Acceptance Level On Import PP Homo Raffia Offers Remains Low In India Market
- Market opted to rely on local cargoes, import PP prices unfeasible
- Demand stems mainly from the packaging sector
- Pricing outlook remains in favour of local cargoes compared to import cargoes
SSESSMENTS.COM observe that Indian market players are dissatisfied with the latest import PP offers to the country this week. A trader opted to roll-over the local PP Homo Raffia prices on the company’s end as adjustment has been made last-week following local producers adjustment on PP grades. Local PP Homo Raffia offers stand at INR77,000/ton ($1,031/ton) on cash, EXW Delhi and excluding 18% GST. Speaking about import cargoes, a global trading house commented that despite the recent adjustment in domestic prices, import PP prices remain less attractive. According to the trader’s calculation, local PP Homo Raffia price equivalent to $900/ton, while most import offers are $950/ton or higher. Although, there was some business concluded at $920-930/ton for Omani PP Homo Raffia cargoes last week, but the volume was limited. Acceptance level coming from buyers ranged at $850/ton-level for import cargoes. All import offers on LC at sight, CIF India Main Port basis.
According to market players, the demand for PP materials is good this week. Trader pointed out that the biggest demand came from the packaging sector. Still, customers remain purchasing on a need basis only and rely on local materials. SSESSMENTS.COM noted this condition helps local PP offers to be stable and firm for time being. On the contrary, the acceptance level for import prices in the country remains very low.
Looking ahead, market players shared their view to SSESSMENTS.COM that local producers may increase the PP prices in the weeks to come, but will keep their level lower than import in order to remain competitive. With import price remains firm as before, Indian market participants may continue to refrain engaging import cargoes in the near term.
