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(Plastemart) --Indian polymer
producers have announced price reductions in polypropylene (PP) and polyethylene (PE), as imports grow amid low domestic
demand. Demand is low because during the festive season of Diwali, converters
run plants at reduced capacity.
This trend is contrary to the rising petrochemical prices globally. In
the global markets, as crude oil prices rise, polypropylene (PP) price has risen
by US$30, and polyethylene (PE) prices have gone up by US$50 compared to
previous month’s price amid supply constraints caused by maintenance shutdowns.
This is the first time since May that prices have been reduced in India by
producers.
Uptil now, Indian polymer producers kept prices very high despite falling
crude and global polymer price. Even with the current price reductions, polymer
prices in India are still not at par with global levels. As newer capacities
come onstream in India, pricing of polymers will be critical. The Indian market
is slightly oversupplied due to expected added capacities and rise in imports as
other regions face dwindling demand.
mrcplast.com
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