Local PP Offers In India To Trail International Market Trend
- Import PP offers remain scarce
- Indian Oil Corporation Ltd (IOCL) shut PP plant in Paradip
- Local PP prices predicted to follow the international market trend
Market sources opined to SSESSMENTS.COM that the local PP offers in India will trail the international market trend. For the week commencing July 27, the offers for local PP Homopolymers and PP Clock Copolymer cargoes captured stable on a weekly comparison. From the import market, there were no fresh import offers recorded by the time of publication of this article. Additionally, market players are still questioning the workability of import PP offers considering the competitive offers in the domestic market.
As reported to SSESSMENTS.COM, there is no significant improvement observed in terms of demand this week. Healthy demand is still recorded for PP Homo Raffia grade. While for PP Homo Injection and PP Copolymers grades, the demand reportedly sluggish stemming from the slow sales from automotive and household sectors. Other than that, some players prefer to adopt a wait-and-see stance while monitoring the market movement. On the production sector, sources informed that Indian Oil Corporation Ltd (IOCL) has shut its PP plant with a capacity of 340,000 tons/year for maintenance purposes. The plant located in Paradip, Odisha, India, was shut last weekend around July 25-26 and will remain off-line for about two weeks. From the supply front, there is no significant issue reported.
For the outlook, market sources predict that movements in local PP prices will most likely follow the international market trend. If import offers continue to move higher, domestic prices will follow suit. Otherwise, local PP offers are expected to remain stable in the near term, SSESSMENTS.COM was told.
