Muted Demand and Maintenance Shutdowns Weigh on LLDPE Market Outlook

Price

• PP Raffia: (±0 Rs) 94/kg levels Ex-Godown.
• PP Film: Rs. 100/kg levels Ex-Godown.
• PP CP: (±0) Rs. 99.75/kg levels Ex-Godown.
• PP Lamination: (±0) Rs. 104.25/kg levels Ex-Godown.
• LLDPE: (-0.5) Rs. 86.5/kg Ex-Mundra/Bhiwandi.
• LDPE: (±0) Rs. 118/kg Ex-Mundra/Bhiwandi.
• HDPE PE100 Natural: (±0) Rs. 92/kg Ex-Mundra/Bhiwandi.
• HDPE PE100 Black: (±0) Rs. 93/kg Ex-Mundra/Bhiwandi.
• HDPE HM: (-0.5) Rs. 92/kg Ex-Mundra/Bhiwandi.
• HD Blow Molding: (±0) Rs. 91/kg Ex-Mundra/Bhiwandi.
• Low K (P700/TH700) (+1.5) Rs 81.50 Ex Nhava Sheva/Mundra
• LG LS100H (+0) Rs 75.75 Ex Mundra/Bhiwandi

Demand and Supply

• In Southeast Asia's LLDPE market, import transactions across major regional markets remained subdued, with deals and offers shaping the basis for import price assessments.
• In contrast, the market situation in Vietnam was more active, with negotiations occurring within the assessed price ranges.
• Towards the end of the week, deals were finalized at the lower end of the spectrum as an oversupply of competitively-priced products pressured prices, causing a notable pricing disparity between Vietnam and other Southeast Asian markets.

News

• FCFC is restarting its PX Plant after maintenance work. The plant is located in Lungder, Taiwan.
• Hanwha Chemical is set to shut its Polyvinyl Chloride (PVC) plants on 26th August 2024 for maintenance work until 9th September 2024. The plants are located in South Korea.
• Ningbo Formosa is set to shut its Suspension Polyvinyl Chloride (S-PVC) Plant on 26th August 2024 for planned maintenance work until 4th September 2024. The plant is located in Ningbo, China.
• IOCL from India offered its products for the Nepal market: PP Injection/Raffia at US$ 1020/MT, PP Non-woven/Lamination at US$ 1080/MT, HD Injection at US$ 980/MT, HD Raffia at US$ 1020/MT, HD Pipe at US$ 1025/MT, LLDPE Film at US$ 1000/MT, LLDPE Roto at US$ 1020/MT, LC at sight basis for September 2024 delivery.
• Dongying Weilian Chemical is planning to shut its PX Unit in September 2024 for maintenance work. The unit is located in Dongying, China.

Expert's Opinion

It is expected that converters will continue to struggle with accumulating finished product inventories due to weak demand sentiments. Buyers are likely to make only need-based purchases, driven by a pessimistic market outlook.