SINGAPORE--Buying interest in polypropylene (PP) and polyethylene (PE) continues to weaken despite a sharp reduction in prices and protection against further price drops offered by producers in India, suppliers and buyers said on Wednesday.
"We are not receiving any enquiries for PP cargoes despite slashing prices by more than 3% for the second time in a week," a local PP producer said. "And this is despite the fact that August-September is the peak season for polyolefins demand."
A lack of buying interest in Pakistan a key export market for Indian PP producers has raised further concerns among suppliers.
"We have not made any offers for the last couple of weeks into Pakistan, as trade has come to a standstill there," said an Indian supplier.
A global polyolefins supplier to India echoed the same views. "We have brought down our offers by $80/tonne in the course of one week, to $1,950/tonne CFR (cost and freight) India, but buyers are still not expressing interest," it said.
Buyers had retreated to the sidelines in anticipation of a further decline in prices, as sentiment was weak due to falling crude and a weak Chinese market, a PE trader said.
The emergence of low offers from Asian PE suppliers also contributed to the weak sentiment in India, traders said.
"Asian HDPE film suppliers are diverting their cargoes from China to India, due to poor Chinese demand," a New Delhi-based trader said. Asian cargoes of HDPE film were heard sold at $1,850/tonne CFR India, $50/tonne lower than offers from the Middle East, he added.
End users said inventories were low for all grades of PP and some grades of PE. "However, having already burnt my fingers by buying several hundred tonnes when prices were skyrocketing, I am now waiting until prices bottom out," said a PP converter.
Indian polyolefins markets were thrown into turmoil last week as domestic producers slashed prices by more than 3% for the second time in a week in a desperate bid to boost demand.
The fall in domestic prices also dampened buying interest in imported material. The persistent weakness in crude values blunted the appetite for imported cargoes further, a Mumbai-based trader said.
Prices of imported PP raffia and injection grades fell by $50-80/tonne week on week last Friday to $1,950-2,000/tonne CFR India, while prices of HDPE film were down $20-40/tonne at $1,850-1,910/tonne CFR India, according to global chemicals market intelligence service, ICIS pricing.
Major polyolefins producers in India include Reliance Industries, Haldia Petrochemicals Ltd and GAIL India. Key suppliers of PE and PP into India include ExxonMobil, Basell, EQUATE, Saudi Basic Industries Corp (SABIC) and Qatar Petrochemical Co (Qapco).
"We are not receiving any enquiries for PP cargoes despite slashing prices by more than 3% for the second time in a week," a local PP producer said. "And this is despite the fact that August-September is the peak season for polyolefins demand."
A lack of buying interest in Pakistan a key export market for Indian PP producers has raised further concerns among suppliers.
"We have not made any offers for the last couple of weeks into Pakistan, as trade has come to a standstill there," said an Indian supplier.
A global polyolefins supplier to India echoed the same views. "We have brought down our offers by $80/tonne in the course of one week, to $1,950/tonne CFR (cost and freight) India, but buyers are still not expressing interest," it said.
Buyers had retreated to the sidelines in anticipation of a further decline in prices, as sentiment was weak due to falling crude and a weak Chinese market, a PE trader said.
The emergence of low offers from Asian PE suppliers also contributed to the weak sentiment in India, traders said.
"Asian HDPE film suppliers are diverting their cargoes from China to India, due to poor Chinese demand," a New Delhi-based trader said. Asian cargoes of HDPE film were heard sold at $1,850/tonne CFR India, $50/tonne lower than offers from the Middle East, he added.
End users said inventories were low for all grades of PP and some grades of PE. "However, having already burnt my fingers by buying several hundred tonnes when prices were skyrocketing, I am now waiting until prices bottom out," said a PP converter.
Indian polyolefins markets were thrown into turmoil last week as domestic producers slashed prices by more than 3% for the second time in a week in a desperate bid to boost demand.
The fall in domestic prices also dampened buying interest in imported material. The persistent weakness in crude values blunted the appetite for imported cargoes further, a Mumbai-based trader said.
Prices of imported PP raffia and injection grades fell by $50-80/tonne week on week last Friday to $1,950-2,000/tonne CFR India, while prices of HDPE film were down $20-40/tonne at $1,850-1,910/tonne CFR India, according to global chemicals market intelligence service, ICIS pricing.
Major polyolefins producers in India include Reliance Industries, Haldia Petrochemicals Ltd and GAIL India. Key suppliers of PE and PP into India include ExxonMobil, Basell, EQUATE, Saudi Basic Industries Corp (SABIC) and Qatar Petrochemical Co (Qapco).
