GAIL to import HDPE, LLDPE; Catering to the rising demand likely intent

GAIL is in the process of importing HDPE and LLDPE from overseas locations, according to an advertisement by the state-run petrochemical producer on its website. The underlying intent could be viewed as an attempt of the company to cater to the excess demand for the polymers in the country to which its current production is not sufficient to cater to.Besides, the import strategy might also be implemented to cater to the demand for those grades of the polymers that are not produced in the country. As a matter of fact, certain grades, like the Metallocene and Hexane grades of LLDPE are not produced in India, despite prevalence of strong demand for these in the country. Demand these grades in the country, thus, have to be catered to through imports from countries, like Singapore, Thailand.

Rising international prices, falling INR, shortage in stocks prompt Indian producers to raise PE, PP prices

Plastic processors in India today have seen increasing raw material costs as polymer producers in the country increased their ex-work prices for PE and PP, with effect from today. The two state-run polymer producers: Indian Oil Corporation (IOC) and GAIL have hiked their respective product prices, that could be interpreted as due to the prices in the South East Asian region rising recently apart from inadequacy of stocks in the major markets in India, with active demand conditions prevailing. GAIL has raised its HDPE and LLDPE prices by Rs 1.5 a kg respectively, and IOC has hiked its HDPE and LLDPE prices by Rs 1.5 a kg respectively, and its PP price has been raised by Re 1 a kg.

Rising prices of Hexamine keeps buyers at bay in India

Hexamine prices have continuously been rising in the Mumbai market over the past three months. Indianpetrochem reviewed the price trend  for hexamine manufactured by Simalin Chemical Industries and evaluated the outlook for the chemical in the future.

No upward traversal of ABS price possible in India, demand to stay dim

ABS price is not likely to go up in India upto February 2014 end. The strong likelihood is indicated by a slew of factors, which could be considered as potential drivers of the price. Market research conducted by Indianpetrochem has revealed that demand for the engineering polymer from the appliance, automotive and air-conditioner segments were waning, resulting in traders in the major markets in the country experience inactive ABS sales.

Mumbai chemical market; weekly price synopsis

Mumbai market witnessed strong price movements for Methyl Methacrylate, Phenol, Acetone, Acetonitrile and Aniline based on various market dynamics. Indianpetrochem summarises the market movement for these chemicals and evaluates the reasons for price fluctuations, based on various market sources.

Restricted stearic acid supply from Godrej triggers price increase in India

 The price of cosmetic grade stearic acid is at all time high within six month period in New Delhi market, where the chemical sells at around Rs. 102-104 per kg . Supply disruptions from Godrej manufacturing facility in Mumbai is cited to be the main reason for the spike in price. In the interim, the demand for stearic acid has been inelastic to the upswing in prices due to strong cyclical demand from end user industries.

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Producer price hike turns Indian PVC buyers' sentiments bearish, demand softens

Demand conditions for the PVC material softened in the major polymer markets in India as bearish sentiments prevailed among buyers in the country, post producers hiking their ex-work price in the last price revisions. To compound to the bearish sentiments, purchases of PVC pipes also lessened, resulting in pipe manufacturers slowing down their raw material purchases. Traders, thus, experienced inactive PVC purchases, a deviation from the active purchases the saw prior to the producers raising their prices. 

A Mumbai-based trader told Indianpetrochem in the context of the prevailing market conditions in respect to the polymer, "Demand for PVC has weaken after Reliance Industries Limited hiking its ex-price in the last revision. The buyers' sentiments are bearish."

A PVC price manufacturer in Delhi said," Sales of PVC pipes are inactive these days, and that is contrary to what we expected."

However, demand for the polymer is going to rise by the end of this month due to the expected strengthening of demand for agricultural pipes.

Toluene market prices stable despite expensive imports

The demand for Toluene is stable in the main trading hubs within India, mainly Ahmedabad and Mumbai. As a consequence of moderate demand, traders aren't increasing the prices despite the fact that they are selling imported toluene, which is slightly more expensive than domestically manufactured goods.

Indianpetrochem spoke to a trader in Ahmedabad who shed light on the current market situation for the aromatic in Gujarat. Based on market sources, it is revealed that traders in Gujarat have limited stock supplies of Toluene manufactured by Reliance, instead, they have ample supplies of  imported Toluene. A trader shed light on this matter when they said that, " Even though the basic price of imported goods is higher than domestic products, traders prefer to keep imported stock as they have line of credit of  60 days from importers in the Middle East, etc. On the other hand Reliance doesn't offer the same line of credit to local traders and asks for cash on delivery".

Open market PP prices stay unaffected in India, post producer price hikes

PP prices have remained almost stable in the major polymer markets in India, unaffected from the recent producer price hikes. Demand conditions have been active due the ongoing manufacturing activities. Some PP end-users also revealed to Indianpetrochem that they had enough inventories of already procured PP material, so they were immune to the recent producer price hikes. A Delhi-based trader told the website in respect to the prevailing market conditions in respect to the polymer," PP off-takes are going on actively in the market, and there has been no notable change in the market price." He also said," Demand conditions are expected to strengthen in the coming days."

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Benzene prices remain stable on moderate demand

This week the demand for Benzene in Mumbai and New Delhi markets has been moderate.  In this context, a Delhi based trader told the website, "Moderate demand persists in Indian market due to low demand from buyers for the aromatic and sluggish demand for its end product". As such, market participants are adopting need based procurement strategy and are avoiding bulk purchases.

Benzene is used as a chemical intermediate for the production of many important industrials compounds such Styrene, Phenol, Cyclohexane, Alkylbenzene, Nitrobenzene, Aniline, Chlorobenzenes etc. 

Traders cite average demand for benzene because of moderate demand for the resulting chemicals in Indian market.

Reliance has the highest market share for Benzene in India. However, after talking to some big traders in Mumbai and New Delhi, Indianpetrochem found out that there is limited supply of Reliance manufactured Benzene in the market. Instead, traders in Mumbai and New Delhi have access to Benzene manufactured from other domestic players like Indian Oil Corporation Limited and Steel Authority of India (SAIL) etc, they have very limited supplies of Benzene manufactured from Reliance Indian Limited (RIL), based on market sources.

According to Chemical & Petrochemical Manufacturers' Association, in 2012, the installed capacity of Benzene in India was1,344 kilo tonne per annum, where domestic production stood at 1,150 kilo tonne per annum and imports were 50 kilo tonne per annum.

These statistics indicates that India isn't significantly dependent on imports for the aromatic.

Internationally, the prices of Benzene have surged since the beginning of 2014. In South Korea Benzene prices have consistently been increasing since the beginning of the month, till now  the prices have increased by $26 per metric tonne to current levels of $1,366 per metric tonne FOB.

On the other hand, the price of the aromatic in India has been stable due to poor market dynamics. In Mumbai and New Delhi, Benzene sells for Rs. 90 per liter.

RIL produces Benzene at Hazira, Jamnagar and Patalganga manufacturing units. Benzene manufactured from Hazira and Jamnagar has very high product purity and its well- accepted internationally. Since 2005, the purity of Benzene manufactured at Jamnagar was enhanced to the highest international standards by using the latest sulpholane extractive distillation technology, according to the company website. 

As such, it can be said that insufficient availability of benzene manufactured by Reliance in India is due to higher exports to the international market. In this light, traders apprehend that other domestic manufactures might adopt a similar strategy and sell in international prices, where the prices are higher. This might invaribaly impact the market dynamics, whereby supply shortage can trigger upward movement in prices within India. However, traders aren't sure on the timeline for this upswing in prices, as such, there is uncertanity over the price movemnt of Benzene in the near term. 

High Acrylonitrile price weakens demand in Delhi market, price remains stable

Prevalence of high Acrylonitrile price in the Delhi market has enabled only large buyers to purchase the chemical, restricting smaller buyers from purchasing it on account of cost considerations. Demand for the chemical, thus, continued to remain dull, although slight improvement was observed today on purchases by large buyers, while, small and medium-sized buyers had to wait for some moderation in the price. One of the traders in the market told Indianpetrochem, "The weak demand has resulted not only from the price being high, but also due to slowdown of the automobile industry and air-conditioner manufacturers almost stopping productions due to the winter season."
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PVC prices moved marginally in the major polymer markets in India

PVC prices moved marginally in the major polymer markets in India during the week ended on January 4, 2014. Demand conditions were active in markets on regular purchases by end-users.

During the week there was no influence of any international price movement.

Also, producers kept the price unchanged during the week.

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PP prices in the major polymer markets in India underwent marginal fluctuations

PP prices in the major polymer markets in India underwent marginal fluctuations during the week ended on January 4, 2014.  Demand conditions were active on regular off-takes of the raw material by end-users.

During the week, PP price in India were free of any price fluctuation in international regions.

Reliance Industries Limited and Indian Oil Corporation, during the week, raised their PP prices by Re 1 a kg respectively.

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No changes in PE prices in the major indian polymer markets

PE prices in the major polymer markets in India did not move significantly during the week ended on January 4, 2014.  Active demand conditions prevailed on end-users purchasing regularly to cater to their immediate production needs.

During the week, Reliance Industries Limited hiked its HDPE prices by Re 1-1.50 a kg, and LDPE, LLDPE prices by Re 1 a kg.
Indian Oil Corporation Limited raised its HDPE prices by Re 1-1.5 a kg, and LLDPE price by Re 1 a kg.

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