26 July 2013 03:43 [Source: ICIS news]
SINGAPORE (ICIS)--Two Saudi producers have temporarily stopped offering polypropylene (PP) into India over the past few weeks due to the weakening value of the rupee, Mumbai and Bangalore-based traders said on Friday.
A weak rupee makes imported material more expensive.
“They are worried about offering into India because no one will buy imports when the rupee is weak,” said a Mumbai-based trader.
It remains uncertain whether the two Saudi producers will offer into India again should the rupee strengthen against the US dollar, the trader added.
Should weak demand persists, other Middle East producers may be forced to lower prices for August and September cargoes, or offer the material elsewhere in the region.
“There continues to be a lack of direction in the PP market in India, and other Middle East producers may be forced to offer material elsewhere,” said another India-based trader.
PP remains in oversupply in India, and Indian suppliers hold on to high volumes for most PP grades, according to the same trader.
PP raffia/injection prices in India were softer by $5-10/tonne (€3.75-7.50/tonne) at $1,460-1,480/tonne CFR (cost & freight) India for the week ended 19 July.
($1 = €0.75)
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