India PP Market Found Support From Rising Feedstocks, Monomer Prices Despite Lockdown Extension
- India extends lockdown until June 30
- Local producers mulled a round of price increase, supported by rising feedstock and monomer prices
- Demand remains in an upbeat momentum
SSESSMENTS.COM’s pricing database showed that India PP market has found support from rising feedstocks and monomer prices despite lockdown extension in some parts of the country. This week, a large number of local producers maintained their high price quotes to the domestic market. In the domestic market, the leading Indian petrochemical producer has announced a fresh price list, with effect from June 1, 2020. As compared to the previous price list, the producer initiated a price increase of INR3,000/ton ($40/ton) for PP Homo Raffia and PP Homo Injection grades. Likewise, another Indian producer also made an upward adjustment on local PP Homo Raffia prices by INR3,200/ton ($42.6/ton) with effect from June 1, 2020. Rising feedstock and monomer prices were cited as factors pushing local producers to raise their offers, sources reported to SSESSMENTS.COM.
On May 29, India has extended its ongoing lockdown restrictions in high-risk containment areas marked as red zones until June 30 as part of step-up measures to contain the spread of the deadly virus in the country. Despite the country reported its biggest single-day jump in cases, the Indian government has begun lifting its lockdown measures in a phase-wise manner by allowing more businesses and educational institutions to resume activities from June 8, in a bid to fight the economic fallout of a continuing lockdown. Since the country is taking a gradual approach to lifting restrictions, domestic demand is showing signs of recovery within the last few weeks. Following the improvement in domestic demand, some local producers divert their export allocation to the domestic market. On the supply front, the availability of spot PP cargoes in the domestic and import market remains sufficient, no significant issues reported to SSESSMENTS.COM.
In terms of outlook, market players in India voiced out to SSESSMENTS.COM that local prices are likely to remain firm in the near term on the back of higher feedstock and monomer prices, coupled with growing buying activity amid lockdown relaxations.
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