05 September 2008 11:22 [Source: ICIS news]
By Prema Viswanathan
SINGAPORE (ICIS news)--A sharp reduction in prices and protection against further price drops offered by producers have failed to revive buying interest for polymers in India, suppliers and buyers said on Friday.
Prices of polymers were slashed by close to 6% this week in a bid to spur trade, but buyers are only purchasing enough material to meet their immediate requirements, traders said.
Prices of general purpose PS (GPPS) and high impact PS (HIPS) were slashed by Indian rupees (Rs) 4/kg ($0.09) to Rs79/kg EXW (ex-works) and Rs5/kg to $85/kg EXW.
Prices of PP and PE were reduced by Rs 2/kg and Rs1/kg respectively to Rs83.50-85.50/kg EXW. Polyvinyl chloride (PVC) prices were cut by Rs2/kg to Rs68.50/kg EXW.
Buyers were holding back from purchases in anticipation of further price drops, an Indian converter said.
August-September is traditionally the peak season for polymer demand, when end-users make their purchases for the October-November festive season.
However, this year, the peak season has been indefinitely delayed, said a polystyrene (PS) supplier.
The fall in domestic prices also dampened buying interest in imported material. The persistent weakness in crude values blunted the appetite for imported cargoes further, a Mumbai-based trader said.
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