Indian PP Market Players: Considering Current Market Situation, Further Price Adjustment Is Feasible
- Indian market players anticipating further price adjustment
- Demand found support from a certain sector
- Outlook is on a positive note
Considering the current market situation, Indian PP market players opined that a further price adjustment is feasible. On the week commencing June 8, offers for all grades of PP in India reported stable from last week. Local PP producers in the country are expected to make a further upward price adjustment by INR2,000/ton ($27/ton) within this week, taking into account the healthy demand amid limited supply. Most likely to take place on Wednesday, June 10, evening. In the import market, no fresh offers were reported until the time of publication. Foreign suppliers supposed to discuss offers for July shipment that will be announced after the middle of June. Meanwhile, a regional trading house unveiled to SSESSMENTS.COM that import cargoes gained limited interest in the India market as local cargoes are available at competitive prices.
Demand for PP resins in India reported healthy, especially from the food sector. ONGC Petro additions Limited (OPaL) had run production at its 340,000 tons/year PP plant at maximum capacity since ten days ago on the back of healthy demand. On the supply front, SSESSMENTS.COM was told that most of the Indian PP producers are having low inventory levels at the moment. In the logistic sector, disruption in the delivery of materials persists.
In the near future, Indian PP market players are anticipating further upward price adjustment on the back of tight supply amid healthy demand. Further added, demand in July is expected to be robust as the Indian government is supposed to lift the lockdown by that time, as stated to SSESSMENTS.COM.
