17 June 2013 17:32 [Source: ICIS news]
MUMBAI (ICIS)--Expected new polypropylene (PP) material from ExxonMobil’s plant in Singapore may depress prices in India but its exact impact is still too early to gauge, Indian market sources said on Monday.
“There is already an excess of PP in India. If more material comes in, prices may be depressed in the coming months,” a Mumbai-based trader said.
The 500,000 tonne/year PP plant is due to begin full operations anytime, another market source said, adding that no detailed timeline had been revealed by ExxonMobil.
A Mumbai-based market player said a lot depends on whether China can absorb the new supplies.
“The capacity [additions] are substantial. China may or not be able to buy. If China can buy, the material will not come to India. That remains to be seen,” the market player added.
The ExxonMobil facility includes new oxo-alcohol and transalkylation units; two 650,000 tonne/year PE units; a 300,000 tonne/year metallocene elastomers unit; and an aromatics extraction unit.
Additional reporting by Malini Hariharan
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