Domestic producer slashed PP, PE, PVC offers in India, price protection withdrawn

A key domestic producer in India has opened fresh offers for PP, PE, and PVC for December delivery with large reductions compared to the previous price announcement on the back of the sluggish demand condition. All previous price protection schemes have been withdrawn.

There have been reports that the woven-bag sector is facing intense competition, which erode manufacturers’ profit margins throughout the year. “The reductions in raw material prices are well expected. Even at the current levels, buying interest remains thin. We think there are still rooms for another round of sharp decline,” a woven bag converter commented.  

Meanwhile, Indian customers expect the large reductions in the local PVC market to pressure international sellers to cut January shipment offers. Buyers are mostly on the wait-and-see at the moment.