31 October 2013 17:29 [Source: ICIS news]
SINGAPORE (ICIS)--Demand for polyethylene (PE) and polypropylene (PP) in India is likely to be uncertain after the Hindu festival of Diwali in early November, regional market players said on Thursday.
“We are really not sure where the market would head to after Diwali. It has softened but buyers need to get material at some point. But we don’t really know what will happen,” a Mumbai trader said.
Demand for most PE and PP grades was soft for the majority of October due to bearish buying sentiment and soft downstream demand.
“No buying took place in October because of bearishness. Downstream activity is also weak, so we are not sure. The strengthening rupee is not helping to boost buying,” said a separate Mumbai-based trader.
Indian end-users mainly purchase PE and PP from the Middle East and southeast Asia.
Such producers said they do not look to India to sell material, preferring to export to China, where margins are more significant.
“We can make more in China. In India, everything is so uncertain, we rather trade where we know what will happen next,” a Middle East PE producer said.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections