Hike attempts for import PP, PE defy lower domestic prices in India, Turkey



9/23/2021 2:26:41 PM  ۰ Comment   ۳۶۳ Hits

Hike attempts for import PP, PE defy lower domestic prices in India, Turkey

Middle Eastern suppliers have attempted increases in their October PP and PE prices both to India and Turkey, as a part of their global pricing strategy. However, domestic producers in both countries have issued price decreases for the two products as of the first trading day of October, defying these hike attempts in the import markets.

In India, domestic producers cut their offers for PP injection and film as well as HDPE film, HDPE injection, LDPE film and LLDPE film, according to distributors and converters in the country. The domestic PP market has seen decreases of up to INR2000/ton ($38/ton) while the PE market has been adjusted lower by INR2000-3000/ton ($38-56/ton) from last week.

“The downward adjustments are made due to the appreciation of the local currency,” commented a distributor. Another distributor blamed poor demand for the local decreases.

On the contrary, import offers have already been revealed higher to the country. A packaging manufacturer reported, “Import offers for PP and PE have firmed up for October whereas we have received lower offers from domestic producers as of this week. Overall demand remains slow, although it may pick up towards the middle of October due to the upcoming Diwali festival, which is one of the major events in India.”

Another packaging manufacturer also reported higher import offers for PP and PE, commenting “The LLDPE offer we have received is too high to accept, although Middle Eastern cargoes are offered only for limited tonnages.” He added, “Demand is yet to improve in the domestic market and it is so difficult to cast an opinion about the market outlook in October given the opposing directions of import and domestic markets.”

When looking at the Turkish market, a similar picture is drawn. It was early last week, when a major Middle Eastern producer revealed its October LLDPE offers with increases; however, a packaging buyer reported concluding a deal for this material with discounts from the initial offers later in the week. Several suppliers from other Middle Eastern countries have also approached the Turkish market with price requests ranging from rollovers to slight increases this week for PP and PE.

However, Petkim entered the month of October with price decreases of $15/ton for its homo PP, LDPE film, HDPE injection and blow moulding offers. The producer’s decision weakened the sentiment in the distribution market, where an immediate reflection has been seen in pricing.

A sack manufacturer who also received higher import PP offers said, “Major suppliers are asking for modest increases for October in the import market; however, they may step back from these levels later.” Even though there is market talk that a Saudi Arabian major will have limited allocation for this month, most buyers prefer to wait for a while amidst growing expectations about seeing softer prices in the import market.

Source: ChemOrbis

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