Indian polymer markets remain sluggish after producer price cuts

Oct 04: Appreciating INR and lowering of the customs exchange rate for imports seem to influence polymer buyers in the country of a possibility of further price cuts by Indian producers. Most buyers adopted a wait-and-watch mode in the prospect of producers in the country further lowering polymer prices in their next price revisions. Traders in the major markets in the country thus continued to see lackluster demand conditions. A trader in the Delhi market told Indianpetrochem in the context of the prevailing market conditions," There is no improvement in demand conditions in the market even after the recent producer price cuts. But, taking into account the seasonal demand conditions, I am hopeful of demand strengthening by the end of the next week." 

The Government of India has lowered the customs exchange rate for imports to Rs 62.55 per USD, and the INR also has been appreciating from the remarkably depreciated levels. The INR was, today, valued at 61.73 against the USD.

If the INR appreciates further, landed costs of polymers will go down, which will also prompt producers in the country to further lower their prices. 
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