Sentiment firmer after Diwali holidays in India's polymer markets

Sentiment firmer after Diwali holidays in India’s polymer markets

11-Nov-11

Buying interest in India is reported to have picked up somewhat following theend of October Diwali holidays, as per ChemOrbis. Domestic producers lifted their prices for PP, HDPE and LLDPE this week while players in the PVC market report firmer import prices this week. The demand outlook remains mixed as several converters and distributors continued to complain about lackluster demand, although most players feel that sentiment is firmer these days in line with firming regional trends as well as higher energy prices. In the PE market, distributors report that domestic producers lifted HDPE and LLDPE prices this week, largely erasing the decreases announced on local prices at the start of November. Domestic producers commented that they are seeing better demand from the local market these days as the number of inquiries they received from the customers has increased recently. Producers claimed that they have are beginning to receive new orders from their customers while traders reported seeing brisk trading activity in the import market for both HDPE and LLDPE film. Traders commented that HDPE film supplies are relatively limited inside India for the present. In the PP market, a converter manufacturing plastic sheets reported to have purchased some material to cover monthly needs shortly before the most recent increases announced by domestic producers. The converter predicted that local PP prices would track a firm trend for the remainder of the month in line with strengthening regional markets, as per ChemOrbis. Distributors commented that local PP prices are currently trading close to par with their late October levels after domestic producers’ most recent price hikes cancelled out the price decreases announced earlier this month. Although domestic PVC prices were left unchanged on the week, import offers for both American cargoes and for origins not subject to anti-dumping duty gained ground week over week. Several distributors said that they are currently searching the market for attractively-priced import materials as they want to replenish their stocks in anticipation of seeing better demand in the months ahead. A Taiwanese producer expressed their December sell ideas to the country with increases from their most recent November price levels, commenting that they are hopeful that they will be able to achieve better sales next month, as buying interest is starting to pick up inside India.