Indian trucker strike ended, local demand set to revive

After eight consecutive days of the nationwide strike, Indian truckers returned to normal operation after reaching a concession with the government to cut levies on diesel fuel. The strike has caused a major disruption in delivery of all goods throughout the country, forcing plants to shut down due to lack of storage and raw materials. 

Indian players are expecting better market sentiment in August as converters are returning to make replenishment. “Inventories at manufacturers’ warehouses are critically low. The need to stock is imminent,” a local producer said. 

The near-term outlook is rather positive and it appears that traders here are also exciting about demand prospect in August despite many PE businesses have run into difficulties since the Indian government imposed heavy plastic bans.

“Buyers would be more encouraged to make new purchases following the latest price cuts from major domestic producers. Business for other materials is ok, but HDPE and LLDPE film has been hit very badly,” another trader commented.