24-Jun-16 South Asia (India, Pakistan, etc)
PE
Local Indian PE prices remained unchanged. Oil prices fell last week amid concerns about the market supply and demand balance as production in Canada started to grow and U.S. stockpiles dropped less than expected. Ethylene value continued to decrease, dropping by US$5/mt last week. Supply was sufficient while demand in India remained muted as the monsoon season started. Demand is not expected to recover until September. However, in the third quarter the market is likely to find a support from plant turnarounds and curbing output in China ahead of the G20 Summit. Over the next couple of weeks, PE prices are likely to stay stable or decrease.
PP
Local Indian PP prices rose by INR 1/kg. Oil prices fell last week amid concerns about the market supply and demand balance as production in Canada started to grow and U.S. stockpiles dropped less than expected. Naphtha dropped by US$18/mt. Propylene value was relatively stable, falling just by US$1/mt. Supply was sufficient with domestic producers running at high rates. At the same time, deliveries from the Middle East were limited due to the start of Ramadan. Demand remained strong despite the beginning of the monsoon season. Over the next couple of weeks, PP prices are likely to stay steady.
PET
Local Indian PET prices remained unchanged. Import prices dropped by $10/mt. Oil fell last week amid concerns about the market supply and demand balance as production in Canada started to grow and U.S. stockpiles dropped less than expected. Ethylene value continued to decrease, shrinking by US$5/mt last week. MEG decreased by US$9/mt, PTA gained US$3/mt while PX fell by US$21/mt. Supply remained a bit limited after Reliance plant shutdown in Dahej due to water shortage. Demand remained flat. Over the next couple of weeks, PET prices are likely to stay steady or decrease.
PVC
Local Indian PVC prices remained unchanged. Oil fell last week amid concerns about the market supply and demand balance as production in Canada started to grow and U.S. stockpiles dropped less than expected. Ethylene value continued to decrease, shrinking by US$5/mt last week. EDC rose by US$15/mt while VCM jumped by US$65/mt. Supply was quite tight as some PVC plants in Asia are due to be shut for annual maintenance. Demand in India remained soft as the monsoon season started. The market is not expected to recover until September. In July, PVC prices are likely to decrease.
Demand (Economic & Market News)
India Ratings and Research has revised its FY17 estimate for the country’s current account deficit (CAD) to 1.31.5% of GDP from 1.2% due to lower remittances and lower software earnings in fourth quarter for the current fiscal. India’s CAD narrowed sharply to US$0.3 billion or 0.1% of GDP in fourth quarter of FY16 from US$7.1 billion or 1.3% in third quarter on account of lower trade gap. For the entire 2015-16 fiscal, CAD - the difference between the inflow and outflow of foreign exchange shrank to 1.1% of the GDP. Remittances or private transfers declined to US$63.1 billion in 2015-16, from US$65.5 bln in 2014-15.
Services exports declined to US$69.7 billion in 2015-16 from US$76.5 billion in 2014-15.
Source Courtesy: polymers.io in association with Allied Solutions India Pvt Ltd
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