Increased PE Demand and New Incentive Schemes Amid Crude Oil Price Drop
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LLDPE (-0.5) Rs 87.5/kg Ex Mundra/Bhiwandi. LDPE prices are around (±0) Rs 116/kg Ex Mundra/Bhiwandi. HDPE PE100 natural (±0) Rs 92/kg Ex Mundra/Bhiwandi. HDPE PE100 black (±0) Rs 92.5/kg Ex Mundra/Bhiwandi. HDPE HM (-1) Rs 92/kg Ex Mundra/Bhiwandi. HD Blow Molding (±0) Rs 91/kg Ex Mundra/Bhiwandi.
Polymer Price
- PP Raffia (-0.75) Rs 93.75/kg levels Ex Godown
- PP film (±0) Rs 100.50/kg levels Ex Godown
- PPCP (±0) Rs 100.25/kg levels Ex Godown
- PP Lamination (±0) Rs 105/kg levels Ex Godown
- LLDPE (-0.5) Rs 87.5/kg Ex Mundra/Bhiwandi
- LDPE prices are around (±0) Rs 116/kg Ex Mundra/Bhiwandi
- HDPE PE100 natural (±0) Rs 92/kg Ex Mundra/Bhiwandi
- HDPE PE100 black (±0) Rs 92.5/kg Ex Mundra/Bhiwandi
- HDPE HM (-1) Rs 92/kg Ex Mundra/Bhiwandi
- HD Blow Molding (±0) Rs 91/kg Ex Mundra/Bhiwandi
- Low K (P700/TH700) (+0) Rs 85.25 Ex Nhava Sheva/Mundra
- LG LS100H (+0) Rs 77.00 Ex Mundra/Bhiwandi
Polymer Demand and Supply
- Last week, market order flow showed a modest improvement. However, a sharp 12% decline in crude oil prices impacted overall market sentiment, leading to increased buyer caution.
- In response to the softened market conditions, domestic converters rolled out new incentive schemes to encourage purchasing activity this month.
- On the supply front, HMEL has reportedly resumed operations at its plant, with plans to begin mLLDPE production.
- Meanwhile, the shutdown of Reliance’s LDPE plant has resulted in a spike in demand for LDPE general-purpose grades, though fractional MFI demand remains subdued, likely due to the ongoing monsoon season.
- As HMEL’s operations stabilize, LLDPE demand and supply are expected to balance out. In the HDPE pipe segment, demand is forecasted to rebound once the monsoon period ends.
Polymer News
- Dow is planning to shut its Linear Low-Density Polyethylene (LLDPE) plant on 13th September 2024 for maintenance work. The plant is located in Terneuzen, Netherlands.
- Taiwan Styrene Monomer Co (TSMC) is planning to maintain high operating rates at its No.1 Styrene Monomer (SM) Line in September 2024. The line is located in Lin Yuan, Taiwan.
- Brent crude oil prices traded higher at USD 72.28 per barrel.
- Naphtha prices were assessed higher at US$ 645 per MT on a CFR Japan basis.
Expert Opinion
It is expected that domestic converters will introduce incentive schemes for the month in response to current market conditions. PVC converters are anticipated to resume selective bookings following the BIS extension, with a focus on quick shipments due to potential anti-dumping measures from China.
Daily Market Report
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