Conventionally, the months of August and September form part of the peak demand season for PP and PE in India. Interestingly, buying sentiments this year have been to the contrary, notwithstanding a further price reduction by producers as well as protection against further price drops offered by producers. Two down adjustments in PP prices in one single week have failed to revive buying interest.
The major factors contributing to lacklustre market sentiments and maintaining a gloomy market outlook are falling crude and feedstock values coupled with limp demand from China that has further lowered seller offers. Demand from China is not expected to pick up until the close of the Olympic Games on production and transportation curbs by the Government- hence buyers in other parts of Asia prefer to wait and watch in anticipation of a further price dip. Despite low inventory levels, end users prefer to defer buying, as suppliers from Asia are diverting cargoes meant for China towards India at a further price reduction.
14-Aug-08 
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