PE demand likely to rise in Indian markets on off-takes from the packaging sector

Oct 10: Demand for PE could be expected to soon strengthen in Indian markets, if the ongoing manufacturing activities of the packaging units are considered as strong indications. The PE bag manufacturers, contacted by Indianpetrochem, told that they were carrying out active manufacturing in their units, and they will not curtail their production volumes in the coming days. The production schedules clearly indicated that requirement for PE in the manufacturing units will not only remain intact but also likely to rise, and that will necessitate active PE purchases in the coming days. Polymer traders are thus likely to see strengthening of PE demand gradually. 

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Para Xylene sales remain inactive in the Delhi market on high price

Oct 10: High price of Para Xylene continued to keep most buyers away from purchasing the aromatic that resulted in traders in the Delhi market continue to see lackluster conditions. Despite appreciations of the INR, there had been no moderation in Para Xylene price in the market. Para Xylene was sold in the Delhi market today at around Rs 116 a litre. 
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Sluggish conditions continue to prevail in Indian polymer markets

Oct 08: Sluggish conditions continue to prevail in Indian polymer markets, with most traders expecting polymer sales to gain momentum within this month. A Mumbai-based trader told Indianpetrochem, "There is no improvement in demand conditions in the market, but polymer sales are expected to gain momentum within the next few days." 
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PVC demand likely to strengthen soon

Oct 08: Demand for PVC is expected to strengthen in Indian markets by the second half of this month, with the rainy season coming to an end. A trader in the Mumbai market told Indianpetrochem," Demand for PVC is still dull, but the demand is likely to pick up after 8-10 days, after the rainy season getting completely over." PVC was sold today in the Mumbai market at Rs 83 a kg. 

Normally, demand for PVC strengthens after the rainy season, when manufacturing activities gains momentum.

The latest international PVC offer to India was heard at $1,060 per metric tonne CIF. 
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Strong MEG,DEG demand prevails in Indian markets

Oct 08: Traders in the Mumbai market were considering booking MEG and DEG imports with the INR appreciating gradually. The INR, today, was valued at 61.79 against the USD. Traders in the market also saw active off-takes for the chemicals by diverse industries. MEG and DEG were sold today in the Mumbai market at around Rs 88 a litre and Rs 90 a litre respectively.

Traders in the market also revealed to Indianpetrochem that stocks of the chemicals were enough to cater to the demand prevailing in the market.

A similar market condition was also reported from the Delhi market. 
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Softening Styrene price in Asia indicates likelihood of PS price moderating in India

Oct 07: Falling Styrene price in Asia triggered expectation among market participants in India of prospect of PS prices declining in the coming days. Several buyers as well as traders in the country, with whom their sentiments were discussed, said that they expected PS prices to decline as price of the principal feedstock--Styrene--had been going down in Asia. Traders in the major markets in the country saw sluggish demand conditions for GPPS and HIPS as most buyers seem to postpone their purchases in the prospect of an imminent price fall. 

Describing the prevailing market conditions, a trader in the Mumbai market told Indianpetrochem," Demand for GPPS and HIPS is lackluster in the market, and many buyers seem to expect prices of the polymers to fall in the coming days."

A Delhi-based HIPS item manufacturer said that he experienced weak demand for his end-products.

Styrene price in South Korea--a key market in Asia--was reported to move down continuously during the preceding days. On October 4, 2013, Styrene price in the South Korean region was reported at $1,714.50 per metric tonne FOB, which was lower than the price reported on September 27, 2013, at $1,755.50 per metric tonne FOB.
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Benzene, Toluene demand strengthens in Mumbai market

Oct 07: Demand for Benzene and Toluene is picking up in the Mumbai market, according to traders in the market. Benzene and Toluene were sold today in the Mumbai market at around Rs 90 a litre and Rs 85 a litre respectively. A trader in the market told Indianpetrochem," Benzene and Toluene are used in many industries on a regular basis, so demand has to strengthen, regardless of high prices."  

Many traders also considered booking Toluene imports from overseas with the INR appreciating gradually. Besides, there was no supply disruption in the market, and ample stocks were available with traders in the market.

The prevailing atmosphere in the market also indicated that sales of the aromatics will strengthen substantially in the days to come.
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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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Strong LAB demand prevails in Indian markets on active off-takes by detergent industry

Oct 04: Strong demand for Linear Alkyl Benzene (LAB) prevailed in the major Indian markets, primarily due to active off-takes by the detergent manufacturers. As a matter of fact, the detergent industry is the major user of LAB, which is also used as a solvent and binder in the production of cable oil, ink, paint and insulation materials. In the Delhi market today, LAB was sold at around Rs 150-155 per litre.

An official of Tamil Nadu Petroproducts Limited told Indianpetrochem, "Due to prevalence of strong demand in India, LAB is predominantly imported from the Middle East. Big buyers normally prefer importing it rather than purchasing domestically as price of imported LAB is lower." He further said," Buyers' preference for imported LAB is resulting in Indian LAB producers facing losses."

The current LAB production capacities of Tamil Nadu Petroproducts Limited and Indian Oil Corporation Limited are at 120 kilo tonne per annum and 115 kilo tonne per annum respectively. And, every year, at least one lakh tonne is imported into India. Besides, demand for LAB in India is estimated to rise by 5-6% in the next year.

Traders in the Delhi market also revealed to the website that there was no supply disruption in the market, and ample LAB stocks were available with traders. 
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Softening Styrene price invigorates demand in Mumbai market

Oct 03: Softening Styrene price has triggered strengthening of demand for the chemical in the Mumbai market. A trader in the Mumbai market told Indianpetrochem," Demand for Styrene is rising as the price is declining." He also said,"Styrene is used as a key ingredient in producing several products, hence buyers have started purchasing with the price moving down." Styrene was sold in the Mumbai market today at around Rs 124-128 a litre. 
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Producer price reductions might trigger market demand in the coming days

Oct 01: The price reductions today by polymer producers in India were as expected by many market participants during the preceding days. Most of the traders and buyers in the country during the last few days told Indianpetrochem that they expected producers in the country to lower their prices further, in the prospect of which many buyers postponed their raw material purchase schedules. In the major markets in the country today, demand, however, continued to remain lackluster despite the producer price reductions. But, traders in the major markets in the country became optimistic of demand strengthening in the coming days. 
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Weak C9 demand conditions continue to prevail in Mumbai on price remaining high

Oct 01: Prevalence of high C9 price in the Mumbai market continued to dampen demand in the market. A trader in the Mumbai market told Indianpetrochem, "There is no improvement in demand for C9 in the market as the price is still high." He further said, "The month of September was the worst month for chemical sales during this year." C9 was sold today in the Mumbai market at around Rs 110 a litre. 
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