Buying Sentiment In India PP Market Shifted Following Crude Oil Price Movements
- Import PP offers in India remain scarce
- Sales at a local producer’s end quite satisfactory compared to last week
- PP market will remain bearish onward
Indian market participants informed SSESSMENTS.COM that buying sentiment in India PP market shifted following crude oil price movements. On the week commencing May 11, offers for PP Homo Raffia and PP Homo Injection from a local producer in India remain unchanged on a weekly comparison. Likewise, offers for localized Saudi PP Homo Raffia cargoes remain stable and stand at INR65,000-67,000/ton ($867-894/ton) on cash, EXW Mumbai basis, and excluding 18% GST. In the import market, no fresh offers recorded.
The higher crude oil prices coupled with the stable prices in the Southeast Asia region have lifted buying sentiment in India. Sales at a local producer’s end are quite satisfactory compared to last week. However, the current sales are still below normal sales. In the production sector, Indian Oil Corporation Ltd (IOCL) has resumed production at the company’s 600,000 tons/year PP plant located in Panipat complex this week, however, no exact date revealed to SSESSMENTS.COM. While for the company’s 700,000 tons/year PP plant at Paradip complex is yet to restart.
Looking ahead, Indian market players opined to SSESSMENTS.COM that the PP market will remain bearish onward and normal market activities will only be seen after the lockdown ended. Additionally, the government may extend the lockdown beyond May 17 in Red Zones districts, such as Delhi and Mumbai, that contribute to the high demand in India market.
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