local PP prices in India will continue to gain support from demand. On the week commencing July 20, a trader in India maintained stable offers for local PP Homo Raffia on a weekly comparison. While another trader decided to skip offering local PP Homo Raffia cargoes this week as the offers from a local producer deemed too high after the producer increased PP Homo Raffia offers by INR2,500/ton ($33/ton) from the previous offers. As for localized materials, a Mumbai-based trader has sold out all allocation for Middle Eastern PP Homo Raffia cargoes with deals concluded at the same level to the initial offers at INR76,500-77,000/ton ($1,026-1,033/ton) on cash, EXW Mumbai basis and excluding 18% GST. For import cargoes, offers to India remain scarce since last week as most suppliers have not announced August shipment offers yet.
Overall PP demand in India remains steady this week even though cannot be categorized as strong. As the economy and manufacturing activities in the country will be more active, PP market will follow suit and will gradually be better. However, some players stated that due to the sufficient inventory on-hand, buyers will most likely skip procuring for August shipment and started to purchase import cargoes for September shipment. On the supply side, no significant issue reported to SSESSMENTS.COM.
For outlook, considering healthy demand, the possibility for local PP prices to decrease is slim. As for import prices, some players opined that August shipment offers from foreign suppliers to India will surface at around $900/ton-level, as stated to SSESSMENTS.COM.
