India demand polymers market
India’s demand for polymers in the spot market remains weak India demand polymers market
MOSCOW – The demand for polymers in India in the spot market remains weak against the background of limited domestic liquidations in the country and a downtrend in Asian markets, ICIS reported. India demand polymers market
Domestic supplies of polymers are sufficient, and the players do not expect an improvement in the situation in December.India demand polymers market
On November 23, prices for low-pressure polyethylene film (HDPE) were on average at USD1,110 per ton, CFR India, which is USD45 per ton lower a week earlier; while prices for raffia and injection molding polypropylene (PP) fell by USD60 in the same period to USD1,130 per ton, CFR India, according to ICIS data.
The seasonal lull in the polymer sector, including PE and PP, began in India in early November, but was interrupted by a short replenishment period after the Diwali holiday – November 6, which lasts at least a week in India.
However, the situation on the market this year is aggravated by a serious shortage of cash, as banks have tightened access to credit lines.India demand polymers market
Since March 13, banks have canceled credit lines and banned the issuance of letters of commitment and letters of confirmation after a case of fraud in the amount of USD2 billion, in which the Punjab National Bank (PNB) participated.
Meanwhile, domestic supplies of PE and PP increased, as most of the enterprises are operating at almost full capacity, while exports to China and Southeast Asia declined due to weaker demand and more competition from new supplies to the US.
According to the ICIS-MRC Price Review , prices for a number of types of polyethylene continued to decline in Russia last week.
Most consumers expect a further decline in PE prices in December and, against this background, limit their purchases to current needs only. Producers of HDPE do not see reasons for price correction.India demand polymers market
In the Russian market of PP, some sellers last week attempted to once again raise the prices of propylene homopolymer (PP-homo), but in some cases, buyers refused to accept further price increases.
Author: Anna Larionova