International price movement lifts Indian VAM price to all time high; future outlook uncertain

This week the price of VAM (Vinyl Acetate Monomer) in domestic markets have spiked based on international price trend. India is completely import dependent to fulfill its demand for the chemical , which is mainly used in adhesives and manufacturing other chemical intermediaries. Indianpetrochem surveyed the market sentiment for the chemical and tried to understand if this price hike is timed well to the country.

PVC price to stay steady, amid weak demand and high feedstock costs

PVC prices in India are not likely to go up or down in the coming days, but remain stable. Despite prevalence of sluggish demand conditions, the price is not likely to decline as high feedstock costs are constraining the producers in the country to restrain from lowering the price. Demand for the polymer has continued to remain sluggish as sales of agricultural pipes, the predominant PVC end-industry, continued to be inactive. Manufacturers of such pipes have, thus, curtailed their factory operating rates, resulting in weakening of PVC demand in the country.

Toluene price in India not to be impacted on international market cues

Booking prices for Toluene from Korea approximately dropped by $20 per tonne to levels of $1,085 per tonne FOB, within the past 2 days. The demand for Toluene has more or less been stable in India, given the widespread application of the aromatic, while the market price has been trading at lower levels since the beginning of the month. Indianpetrochem reviewed the current market situation and spoke to some traders who shed light on this matter.

Will removal of Anti-Dumping Duty on PVC imports from Asia and US lower the price in India?

The Government of India has removed Anti-Dumping Duty on imports of PVC of Asian and US origins, as learnt from a secondary source. Following which, Formosa Petrochemical Corporation, based in Taiwan, lowered its PVC offer to India for shipment in March 2014 by $20 per metric tonne, to $1,070 per metric tonne CIF. And, it seems that the other prominent PVC exporter to India in the Asian region, South Korea-based Hanwha Chemical Corporation, is also likely to lower its PVC offer to India, at $1,100 CIF, for shipment in the next month. While, the other South Korean producer, LG Chemical Corporation, is not yet heard to announce its latest PVC offer. But, the moot question is: will price of the polymer decline in India as a result of the removal of the duty, and the subsequent decrement, and the possible reduction of international PVC offers to the country? The answer is most likely in the negative.

Slowing PP demand conditions rule out any possible price rise in Indian markets

Slowing down of end-users has resulted in demand for the PP material weakening in the major polymer markets in India. Traders in several polymer markets in the country have told Indianpetrochem that they experienced weak PP sales, attributing to slowing down of end-user industries in addition to high cost of the raw material. 

Shortages of HDPE grades prevail in Indian markets, prices likely to inflate

Prices of some grades of the HDPE material in Indian polymer markets are likely to rise in the coming days due to the prevailing shortages. Several traders in the major markets in the country told Indianpetrochem that grades of the HDPE material, like Blow Moulding (of GAIL), Injection Moulding (of Reliance Industries Limited) and Film (of Indian Oil Corporation), were in shortage due to non-receipt of supplies from the producers. Demand for the grades were also active moderately, they said.

Sluggish demand, falling feedstock price likely to lower PS price in India

Sluggish demand conditions for PS have insulated the price for the polymer from any upward movements in polymer markets in India. Demand for the Styrene-based polymer has been in dull during the last few days, primarily on account of end-user industries slowing down, leading to lessening off-takes. A Delhi-based trader told Indianpetrochem in the context," Sales of PS are weak as end-user industries are slowing." He further said," There is no prospect for PS price going up. The price is most likely to go down."

Phenol prices dim on account of inactive market conditions

The demand for phenol has been weak this week while the market price for the chemical has been trading at a lower range since the beginning of this month in Mumbai . Indianpetrochem reviewed the current market scenario and spoke to some traders to get a comprehensive view on this matter.

ABS demand sluggish in India, prices are almost stable

There is moderate demand for Acrylonitrile Butadiene Styrene (ABS) resin in the Mumbai Market, and the price for the engineering plastic has more or less been stagnant since the beginning of the year. Indianpetrochem spoke to some traders to take stock of the current situation for the polymer in India.

HDPE demand moderate despite high prices

HDPE (High Density Polyethylene) prices in Mumbai gained upward momentum this week in Mumbai market based on short supply of imports and domestic products. Despite this price hike, the demand for the polymer has been steady this week due to the wide scale application of HDPE. Indianpetrochem took a quick review of the current market situation for the polymer after consulting few traders in Mumbai.