Indian players: Import PP demand remains healthy, sustainability in question

Unlike other Asian market, demand for homo-PP in India remains relatively healthy over the past couple of weeks, which attracted great attention from international suppliers. Several sellers opted to divert their cargoes to India as demand in China and Southeast Asia hold sluggish condition.

A Saudi Arabia producer offered homo-PP yarn and injection at $1110/ton CIF India, LC AS term informed, “We managed to conclude some deals at $1095/ton with the same term. Despite good demand, buyers here are not willing to accept prices above the $1100/ton threshold yet.”

Meanwhile, domestic traders are concurring that buying interest for PP is much better than other grades given tight local availability amid on going maintenance shutdown. However, the trend might not be sustainable with a market source added, “India is traditionally a net exporter of PP, therefore we think the recent rally might soon loose momentum once buyers made sufficient purchases.”

Another buyer added, “We only accept import cargoes at up to $1080/ton levels. The recent increase is fueled by supply-demand gap and market might start to slow down soon. At the moment, we prefer to wait and see.”