02 September 2011 07:03 [Source: ICIS news]
By Ong Sheau Ling
SINGAPORE (ICIS)--Indian converters are refraining from buying imported polyethylene (PE) and polypropylene (PP) given ample domestic supply, and amid congestions at ports that are delaying shipments of polyolefins into the country from abroad, industry sources said on Friday.
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Discussion levels for September PE and PP parcels slipped by as much as $10/tonne (€7/tonne) from last week, and down by $40-80/tonne or 2.5-4.4% from early August, market sources said.
“Looking at the current and forward month supply-demand fundamentals, achiev[ing] price stability may not be as easy after all,” a large-sized Mumbai-based converter said.
Indian converters have not been importing as much raw materials as they used to, partly because of adequate domestic supply.
Concerns about possible delays in shipments, arising from port congestions in Dammam port in
Some overseas producers have reduced their offers for September PE and PP cargoes this week, after failing to conclude deals over the past two weeks, local traders and converters said.
A few Middle Eastern cargoes for high density polyethylene (HDPE) were transacted at $1,380-1,385/tonne CFR (cost and freight) Mumbai), down by about $30/tonne from the original offers last week, market sources said.
For low density PE (LDPE) film cargoes for September, offers from
A Saudi major and a global major, however, are holding firm to their September offers for linear low density PE (LLDPE) film and HDPE film at $1,440/tonne CFR Mumbai, citing firm crude prices.
A local distributor in
“We don’t foresee further price declines for the PE film grades,” he said.
Some market players are hoping that demand will improve soon.
“Demand for non-woven sacks in cement and agriculture packaging should pick up after the monsoon ends in September. So, converters have to slowly stock up now [for PP raffia],” said a Mumbai-based trader.
Domestic polymer producers in India have kept their list prices for PE and PP unchanged, despite declines in spot values, pinning their hopes on better demand going forward, market sources said.
Local converters, however, doubt a strong recovery in demand given expectations of monetary policy tightening in
($1 = €0.70)
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