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Gradual demand recovery coupled with higher input costs, support price gains in PP and PE

Petrochemical industry | 04 Jun 2020 09:30 IST | Polymerupdate.com

According to a Polymeurpdate reporter processing units across India were gradually beginning to start up .

The reporter said, “ I have randomly connected with well over 25 factory owners and most of them have confirmed restarting their units.

However, many of them continue to face labour issues as a result of which they are operating at reduced capacities of between 40% and 60% rates. While a few have raw material inventory from March, including of PP and PE, others are in the market seeking to rebuild on their stock. Local prices of PP and PE have firmed and are being supported by higher polymer prices in the rest of Asia coupled with strength in upstream energy, naphtha and olefin costs.”

He added, “ there is robust demand seen in PP raffia, BOPP, fibre, film and injection grades. Demand for PPCP remains dull. Sellers in the open markets are also seeing good demand in HDPE raffia, film and blow moulding grades although demand for HDPE injection remains weak.

Buying inquiries are plentiful for LLDPE film and for LD film grades while sellers of LDPE milk pouch and lamination are also reporting a smooth flow in buyer inquiries.”

While commenting on resin producer pricing trends the reporter said, “ offers to India from overseas producers, for June shipments for PP and PE are up, while Indian resin producers have hiked their export offers to China, Sri Lanka, Bangladesh, Vietnam and other export markets. As global markets gradually begin to re-open, we anticipate pricing trends will continue to remain upward in the near term. There are worries about what will happen if a second Covid wave hits the world.

For the moment however, this isn’t impacting prices negatively in anyway. ”
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