India PP Market Is Securing The Momentum
- Local PP prices have yet to follow the demand trend
- Local PP producers in the country put the domestic market in priority
- Price adjustment is feasible on the back of several supporting factors
On the week commencing May 25, Indian PP market is trying to secure its momentum. Based on the data collected by SSESSMENTS.COM, local PP Homo Injection and PP Homo Raffia prices captured remain stable from last week. Currently, the offers stand between INR75,000-76,000/ton ($993-1,010/ton) on cash, EXW Bengaluru basis and excluding 18% GST. Buyers are showing a good response since the offers deemed workable. In the import market, Middle Eastern PP Homo Raffia offers reportedly remain stable from last week, stands between $830-850/ton on LC at sight, CIF India main port basis.
Demand for all grades of PP resins from the local market has started to improve. At the moment, demand for PP is between 50-60% from the normal demand before the lockdown. On the supply front, some factories have already restarted the production activities after the Indian government announced lockdown relaxation in the last two weeks. SSESSMENTS.COM noted that from now onwards, the leading Indian petrochemical producer will allocate 60% of the total output to the domestic market. Previously, when India was under lockdown, the producer pushed 75% of its total PP allocation to the export market, particularly China. Meanwhile, another PP producer in the country mentioned that they will allocate all of the production volumes to the local market.
Looking ahead, considering the gradual improvement in feedstock prices as well as demand for PP in the local market, the majority of Indian players believe that PP prices still have some room to increase further as much as INR2,000/ton ($27/ton), as stated to SSESSMENTS.COM.
Click below to view related stories and content on India PP:
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