Indian Market Players: Foreign PP Suppliers Unable To Compete With Local Offers
- Local PP offers were adjusted
- Middle Eastern suppliers have not announced July shipment offers to India yet so far
- Demand for PP in India is considered good, especially for local materials
Indian market players contacted by SSESSMENTS.COM opined that foreign PP suppliers should be unable to compete with local offers. The suppliers would rather move allocation for India to other markets than adjust down offers to match local offers. According to the players, local PP prices in India are quite low at the moment, even after an increase of INR2,000/ton ($26/ton) compared to last week was applied on PP offers across all grades. Hence, some traders in India did not have import PP offers for this week. Besides, Middle Eastern suppliers have not announced July shipment offers to India yet so far.
Demand for PP in India is considered good, especially for local materials due to attractive prices. However, compared to the previous week, a slight decrease was observed this week as some buyers have finished doing stock replenishments. The current state of demand for PP resins is supported by satisfactory sales from the packaging sector. On the supply side, no significant issues were reported to SSESSMENTS.COM.
Looking ahead, market players in India told SSESSMENTS.COM that PP prices in the country will move in line with crude oil and monomer price movement. Pertaining to lockdown that will be imposed again in certain Punjab areas starting from June 18, market players opined that the impact on PP market should be small.
