POLYMER BAZAAR

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Ethylene Monomer :
USA :  Cents/lb
19.50-19.00 FD GC ( Down )

Europe : €/Mt
810 - FD NWE ( Down )
795 - CIF NWE ( Stable )

Asia-  USD/MT:
855 : CFR NEA ( Down )
915 : FOB SEA( Stable )

China Bazaar : Prevalence of moderate demand in the major plastic raw material bazaars in China has kept the prices stable.

According to our sources, the respective spot prices for HD, LD, and LL were at around 8,610 Yuan/MT,  9,150 Yuan/MT, and 8,590 Yuan/MT.

SEA: In SEA, there has been a fear tone circulating among PE community due to a possibility of the demand weakening in the ruling quarter. So, processors have become very careful in booking imports.

A major Saudi Arabian producer has failed to elicit sufficient buying interest after raising its PE offers for Jan 2023 shipments by USD 10-20/MT from USD 990/MT for HD Film, USD 1000/MT for LL Film, respectively, on CIF terms.

India: We have come across quotations of foreign producers that were stable to firm in price levels.

Latest Rate Revision: With effect from 5 Jan'23- Indian producers have rolled over their PE prices.

Custom Exchange Revision: : With effect from 6 Jan 2023, the GoI has raised the customs exchange rate for imports to INR 83.70/USD(+0.15).

Buying Pulse: During the week under review, moderate demand and lesser availability were on the prime focus.
Due to the shortage, premiums came into the force.

According to sources, the shortage of LDPE Moulding was severe, and that pushed the spot prices to Rs 140-145Kg.

Moreover, HD IM, LL Film, LL IM were significantly short in supply during the week. And, the shortage prompted traders to charge premiums of Rs 1-3/Kg.

However, the premiums are expected to wane in the next week as IOCL is likely to release fresh material.

Purchase Opinion: The overall bazaar atmosphere shows an uncertain trend. And the price governing factors indicate a possibility of a price upswing due to the latest upward revision in the customs exchange rate, making imports costlier. Based on the overall scenario, we advise buying at the current prices.

Ethylene Monomer :
USA :  Cents/lb
19.50-20.75 FD GC ( Down )

Europe : €/Mt
820 - FD NWE ( Down )
795 - CIF NWE ( Down )

Asia-  USD/MT:
875 : CFR NEA ( Stable )
915 : FOB SEA( Stable )

China Bazaar : In China, PE processors have curtailed their finished-products production due to the year-ending effect. As such, there was no reason for them to go to R/M bazaars, which therefore bore a dull look. And, the spot prices have slid as a result. According to our bazaar sources, the spot HD, LD and LL prices have slipped to around 8,630 Yuan/MT, 9,040 Yuan/MT, and 8,550 Yuan/MT, respectively.

Indian Bazaar :
Latest import offers were assessed on a firmer note in parity with global price references.

Latest Rate Revision: With effect from 29 Dec. '22, Indian Polymer Producers have rolled over their ex-works prices.

Buying Pulse : In the Indian plastic R/M bazaars, all sections of participants have suspected the local producers to push their prices further upwards in the upcoming price revision. And that is precisely the reason behind sellers seeing good sales, as converters found it a wide move to buy as much R/M as possible at the current prices.

On the other hand, traders took the advantage of improving sales, and unavailability of fresh supplies from local producers by charging premiums of Rs 3-6/Kg in all the PE segments.

Purchase Opinion:Given the ruling price governing factors, expected bazaar movement in the coming days, and the overall current scenario, we expect the local producers to come up with the price increment in range of Rs.2-4/Kg on 1 Jan 2023.So, R/M procurement is advised at company rates.

Ethylene Monomer :
USA :  Cents/lb
20.00-20.75 FD GC ( Stable )

Europe : €/Mt
830 - FD NWE ( Stable )
805 - CIF NWE ( Stable )

Asia-  USD/MT:
875 : CFR NEA ( Stable )
915 : FOB SEA( Down )

Global Bazaar Status: In the global bazaars, the buying and selling mood is off due to the Christmas and New Year being round the corner. So, trading has waned.  

India: The latest overseas offers have climbed from the previous levels. Strengthening demand is the key driver of the rising offers.

WEF 22 Dec 2022, the domestic ex-works prices of HD and LL have become higher with the exception of the LD prices, which stood static.

Buying Pulse: Purchases were aggressive. Processors anticipated the recent price hike by the local producers, and they procured their R/M to build their inventories at the ruling prices before the price revision.

Subsequent to the announcement of the revised prices, the buying momentum further strengthened. Converters tried to cover their R/M needs as much as possible before another round of price revision towards the northern side.

Therefore, the stocks available with traders have sunk. And, the availability became tight due to lesser supply from the local producers.

Our bazaar sources have reported acute shortage of HM Pipe ( PE 80 & .100 ) , LL Film ,HM film & few other variants .

Purpose Opinion: All bazaar pointers show the possibility of further price hikes in the coming days. Based on the current scenario and other price regulating elements, polymer procurement is suggested at the current levels.

Ethylene Monomer :
USA :  Cents/lb
20-20.5 FD GC ( Up )

Europe : €/Mt
850 - FD NWE ( Down )
870 - CIF NWE ( Stable )

Asia-  USD/MT:
895 : CFR NEA ( Up )
925 : FOB SEA( Up )

In China, the major plastic raw material bazaars sustained a grim trading atmosphere related to the PE materials.
Processors were in a mood to take a stock of the bazaar situation after the govt gradually easing the COVID curbs.
On the other side, there was strong propensity for purchasing imported materials. According to some bazaar participants, most Middle Eastern and Thai offers stayed stagnant, but a few offers were higher by USD 10/MT compared to last week.

Again,we observed the presence of latent demand in the bazaars, as many processors carried less raw material in their inventories. And, that means buying should resume in the near term.Again, we have heard that some PE plants will be shut down for maintenance. So, the prices are likely to go up if demand improves on account of supply tightness.

In a discussion with a trader, we came to know that HD, LD, and LL were sold in the major bazaars at around 8,670 Yuan/MT, 9,230 Yuan/MT, and 8,430 Yuan/MT, respectively.

Indonesia –Most international suppliers have exhausted their December allocation. And their eyes are set on the China bazaar.  If demand improves in China, the producers are likely to raise their offers.

India:
Latest overseas offers: Due to the northward movement of the global price references, the latest international offers lifted upwards this week.

Latest Rate Revision: With Effect From 8 Dec. '22, Indian Producers rolled over LLDPE, LDPE & HDPE prices except HD/HM Pipe prices, which were up by Rs.2/Kg( Approx. USD 25/Mt )

Buying Pulse:  The latest pricing strategy of the local producers reflected a hint of the prices moving upwards in the near term. That has imparted a buying push among processors, improving the demand in the bazaars.

Purchase Opinion : Given the indications in place & the other influencing factors, it seems that the commodity is heading towards a uptrend. As per current equations,Polymer procurement is advised at current levels.

Click to Download PDF with historical Data :

Ethylene Monomer :
Europe : €/Mt
855 - FD NWE ( Down )
870 - CIF NWE ( Up )
Ethylene contract price for Dec'22 has also been revised lower by € 30/Mt (From Nov'22) at € 1265/Mt - FD NWE.

Asia-  USD/MT:
885 : CFR NEA ( Stable )
885 : FOB SEA( Stable )

China Bazaar:
In weak demand conditions, there has been an arousal of an optimism among the bazaar participants in China.
Participants have become optimistic due to the possibility of industrial activities resuming in the coming days.

SEA: In the major SEA bazaars, the demand continues to remain weak. As a result, overseas producers have continued to lower their offers. We came to know that a Saudi Arabia producer announced HD and LL offers lower by USD 60-80/MT to Vietnam. And, the same producers cut its LD offer to Vietnam by USD 180/MT.  Again, Saudi Arabian producers are facing cut-throat competition from Russian producers. So, there is the possibility of dealing prices coming down to around USD 900/MT for Saudi Arabia origin LL Film.

India: The prevalence of muted demand conditions has constrained overseas producers to lower their offers for Indian bazaars. We have observed the shortage of imported PE variants in India, and that also can cast a shadow on the overall open bazaar prices.

Latest Rate Revision : With Effect From 1 Dec. '22, Indian Producers slashed prices in range of Rs.3-5/Kg (Approx. USD 38-62 /MT - For detailed grade wise Revision Refer Website ).

Custom Exchange :  Effective 2 Dec.'22, GoI has slashed the customs exchange rate to 82.00/USD (-0.60).

.Buying Pulse: After the period of relentless price cuts by local producers, the converter community has become extra cautious in their raw material procurements.  At the same time, the converters have been in a slow mode due to lower demand for their finished products.

Given the past stands of the local producers, they may announce lifting based discount schemes for Dec.'22.
As usual, during off peak phase the buying community exercises a wait and watch stance in the anticipation of getting an attractive offer or a price cut.

Purchase Opinion : Given the indications in place & the other influencing factors, it seems that the commodity is heading towards a downward trend. As per current equations,  buying is advised for routine requirements.

Ethylene Monomer :
Europe : €/Mt
865 - FD NWE ( Down )
865 - CIF NWE ( Down )

Asia-  USD/MT:
885 : CFR NEA ( Stable )
885 : FOB SEA( Stable )

China Bazaar : The recent developments in China have acted no differently than a spark to ignite the buying tendency among PE processors.

Unlike the central banks in the US and Europe, the Chinese banks have acted in a pro-industry manner by reducing the interest rate, and extending more credit options for the real estate industry, which is currently in the slumps.
Immediately after the news of the latest financial decisions, trading in Dalian Commodity Exchange intensified, raising LL futures above RMB 8,000/MT for the first time since 10 Oct 2022.

Processors rushed to procure all the LL Film import cargoes below USD 950/MT CFR. Our sources have informed us that many Middle East origin LL cargoes changed hands from exporters to Chinese buyers within the USD 920-940/MT CFR range.

However, the sudden upsurge in offer booking activity does not mean that the overall demand has strengthened. It was a temporary affair driven by the recent policy announcement.

India: On account of the sluggish bazaar conditions, overseas exporters have continued to lower their offers for Indian bazaars.

Processors in India exercised extra caution in their raw material procurements due to the price reversals by the local producers. They are looking forward to the possible bazaar scenarios post 1 Dec 2022.
Although, there is the price stability assurance till the month end, the prices are likely to undergo another round of downturn on 1 Dec 2022 due to the grim global bazaar status.

Given the possible scenarios, the local producers may lose ground if they do not lower their prices in the next price revision. In order to inject a buying spirit, indian producers have announced Price Protection.

Purchase Opinion : Given the indications in place & the other influencing factors, it seems that the commodity is heading towards a downward trend. As per current equations,  buying is advised for routine requirements.

Ethylene Monomer :
Europe : €/Mt
885 - FD NWE ( Stable )
865 - CIF NWE ( Up )

Asia-  USD/MT:
885 : CFR NEA ( Stable )
885 : FOB SEA( Stable )

China: With the rumour mills spreading the possibility of the Chinese govt relaxing part of the COVID curbs, the PE bazaar saw some activities.
While the prices rose a little bit in some bazaars, the prices stayed still in other bazaars. During a conversation with a Chinese trader, he revealed that he was selling LL Film at around 8,620 Yuan/MT.

USA : In the US plastic raw material bazaars, PE purchases were strong, arsing out of the converters engaging in building their raw material inventories. With the availability of ample supply, the prices stayed unmoved despite the stronger demand.

India: This weak demand conditions in the Indian bazaars have forced the overseas to reverse their import offers during the week under consideration.

Continuing the successive price reduction, the Indian producers have pushed their PE prices towards the south in sync with the movement of the global price references with effect from 10 Nov 2022.

The producers also have added lifting based discount scheme for Nov’22 under different heads to their buyer-attracting strategy, parallel to the price reduction, as they apprehended that buyers were hard to convince with the price reductions alone.

Buying Pulse: The disagreement between imports & domestic prices has also incited the producers to cut PE prices three times in a row during Nov.'22.  

On the other hand, the unusual price revisions have spread a tone of fear amongst processors & importers, eroding their confidence.
As such, processors have decided not to purchase any extra quantities due to the abrupt price reversals.

To boost buying confidence, local producers came forward & announced Price Stability Assurance for current month.

In addition to the weak demand, the availability of cheaper imported cargoes, compared to Indian makes, are responsible in triggering price falls.

 We would also like to remind our subscribers that as of now local producers have an Early Bird Discount policy for kicking buying momentum.

Purchase Opinion : Given the indications in place & based on the other influencing factors, it seems that the commodity is heading towards southward .If demand dynamics continue to remain dull- we expect local producers either to announce further  price cuts, or price protection, that seem fit, in the days ahead. As per current equations, Need Based buying is advised.

Ethylene Monomer :
Europe : €/Mt
900 - FD NWE ( Up )
800 - CIF NWE ( Down )

Asia-  USD/MT:
NEA :  885 CFR ( Up )
SEA : 885 FOB ( Stable )

China: The spate of bearish sentiments prolongs in the Chinese PE bazaars. With the supply increasing, especially imports, sellers have found no way to liquidate their stocks in the weak demand conditions. The current COVID19 lockdowns have played their roles in cubing the demand. The resultant hindrances to the logistics and warehousing apart from slowing down manufacturing activities have significantly affected the plastic raw material trading in China.

Again, the weakening Yuan also has acted as a big blow to PE sellers. Due to the absence of active buying, sellers were not able to pass on the USD costs to buyers, compounding to their losses. Overseas exporters have lowered their offers to China to attract buying attention. According to the information received, some overseas producers found no other option but to agree to offer LDPE materials within USD 970-990/MT CFR China.

USA : PE trading activities were robust in the major plastic raw material bazaars in the US. The availability was also ample. So, there were no significant changes in the spot prices. However, things appear to be a little different in the medium term. There has been significant erosion of the stock with sellers due to strong buying. So, the issue of lesser availability might come up in the near future.

India: There was no good news for overseas producers from the Indian bazaar. So, they incorporated a marginal reversal in their offers from the levels in the last week.

The exiting bazaar conditions also forced Indian producers to follow suit. So, the producers slashed their HD and LL prices on 1 Nov 2022.
Sensing that their downward price revision might not work alone, the producers parallelly offered lifting based discount scheme for Nov’22 under different heads.

Buying Pulse: The initial attempts of the producers to arouse the buying spirit among buyers failed. So, they embarked upon another price cutting mission, slashing the prices further by Rs 4/Kg ( Approx USD 49/Mt ) within an unexpected span of 48 hours.  Unable to digest the unexpected price falls, the processing industry has succumbed to a confusing state.

Converters were already in a pathetic state, posed by lacklustre demand for finished products, monetary issues, etc. And, the unprecedented pricing volatility has eroded their buying confidence. Compounding to the weak demand, the availability of cheaper imported cargoes, compared to Indian makes, has also catalysed the price falls.

Purchase Opinion : Given the indications in place & based on the other influencing factors, it seems that the commodity is heading towards southward .If demand dynamics continue to remain dull- we expect local producers either to announce further  price cuts, or price protection, that seem fit, in the days ahead. As per current equations, Need Based buying is advised.

China : The lull in the Chinese PE bazaars continued. And the recent spate of COVID19 lockdowns have curbed the bazaar activities further.
Due to the dull bazaar

conditions, overseas producers have moved to their back foot in announcing new offers despite the tight availability condition in China.

In the weak demand conditions, there were a few Saudi Arabian LL Film transactions at USD 930/MT, lower by USD 30 MT than the previous deals.

 USA: PP trading was strong in the major plastic raw material bazaars in USA. With ample availability, the prices stayed almost stable. And, there was also an apprehension among the bazaar participants that the producers might lower their ex-works prices in the coming days.

India: This week, the overseas international offers remained stable in comparison with those in the previous week.

Indian producers also kept their prices unmoved in their price revision effective from  27 Oct 2022. The move seems to arise from the overall weak demand conditions.

Currency Impact :The record weakening of the INT against the USD has prompted the GoI to hike the customs exchange rate to 83.90/USD (+1.45) effective from 21 Oct 2022

The hike in the customs exchange rate is likely to impact polymer prices on India as landing costs of imports will be higher. Producers structure their pricing strategies on the basis of import price parity
.
Buying Pulse: Bazaars are likely to resume operations from Monday next after Diwali celebrations.
We will assess the bazaar movements thereafter to apprise our readers about the nitty-gritty aspects of the bazaar trend.
.
Purchase Opinion :Based on the price governing factors and the overall bazaar climate, we advise buying at the current levels. We will also issue the price prediction in due course of time.

Feed Stock—Ethylene Monomer Price in Key Regions.

Europe:
FD NWE : Euro 495/MT
ASIA :
CFR N.E.A.:  945 USD/MT CFR ( Down )
CFR S.E.A. : 935 USD/MT ( Down )

In the US PE bazaars, the spurt in demand has continued this week. Processors have aggressively procured the raw materials to build up their inventories at a time when the availability is ample. There is also the news doing the rounds that the producers were preparing to curtail their production to balance the bazaar oversupply supply condition.

China : As we expected the demand to strengthen before the National Holidays, PE buying has increased in the plastic raw material bazaars of China. There is also ample availability. So, the increase in demand was not able to impact the price movement.
The demand is expected stay either at the current levels of strengthen further due to the pre-holiday buying spree ahead of the Golden Week holidays, to commence from 1 Oct 2022 and extend up to 7 Oct 2022.

Traditionally, processors prefer to build their raw material inventories before going on leave—as such, the demand gains strength.

India : Latest overseas offers were assessed mostly stable in comparison with previous week.

Currency Depreciation : INR -USD exchange rate has touched all time high above 80-81 Mark. As a result, landed costs of imports have gone up.

Latest Rate Revision:   RIL has rolled over HDPE, LLDPE  & LDPE  prices with effect from 22 Sept 2022.

Buying Pulse:The main hindrance for PE processors is the unsatisfactory sales of their finished products. So, they curtailed their raw material procurements, entailing soft demand conditions in the country’s bazaars. For HM , LL Film, moderate demand was observed in the major plastic raw material bazaars.

A reputed trader corroborated our bazaar assessment  by saying—"converters not receiving a higher number of orders for finished products is the main reason for the current state of demand affairs”.

LLDPE -LDPE  Delta Squeezed :
Overseas offers for Indian Ports were assessed closer between LLDPE & LDPE. And, at Indian Open bazaars - LDPE GP prices witnessed very thin margin from LLD Film from the routine course.

However, sellers can see good days ahead. On a/c of the upcoming Diwali festive season- buying sentiments are expected to gain momentum-scripting a likelihood of demand revival.

Shutdown Season :
The scheduled maintenance plant shutdowns will disrupt the bazaar dynamics on they go on-stream. Prices will go up, availability will come down.  

Given the traditional practices, refinery issues are one of the demand drivers in the Indian bazaars. Therefore, the refinery turnarounds are expected to trigger demand.

RIL’s scheduled maintenance shutdowns are expected to disrupt PP and LDPE supplies. And, IOCL’s Panipat plant issue is likely to hamper olefin supplies to Indian PP and PE producers.

Purchase Opinion: As the local demand is expected to stay strong until Diwali, and the prices are likely to exhibit a stable trend, we advise processors to buy at the current price levels.

Feed Stock—Ethylene Monomer Price in Key Regions.

Europe: Contract price settles lower by Euro 120/MT to Euro 1305/MT - FD NWE
CFR N.E.A.:  1005 USD/MT CFR ( Up )
CFR S.E.A. :  1005 USD/MT (Stable)

Key Global Bazaars :
USA : PE bazaars in the US sustained active trading due to the prevalence of strong demand. In a conversation with an American trader, we came to know that there was an air of uncertainty in the bazaars due to the expected supply tightening in the coming days. And, the uncertainty has triggered stronger demand.

Europe : In line with our expectation, the European Central Bank raised its interest rate by 75 basis points from 8 Sept’22 following the 50 points hike in July last.

  China  : In the major Chinese plastic raw material bazaars, PE prices have stayed range bound due to weak demand conditions. However, things may turn rosy with the approach of the peak demand season. Moreover, the supply is gradually increasing due to some plants restarting after the maintenance shutdown.  

India: Indian polymer majors rolled over their ex-works prices this week from those in the previous week—global bazaar conditions are behind the move.

Buying Pulse :A mixed PE buying trend was observed this week. In the early phase of the week, active demand prevailed.
Converters procured the raw materials actively in anticipation of a price correction. But, the demand tumbled, and turned into a soft mode after the price decrements.

We interacted with a few PE processors and came to know that many processors were constrained by liquidity crunch. And, at the same time many processors have receive limited orders for finished product supply.  Due to these factors, the buying seems to have slowed down in the  later part of the week.

Regardless of the situation, processors should bear in mind that the dark clouds that hovered on the pricing horizon have become darker with the approach of mid-Sept, from which, the scheduled plant maintenance will go on-stream.

The scheduled plant issues/shutdowns:
IOCL:  65 days shutdown of its Panipat plant, starting mid-Sep 2022
RIL   :20-21 days shutdown of its Jamnagar-based LDPE Plant, from mid-Sep 2022
GAIL: lower plant operating rate for 2-3 months due to gas shortage

Latest Rate Revision:   RIL has rolled over HDPE, LLDPE  & LDPE  prices with effect from 8 Sept 2022.

HDPE : Strong demand against limited availability was observed for all grades.

LLDPE :  Limited availability, and strong demand-- open bazaar basic price of LL Film has crossed INR 113-114/Kg at Ahmedabad.

LDPE : Strong demand continued after the previous week.

Purchase Opinion: As the local demand is expected to stay strong until Diwali, and the prices are likely to exhibit a stable to firmer trend, we advise processors to buy at the current price levels.

China :With the decline in crude oil prices, Chinese PE buyers have postponed their raw material purchases in the hope of seeing PE price falls as a result of oil price downslides. Therefore, demand has weakened, and prices have stayed range bound.

As per our sources, a Canadian LLDPE Film offer appeared in China, and that was below the USD 900/MT mark. Notably, Ethylene prices in Asia have shown a northward trend after April this year.  

India: Driven by the global pricing trend, overseas PE producers quoted lower offers this week in comparison with those in the last week.

Latest Rate Revision :   RIL did not seem to bother the import price parity concept this time. Instead, the petrochemical behemoth seems to have leveraged the stronger demand conditions in the home bazaars.

RIL has increased its HDPE and LLDPE prices with effect from 1 Sept 2022. But, the company reduced its LDPE prices, and withdrew Price Protection.

Buying Pulse : In Indian bazaars, the following factors have aroused the buying tendency among converters—the uncertainty in pricing due to the upcoming maintenance plant shutdowns, and stronger demand due to the festive season knocking at the door. Consequently, the buying has strengthened substantially.

HDPE : Stronger demand was observed for all the grades, including Raffia & Pipe grades.

LLDPE  :  Buying strengthened further, and the aggressive buying has lifted the open bazaar basic price of LL Film to more than INR 118-119/Kg at Delhi.

LDPE : There was no improvement in demand, which continued to remain low.

A Recap of the Upcoming Plant Shut Down Schedules:
We would like to remind you that the availability is expected to dwindle in this month due to the  undermentioned plant issues.

GAIL’s curtailment of plant operating rates due to gas shortage. As we have reported earlier, the plant operating rate will remain low for 2-3 months.

IOCL has also scheduled a maintenance turnaround of its Panipat plant from mid-Sept 2022, for 65 days.

RIL  has planned to shut its Jamnagar-based LDPE Plant in mid-September, 2022 due to a refinery shutdown for maintenance work for 20-21 Days.

Speaking to a PB editorial team member, a Delhi-based trader said,” The buying confidence among converters seems to have returned. And, with the prospects of reduced availability and price rise in the days ahead, due to plant shut downs, we are witnessing aggressive offtake of HM , LL Film , HD Blow, HD IM & other grades. Converters have increased their raw material off-take in anticipation of the demand increment for finished products on a/c of the festive season ahead ”

Mumbai Open Bazaar - ( Rs./Kg+GST)
HDPE
HD Raffia : 116.00
Inj. Mldg, : 111.25
Blow Mld : 116.00
HM Film  : 123.75

LLDPE  
Film          : 114.50
Roto         : 123.25
Hi Flow    : 126.00

LDPE  
Gen. Pur. : 112.75
Lamination : 134.00

Purchase Opinion: As the local demand is expected to stay strong until Diwali, and the prices are likely to exhibit a northward trend, we advise processors to buy at the current price levels.

China :  A downward trend was observed in the PE bazaars in China. However, the demand may increase in the near term due to the peak agricultural season is around the corner.

India: Maintaining the global pricing trend, overseas PE producers quoted lower offers in comparison with those in the previous week.

Latest Rate Revision: With effect from 25 August’22  - RIL rolled over HDPE & LLDPE & LDPE prices. Furthermore, the petrochemical major introduced Price Protection in LDPE to instill buying tendency.

Buying Pulse : The twin impacts of stronger demand due to the arrival of the Diwali festival, and the possibility of a supply shortage due to plant shutdowns in the days ahead have injected a strong buying propensity among converters. As a result, the demand has substantially improved.

PE supply is expected to dwindle in the coming days due to
GAIL’s curtailment of plant operating rates due to gas shortage. As we have reported earlier, the plant operating rate will remain low for 2-3 months.
IOCL has also scheduled a maintenance turnaround of its Panipat plant from mid-Sept 2022, for 65 days.
Reliance Industries Ltd (RIL) is also planning to shut its Jamnagar-based LDPE Plant in mid-September, 2022 due to a refinery shutdown for maintenance work for 20-21 Days.

HDPE : Substantial demand was observed for HD Injection molding, HM Film & HD Blow Moulding grades. And, there was an uptick in demand for HD Raffia & Pipe grades.

LLDPE  : With the announcement of price stability by local producers, the demand dynamics have gained momentum, which is expected to strengthen further in the days ahead .

LDPE : The situation is the opposite--buying sentiments are bearish. RIL has offered Price Protection in addition to lifting-based discount scheme, aimed at strengthening the buying tendency.

In the context of the prevailing PE bazaar conditions, a Delhi-based trader said, " The conversion industry's buying confidence seems to be coming back to the bazaars. On a/c of producer's stand of reducing plant operational rate may lead to supply constraints in days ahead.. We are witnessing quality offtake of HM , LL Film , HD Blow, HD IM & other grades in anticipation of the demand generation of finished products on a/c of festive season ahead ”

Purchase Opinion: Supply shortage may act as a dampener to the bullish sentiments by catalyzing price trends in the near future. And local demand is expected to stay strong until Diwali ( Indian Traditional New Year ). In consideration of the current scenario & expected influence of other price regulating equations, for HDPE & LLDPE we advise processors to buy at the current price levels.

China
Inflow of imports have raised the availability of PE in the plastic raw material bazaars in China There was a slight improvement in demand but that was not strong enough to impact the prices, which have not changed from around 8,340 Yuan/MT.

Although, international suppliers have been dumping PE materials in Chinese bazaars as they are finding customers there, they have not yet mustered the courage to raise their offer prices due to the global uncertainties. Our sources have reported that LLDPE and HDPE film offers have stayed below the USD 1000/Mt mark.

Our sources have further reported that high volumes of USA and Iran origin LDPE materials have entered the Chinese bazaars.

India
This week, overseas offers for PE materials were assessed lower as compared with previous week.

Latest Rate Revision: With effect from 11 August’22  - RIL rolled over PE Prices

In another development, the arousal of GAIL’s supply issue may lead to a shortage of PE variants in the bazaars in the days ahead, when demand is expected in increase due to the festive season.

The public sector company has said that it will supply only to those customers who have signed an annual contract - means the supply will be restricted for next 2-3 months.

GAIL’s move comes in the wake of lowering the operating rate of its plant due to gas supply issues.

HDPE :
Demand dynamics for HD Raffia, IM, Film, Pipe & BM variants are moderate with routine procurements only.
After eliciting high premium for couple of months, HD Blow has now been free of premiums, and is available at company price in most pockets.

LLDPE : Demand has become moderate again but expected to improve in the days ahead .

LDPE : Buying sentiments are bearish - RIL has offered lifting based discount scheme to invigorate buying tendency.

Purchase opinion:The possible supply shortage due to GAIL issue may bring back premiums to the bazaars. So, buying is advised at the current price levels, considering the overall current scenario, and the price driving factors.

China:
The general consensus among Chinese PE sellers is that PE prices will be under downward pressure due to damp bazaar environment. The demand has dampened due to the prevalence of pessimistic sentiments among buyers, who fear an economic recession to happen due to  the Fed’s interest rate hike.

Due to the state of affairs, international PE suppliers have pulled down their PE offers for August 2022 by three digits.

At the time of filing this report, we came to know that buyers have already purchased enough quantities of LL Film materials but they are pushing back LDPE Film procurements.

India:

Latest Overseas Offers: International suppliers have quoted lower offers ( CIF NS) for August 2022 shipment as compared with those for the previous week.

Latest Rate Revision: With effect from 4 Aug. 2022, Indian polymer producers slashed HDPE, LLDPE & LDPE prices again. (Refer in Revision section). This reduction is a clear hint of the impact of the free fall in the prices of PE variants in global bazaars. The local producers were forced to offer price reductions twice just in a span of 4 days.

HDPE:  On a/c of improved availability of HDPE variants - open bazaar premium has been grounded to null. After being in short supply for more than 3 months- supply cycle of HDPE BM variants is eased, which has helped processors to source polymer at the company price.  Again, sellers have reported lower sales of IM, Raffia & HM grades.  

LLDPE: In the first half of the week, the off-take of the LL Film, Lamination & other grades showed uptick, however improved demand cycle was short lived.

In another improvement, HDPE BM- LL Hi flow grade's availability also improved & premium vanished as a result.

LDPE:  The marginal price reductions twice in a shot span have made processors more cautious as they lost confidence due to prevailing uncertainties.

Processors have opted for need-based buying policy  for both domestic and imported LDPE variants. The lifting-based discount scheme offered by RIL for August 2022 triggered a moderate buying propensity among processors.

Bazaar Watch:
The bearish mindset arising on account of the uncertainties in the bazaar environment has incited buyers to adopt a wait and watch mode, abstaining from raw material inventory building out of consideration as of now.

Open Bazaar Rates (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow  (Indian ) : Rs. 114-115
Blow ( Imported ) : Rs. 111-112
HD IM : Rs.107-108
HM Film : Rs.118-119
Imported HM : Rs. 114-116
LL Film :Rs.107-108
LD GP ( MFI : 4 Gms/10 Mins ): Rs.116-118
LD Lami  Imported : 134-135

Purchase Opinion: Our analysts have warned against purchasing bulk PE amounts, as that can elicit severe losses due to the uncertainty in the days ahead. In view of the current and expected bazaar movements, we advise buyers to adopt the need based buying policy as of now.

Kindly Refer Weekly PDF Report for Historical Data 2021-22 with Graphical Presentation
1.Weekly Feed stock Movement & Historical Data
2.Weekly China PE Spot & Future offers
3. Plant News
4. Overseas offers ( USD/Mt) -Historical Data
5. Open Bazaar Price INR/Kg - Historical Data.
6. VIP Delegations.

Global:
Lack of buying confidence due to the uncertain demand conditions in the month ahead has squeezed the demand in the key Asian bazaars. As a result, international PE suppliers have been forced to cut their offer prices for August 2022 shipments.

China:
In China, two factors have worked—reduced sales of PE end-products, and uncertainty for the days ahead—to weaken the buying confidence of processors. Resultantly, PE demand has waned in the plastic raw material bazaars of that country. And, PE prices spiralled downwards as a result.  

Overseas PE producers have responded to the muted demand conditions by lowering their PE offers for August PE by three digits.

India:
Latest Overseas Offers: International suppliers have quoted lower offers ( CIF NS) for August 2022 shipment.

Latest Rate Revision: With effect from 21 July 2022, Indian polymer producers slashed HDPE, LLDPE & LDPE prices, primarily due to the international offers coming down. (Refer in Revision section)

HDPE:  Eventually, the availability has increased to balance the demand. So, the premiums have vanished. The BM grade is now available in adequate quantities without any premiums. Again, sellers have reported lower sales of IM, Raffia & HM grades.  

LLDPE: Premiums for the Hi Flow grade have declined due to improved availability from local producers. The off-take of the LL Film, Lamination & other grades was strong this week.

LDPE: Need-based buying was observed for both domestic and imported LDPE variants. The lifting based discount scheme offered by RIL for July 2022 triggered a moderate buying propensity among processors.

Bazaar Watch : Despite the improved availability, processors were careful in their raw material procurement process due to the price falls. They preferred purchasing for their regular factory needs. And, they kept raw material inventory building out of consideration as of now.

So, the effort of domestic producers to strengthen buying confidence by offering Price Protection for PE off takes till month end did not succeed in triggering aggressive buying.

Open Bazaar Rates (Rs/Kg, Ex Bhiwandi , Excl. GST)
HDBlow  (Indian ) : Rs. 122-123
Blow ( Imported ) : Rs. 120-121
HD IM : Rs.113-115
HM Film : Rs.123-124
Imported HM : Rs. 118-120
LL Film :Rs.116-117
LD GP ( MFI : 4 Gms/10 Mins ): Rs.127-128
LD Lami  Imported : 145-146

Purchase Opinion: Buyers should not undermine the uncertainty in price movements in the days ahead. So, they should remain vigilant and not fail to assess all price regulators before deciding to procure PE at the current prices.
Our Analysts have assessed the impact of all the drivers of bazaar movements and price regulating forces, and came up with the following prediction for the price revision slated for 1Aug.'22.

HDPE, LLDPE & LDPE: The likelihood of the domestic producers bringing the prices down by Rs 1-3/KG is expected to materialize. Besides, the withdrawal of the existing Price Protection is high on the cards.  


Kindly Refer Weekly PDF Report for Historical Data 2021-22 with Graphical Presentation.
1.Weekly Feed stock Movement & Historical Data
2.Weekly China PE Spot & Future offers
3. Plant News
4. Overseas offers ( USD/Mt) -Historical Data
5. Open Bazaar Price INR/Kg - Historical Data.
6. VIP Delegations.

China: PE bazaars in China were engulfed in a sluggish atmosphere, pervaded with bearish sentiments. Slackening demand for end-products, and fears of a possible economic recession have pushed PE converters to the back foot in purchasing raw materials, resulting in the occurrence of poor demand in the bazaars of that country. Resultantly, PE prices have demonstrated a downward trend.

India: Latest overseas offers on CIF NS,Mumbai basis were quoted lower in comparison with the previous week. ( Refer PDF Report).

Latest Rate Revision: With effect from 21 July 2022, Indian polymer producers slashed HDPE, LLDPE & LDPE prices maintaining the import price parity. (Refer in Revision section)

Custom Exchange Rate: The GoI sets the lifetime high customs exchange rate at INR 80.95/USD, with effect from 22 July 2022. And, its impact on imports can be easily figured out—the landed costs will go up, making imports a costlier option.

HDPE:
Although, the resumption of the supply of the BM grade lowered the erstwhile premiums, the inadequate supply has failed to erase the premiums altogether. As such, the premiums continued to make their presence felt, albeit in lower amounts. Again, the sales of IM, Raffia & HM grades have gone lower. But the availability was adequate. In contrast, the off-take of the imported variants, like Marlex 5502,  Iranian BL 3 and others was strong.  

LLDPE: Improved availability has lowered the premiums for LLDPE. Remarkably, the HI Flow grade was sold with higher premiums due to restricted availability. On the demand side,  improved off-take was observed for LL Film, Lamination & other variants.

LDPE:  RIL offered lifting based discount scheme for July 2022. The industry is participating in the routine buying process in LDPE variants of Imports & local make.

Bazaar Watch :
Domestic producers have tried to counter the dull demand conditions by offering Price Protection for PE offtake till month end.The relentless price reductions have rendered the processors more cautious in their procurement process & hence opted for the need-base buying policy.

Open Bazaar Rates (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow  (Indian ) : Rs. 122-123
Blow ( Imported ) : Rs. 120-121
HD IM : Rs.113-115
HM Film : Rs.123-124
Imported HM : Rs. 118-120
LL Film :Rs.116-117
LD GP ( MFI : 4 Gms/10 Mins ): Rs.127-128
LD Lami  Imported : 145-146

Purchase Opinion: Given the ruling scenario, buyers must pay extra attention & monitor all price governing factors before making critical decisions related to PE procurement at current price levels

Kindly Refer Weekly PDF Report for Historical Data 2021-22 with Graphical Presentation.
1.Weekly Feed stock Movement & Historical Data
2.Weekly China PE Spot & Future offers
3. Plant News
4. Overseas offers ( USD/Mt) -Historical Data
5. Open Bazaar Price INR/Kg - Historical Data.
6. VIP Delegations.

China: : PE sellers in Chinese plastic raw material bazaars have seen weak sales during the week under review. In China, PE converters have lessened raw material purchases as they saw dull demand for their end-products. Also, the gloomy atmosphere arising due to the economic recession concerns have squeezed the buying spirit among converters in China. As a result, spot PE prices drifted further downwards. 

India : Latest overseas offers for CIF NS,Mumbai assessed lower in comparison with the previous week. ( Refer PDF Report).

Latest Rate Revision: With effect from 14 July 2022, Indian polymer producers slashed HDPE, LLDPE & LDPE prices by Rs.3/Kg, maintaining the import price parity.

Currency Trend: The INR has depreciated against the USD to record lows, reaching 80 on Thursday. The currency depreciation has turned the bazaar game in favor of the producers. The significantly appreciated USD means the landed costs of imports are higher. And, that is one of the major influencing factors in local price revision calculation. Stated simply, higher landed costs mean higher domestic prices.

HDPE : Premiums for the BM grade remained in the bazaars due to an imbalanced supply. But, the premiums are expected to drift lower or turn nil with the expected improvement in availability in the coming days. The bazaar demand was fed by imported variants, like Marlex 5502,  Iranian BL 3 and others.  Our bazaar sources have reported slow offtake for   IM , Raffia & HM grades, amid adequate availability.

LLDPE: : The HI Flow grade were sold with premiums due to restricted availability.An improved demand observed in LL Film, Lamination & other variants.

LDPE: :  RIL offered lifting based discount scheme for July 2022. The industry is participating in routine buying process in LDPE variants.

Bazaar Watch : Due to the prevalence of dull demand. Again, the producer also announced Price Protection for PE offtake till month end, apparently to arouse the buying spirit among converters.
The relentless price reductions have rendered the processors more cautious in their procurement process & hence opted for the need-base buying policy.

Open Bazaar Rates (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow  (Indian ) : Rs. 126-127
Blow ( Imported ) : Rs. 123-124
HD IM : Rs.116-117
HM Film : Rs.126-127
Imported HM : Rs. 122-123
LL Film :Rs.118-119
LD GP ( MFI : 4 Gms/10 Mins ): Rs.129-130

Purchase Opinion: Given the ruling scenario, buyers must pay extra attention & monitor all price governing factors before making critical decisions related to PE procurement at current price levels

Kindly Refer Weekly PDF Report for Historical Data 2021-22 with Graphical Presentation.
1.Weekly Feed stock Movement & Historical Data
2.Weekly China PE Spot & Future offers 
3. Plant News
4. Overseas offers ( USD/Mt) -Historical Data
5. Open Bazaar Price INR/Kg - Historical Data.
6. VIP Delegations.

Global :
The prospect of an imminent economic slowdown has cast its impact on the crude oil price movements, triggering downward traversals. According to a study by the Citi Group, oil prices could sink to around USD 45/barrel by 2023 via a collapse to around USD 65/barrel by 2022 end.
In addition, the waning demand for plastic end products due to the possibility of a recession has hit the global polymer price benchmarks, pulling them down.

China :
Due to the pessimistic outlook, both spot prices and futures exhibited a downward trend in China. According to our sources, the spot prices for LLDPE and LDPE declined to 8310 Yuan/MT and 10570 Yuan/MT respectively.
Given the bazaar dynamics, PE demand is expected to stay muted in this week.

Last Rate Revision: With effect from 6 July 2022, Indian polymer producers slashed their prices by Rs.5/kg for LLDPE & HD & HM Pipe grades while prices of other HDPE grades have been reduced by Rs.3/Kg.

Custom Exchange Rate: The GoI sets the lifetime high customs exchange rate at INR 79.90/USD, with effect from 8 July 2022, pushing up landed costs of imports.

SUP Factor: On a/c of the imposed ban on SUP, converters are undergoing a tough time. But the exact impact is not yet clear. Only time will tell the story.

HDPE
Despite the price reduction, premiums for the BM grade persisted due to the available supply falling short of the prevailing demand. However, the availability is expected to improve in the coming days, then the premiums will turn lower, or nil. The bazaar demand was catered to by imported variants, like Iranian BL 3 , Markex 5502, and others. Demand is slow for IM , Raffia & HM grades, amid adequate availability.

LLDPE
According to our bazaar sources, there has been premiums for the HI Flow grade due restricted availability.
With effect from 6 July 2022, local producers slashed their prices by Rs.5/Kg which will widen the delta between LDPE & LLDPE.
It was informed from our side that the delta between LDPE & LLDPE was very thin which was expected to widen. At PB, we still see that there is a room to witness further decrement in the near future.

LDPE
This week company offered lifting based discount scheme for July 2022 due to the prevalence of dull demand.

Deals concluded for LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )
1070 LA 17 : Rs.157-158
Aramco E 1970 : Rs.153-154

Open Bazaar Rates (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow  (Indian ) : Rs. 132-133
Blow ( Imported ) : Rs. 127-128
HD IM : Rs.117-118
HM Film : Rs.130-131
Imported HM : Rs. 125-126
LL Film :Rs.123-124
LD GP ( MFI : 4 Gms/10 Mins ): Rs.131-132

Purchase Opinion : Given the ruling scenario, buyers must pay extra attention & monitor all price governing factors before making critical decisions related to PE procurement at current price levels.

HDPE
Blow : During the week under review, PE buyers got some relief from the acute supply shortage due to OPaL resuming its plant after completing the maintenance work.But, the resumption of supply has not been enough to balance the bazaar demand.

The supply of OPaL’s B5004 grade has eased the scarce bazaar situation but failed to eradicate the premium charging tendency of sellers. However, the supply has managed to lower the premiums. Again, the availability of imported HDPE variants—Iranian BL3, Marlex 5502 and few other variants—ruled the entire bazaar as the domestic variants were less available.

The release of the HDPE BM grade by local producers, based on commitment and monthly off-take volumes, has brought some relief for buyers during the week. But the supply has fallen short of the prevailing demand, allowing sellers to continue charging premiums for the GPBM, MBM & LBM grades.
As per our bazaar assessment, the premiums came down to 3-5% over the company prices. Our assessment also shows that imported Bassesl Make HD BM ACP 5231 D was sold in the range of Rs.127-129/KG +GST Ex Bhiwandi.

IM
The premium charging spree continued for the HDPE IM grade due to depleting stocks in bazaars. As per our bazaar study, the premium for the grade was within Rs.2-3/Kg over the company price in range of Rs.123-125/Kg+GST ( Ex-Mumbai).  Our industry sources have informed our editorial team that the supply of the IM grade from domestic producers is likely to improve in the days ahead.

HM : The premiums slipped due to the demand becoming lackluster. Our interaction with sellers made us aware that GAIL’s HM F 55 was sold in the range of Rs.134-135/KG +GST Ex Ahmedabad. Moreover, traders have reported to our editorial team that deals of imported TR 144 and a FEW OTHER MAKES concluded in the range of Rs.129-130/KG +GST Ex Ahmedabad.

LLDPE
IM/Hi Flow:  With the availability of imported LLDPE variants, the premium for the Hi Flow grade came down, but the premium remained the highest during the week.  

Persistence of short supply has maintained the highest premium status for the grade in the plastic raw material bazaars of the country. In the Ahmedabad bazaar, sellers sold LLDPE, having MFI of 50 Gms/10 Mins, in range of Rs.148-150/Kg +GST ( Ex- Mumbai ) Or even higher.

Film : Moderate demand has kept the prices for the grade bound in the range of  Rs.130-131/KG+ GST.
On an interesting note, we found that the open bazaar prices of LDPE GP and LLDPE were almost identical, within the range of Rs.132-133/KG+GST.

According to our analysis, there is a strong likelihood of LLDPE prices coming down once the domestic producers raise their plant operations to over 85-90 % of capacity. And, the delta between LDPE and LLDPE will widen as a result.

LDPE: RIL introduced lifting-based discounts for June'22 due to the prevalence of dull demand.

Deals concluded for LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )
1070 LA 17 : Rs.154-156
Aramco E 1970 : Rs.151-153

Open Bazaar Rates (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow  (Indian ) : Rs. 136-137
HD IM : Rs.122-124
HM Film : Rs.131-133
Imported HM : Rs. 127-129
LL Film :Rs.128-129
LD GP ( MFI : 4 Gms/10 Mins ): Rs.131-133

Purchase Opinion:  Before recommending a wise purchase decision, we bring forth the possible impact of the SUP ban, to be implemented in the country from 1 July 2022. Although, the impact of the ban on the plastic raw material bazaars is not yet clear, we believe that the buying pattern will become somewhat gloomy.

Due to the uncertainty arising out of the ban, LLDPE and LDPE processors are in a confused state of mind regarding whether to procure the raw materials or not at the current prices.
From our end, we advise HDPE (all variants) buying at the company prices. And, it will be a wise decision for LLDPE & LDPE buyers to opt for the wait & watch game, and the same time, have a close watch on all price governing factors before stepping in to procure extra inventories. We will issue Price Prediction in due course of time.

China Bazaar :
In China, the plastic raw material bazaars have not yet seen any strong demand for the PE materials. And, the dullness in the demand can be attributed to the failure of the construction industry to gain speed. Due to the lackluster demand, PE prices have remained lower in the major plastic raw material bazaars in China.

Indian Bazaar :
LLDPE: Tight availability continues to persist in Indian bazaars, prompting sellers to charge hefty premiums. Our bazaar assessment shows that the grade with the most restricted availability, and attracted the highest premium was M 26500 (RIL).

IM/Hi Flow : This grade has been sold with the highest premiums in the plastic raw material bazaars due to short supply. In the Ahmedabad bazaar, sellers sold LLDPE, having MFI of 50 Gms/10 Mins, in range of Rs.165-168/Kg +GST ( Ex- Mumbai ) Or even higher.

Film : The prices stayed firm due to active sales. During the week under review, the open bazaar prices hovered within Rs.130-131/Kg+ GST.

HDPE: There has been no change in the bazaar situation from that prevailed last week. Readers are advised to refer to our last week’s report.
However, here is a brief recap, portraying the bazaar situation this week.
The persistence of acute tightness in availability due to the ongoing maintenance shutdowns continues to prompt sellers to charge premiums, especially for Blow Molding (GPBM, MBM & LBM).
The premiums for the BM material have gone up more than 6-8% over the company price at Rs.137-138/Kg+ GST ( Ex. Mumbai ).

HD Inj. Mldg : This grade also has come under the periphery of tight availability due to supply constraints. So, premiums have resulted. This week, premiums for the grade is were within Rs.3-4/Kg over the company price in range of Rs.123-125/Kg+GST ( Ex-Mumbai)

LDPE: The persistence of dull demand prompted RIL to announce lifting based discounts for June'22. However, a minor shortage of LDPE Heavy Duty, Milk Pouch variants were reported from a few pockets of the major plastic raw material bazaars of the country.

Deals concluded of LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )
1070 LA 17 : Rs.156-158
Sabic 7019 : Rs.151-152

Open Bazaar Rate  (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow : Rs. 136-137
HD IM : Rs.122-123
HM Film : Rs.132-134
LL Film :Rs.130-131
LD GP ( MFI : 4 Gms/10 Mins ): Rs.133-135

Purchase Opinion : Considering current scenario & expected influence of other price controlling factors, HDPE & LLDPE procurement is suggested at the  current levels. But, buyers can leverage the advantage of the off-take based discount scheme for LDPE procurement. And, the Overall Polymer Procurement is advised at the current levels with a close and careful watch on all price controlling factors.

Click to Download PDF with historical Data :

Click to Download PDF with historical Data :

Indian Bazaar

HDPE : Premiums Continue on Tight Availability
The PE trading scenario in the Indian plastic raw material bazaars have remained as it was during the last week. Notably, tight availability for HDPE grades, especially Blow Molding (GPBM, MBM & LBM), has dominated the bazaars, enabling sellers to charge hefty premiums.

As we have reported in our earlier reports, the supply tightness has occurred due to the ongoing maintenance shut downs of GAIL & OPaL’s plants. In this context, we have also reported that OPaL is expected to resume operations of its plant within this month.

Contacting various buyers, we came to know that the premiums for the BM material have gone up more than 8-10% over the company price at Rs.138-140/Kg+ GST ( Ex. Mumbai ).

LLDPE: Buyers Felt the Pinch of Bazaar Premiums

Inj.Mldg/ Hi Flow :  The grade is sold at premiums at spot bazaars due to short supply.  In the Ahmedabad bazaar, sellers sold LLDPE, having MFI of 50Gms/10 Mins, in range of Rs.147-149/Kg +GST.

Film : LLDPE Film sales purchases have gone up in Indian polymer bazaars. The open bazaar prices have been assessed within the range of Rs.132-135/Kg+ GST.

Roto Mldg : The increased manufacturing of Roto molded tanks has lifted up the sales of this grade in the      Indian plastic raw material bazaars.

LDPE: Imported Grade Availability Pulls Bazaar Prices Down
High availability of imported grades and the wait-and-watch mode adopted by buyers after the recent price reduction have contributed toward price slippages for LDPE in the spot bazaars, where the MFI 7Gms/10 Mins / equivalent was with the delta of Rs.8-10/Kg from the local make.

Deals concluded of LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )

1070 LA 17 : Rs.159-160
Titan 801 YY : Rs.150-151
Aramco E 1970 : Rs.151-152

Open Bazaar Rate  (Rs/Kg, Ex Bhiwandi , Excl. GST)

HD Blow : Rs. 137-138
HD IM : Rs.120-121
HM Film : Rs.133-134
LL Film :Rs.131-132
LD GP ( MFI : 4 Gms/10 Mins ): Rs.136-137

Purchase Opinion : Considering current scenario & expected influence of other price controlling factors,  HDPE & LLDPE procurement is suggested at the company rates , while LDPE buyers can take an advantage of Price Protection scheme.

Global Trend: Assessed as stable to soft.

Last Indian Rate Revision : WEF May 11. 2022, RIL left HDPE &  LLDPE unchanged, however company slashed price of LDPE.( For detailed rate revision refer website )

Buying Pulse:
HDPE : Tight availability Takes a Toll on processors
In this week, the bazaar activities related to the HDPE material underwent no variation from the trend prevailed in the preceding week.

The continuance of tight availability for HDPE grades, especially Blow Molding (GPBM, MBM & LBM), has rendered the bazaars as a breeding ground for sellers, who capitalized upon the opportunity to charge hefty premiums.
As we have reported in our earlier reports, the supply tightness has occurred due to the ongoing maintenance shut downs of GAIL & OPaL’s plants. In this context, we have also reported that OPaL is expected to resume operations of its plant within this month.

According to our bazaar assessment, the premiums for the BM material have gone up more than 8-10% over the company price at Rs.138-140/Kg+ GST ( Ex. Mumbai ). It is needless to say, that buyers are embroiled in a chaotic situation in their raw material procurements due to the hefty premiums.

LLDPE : The bazaar situation for the LL is not different, creating premium charging opportunities for sellers, due to tight availability in plastic raw material bazaars

 Inj.Mldg/ Hi Flow :  Grade is under short supply from the domestic producers, leading to low availability in the spot bazaars. The versatile grade finds immense applications in the master batch, filler & other molding segments. Due to the tight availability, sellers have charged high premiums. A trader in the Ahmedabad bazaar reported to our editorial team that LLDPE, having MFI of 50Gms/10 Mins, was being traded in range of Rs.147-149/Kg +GST.

Film : According to traders, the Film grade saw moderate demand due to the need-based buying approach.

Roto Mldg : However, things were different for the Roto grade, which underwent tremendous sales due to the increased manufacturing of Roto moulded tanks. Usually, the manufacturing of such tanks gains momentum during summers.

LDPE : Dull offtake prevails in region
Trading of the EC grade was subdued due to the twin impacts of ample availability of imported grades and the wait-and-watch mode adopted by buyers after the recent price reduction. According to a bazaar source, the MFI 7Gms/10 Mins / equivalent was with the delta of Rs.8-10/Kg from the local make.

Deals concluded of LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )
1070 LA 17 : Rs.161-163
Titan 801 YY : Rs.152-153
Aramco E 1970 : Rs.153-154

Open Bazaar Rate  (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow : Rs. 137-138
HD IM : Rs.120-121
HM Film : Rs.132-133
LL Film :Rs.126-127
LD GP ( MFI : 4 Gms/10 Mins ): Rs.137-139

Purchase Opinion : Considering current scenario & expected influence of other price controlling factors,  HDPE & LLDPE procurement is suggested at the company rates , while LDPE buyers can take an advantage of Price Protection scheme.

Feedstock: Ethylene CFR N.E.A ( $/Mt)
Monday Opening ( 02/05/22): 1215
Friday Closing ( 06/05/22) : 1215
Week on Week Difference : Stable

China Bazaar:
Latest Overseas offers of HDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 02/05/22): 9866
Friday Closing ( 06/05/22) : 9850
Week On Week Difference : Down by 16

Latest Overseas offers of LLDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 02/05/22): 1240
Friday Closing ( 06/05/22) : 1240
Week On Week Difference : Stable

Latest Overseas offers of LDPE for CFR China Main Port ( $/Mt)
Monday Opening (02/05/22): 1630
Friday Closing ( 06/05/22) : 1600
Week On Week Difference : Down by 30

Global Trend: Assessed as stable to soft.

Last Indian Rate Revision: WEF May 5. 2022, RIL left HDPE , LLDPE & LDPE prices unchanged.

Latest Custom Exchange Rate: Custom Exchange Rate ($-INR) for imports was revised to Rs.77.05  ( -0.10 ) w.e.f  May 6, 2022, from the previous Rs 77.15 on April 22, 2022.

Buying Pulse:

HDPE : Supply Tightness Takes a Toll on Converters

All is not well with the HDPE converters in India. With the persistence of tight HDPE availability due to the ongoing maintenance shut downs of GAIL & OPaL’s plants, the converters have been forced to pay hefty premiums for HDPE grades, especially Blow Moulding (GPBM, MBM & LBM ).

Despite a thin availability of imported BL 3 and few other overseas grades, the supply tightness made Indian plastic raw material bazaars a breeding ground for sellers to chargef heavy premiums for the grades.

Taking advantage of the chaotic situation, sellers have raised their spot prices for the BM grade by 8-10% over the company price at Rs.138-140/Kg+ GST ( Ex. Mumbai ). And some sellers have raised the prices even higher, taking a toll on the buyers.

LLDPE : Manufacturing Necessities Trigger Aggressive Procurements in region.

Eventually, good news has come for plastic raw material sellers. Of late, LLDPE Film sales have picked up substantially in the Indian polymer bazaars. In a recent research by our editorial team, they came to know PE converters have discarded the wait-and-watch stance, and started buying the grade heavily.

LDPE : The buying sentiments remained much poor in LDPE variants. In order to invite buying attention, Indian Producer has declared Price Protection in LDPE off take during May'22.

Deals concluded of LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )

Feedstock:
Ethylene CFR N.E.A ( $/Mt)
Monday Opening ( 11/04/22): 1375
Friday Closing ( 15/04/22) : 1315
Week on Week Difference :   Down by 60

China Bazaar:
Latest Overseas offers of HDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 11/04/22): 1220
Friday Closing ( 15/04/22) : 1210
Week On Week Difference : Down by 10

Latest Overseas offers of LLDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 11/04/22): 1260
Friday Closing ( 15/04/22) : 1260
Week On Week Difference : Stable

Latest Overseas offers of LDPE for CFR China Main Port ( $/Mt)
Monday Opening (11/04/22): 1590
Friday Closing ( 15/04/22) : 1590
Week On Week Difference : Stable

Global Trend: Assessed as stable to soft.

Last Rate Revision: WEF 14th April '22 RIL kept PE price rolled over.

Custom Exchange Rate:  Custom Exchange Rate ($-INR) for imports was revised to Rs.76.80 (-0.10 ) w.e.f April '8 , 2022, from the previous Rs 76.90 on March 18, 2022.

Buying Pulse: Weak demand persisted for PE materials. And, the underlying reason is the prevalence of high prices amid a volatile bazaar, keeping buyers cautious of their purchases. In addition, the Ramadan festive mood also has kept the bazaar environment dull.

Revealing the ongoing bazaar scenario, some traders told our editorial team, “Demand for HDPE is stronger as compared to LDPE and LLDPE.”

The most crucial factor for the dullness in PE bazaars is the extreme pressure faced by PE processors due to their finished products losing ground due to higher prices, resulting due to higher raw material costs. As a result, the depressed buying mood has forced PE traders to cut down prices day by day to lure PE processors to buy their raw materials.

Moreover, there has been a shortage on a/c of the ongoing shutdown of GAIL & Opal. Buyers have experienced short supply of many PE variants, like HD Blow, HD Inj. Mldg, LL Film, LL Hi flow & few others.

Deals concluded of LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )
1070 LA 17 : Rs.169-170
Titan 801 YY : Rs.161-162
Aramco E 1970 : Rs.163-164

Open Bazaar Rate  (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow : Rs. 130-131
HD IM : Rs.120-121
HM Film : Rs.134-135
LL Film :Rs.126-127
LD GP ( MFI : 4 Gms/10
Mins ): Rs.144-145

Purchase Opinion: Considering the major price controlling factors & taking into account the possible influence of the recent developments, we predict stable to softer trend of PE grades. Under the influence of above possible scenarios, Polymer procurement is suggested for routine requirements.

Feedstock:
Ethylene CFR N.E.A ( $/Mt)
Monday Opening ( 04/04/22): 1405
Friday Closing ( 08/04/22) : 1385
Week on Week Difference :  Down by 20

China Bazaar:
Latest Overseas offers of HDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 04/04/22): 1260
Friday Closing ( 08/04/22) : 1260
Week On Week Difference : Stable

Latest Overseas offers of LLDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 04/04/22): 1270
Friday Closing ( 08/04/22) : 1270
Week On Week Difference : Stable

Latest Overseas offers of LDPE for CFR China Main Port ( $/Mt)
Monday Opening (04/04/22): 1620
Friday Closing ( 08/04/22) : 1630
Week On Week Difference : Up by 10

Global Trend: Assessed as stable to soft.
The imposition of lockdown in China has halted industrial activity, resulting in an increasing supply pressure on Chinese sellers.
As a result, the PE market in Southeast Asia has witnessed more re-exports from China with prices undercutting regular suppliers by $20-50/ton.

To deal with the sluggish conditions in the local Chinese bazaars, the sellers have exported their imports to Southeast Asia, where better netbacks are available.

Last Rate Revision: WEF 1st April '22 RIL increased HDPE price by Rs. 3-4/Kg , LLDPE price by Rs. 2/Kg  & LDPE price unchanged.

Custom Exchange Rate:  Custom Exchange Rate ($-INR) for imports was revised to Rs.76.80 (-0.10 ) w.e.f April '8 , 2022, from the previous Rs 76.90 on March 18, 2022.

Buying Pulse: Indian bazaars have witnessed need based buying by PE processors, who exercised caution in their procurements, refraining from excessive purchases. As such, there has been no deviation in the buying pattern that remained flat.
On the other hand, PE processors have been under the pressure of their finished products losing ground due to the raw material prices remaining at highs.PE sellers in Indian bazaars were forced to cut their prices day by day by the dormant buying trend.

Shortage in few grades : On a/c of ongoing shutdown of GAIL & OPaL, processing industry is experiencing short supply of many PE variants like HD Blow, HD Inj. Mldg, LL Film, LL Hi flow & few others.

LDPE : The Ministry of Commerce and Industry, today, has recommended imposition of Anti Dumping Duty on LDPE imports from six countries--Qatar, Saudi Arabia, Singapore, Thailand, United Arab Emirates and the US. In order to boost buying confidence- RIL has declared offtake based incentive scheme in LDPE

Deals concluded of LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )
1070 LA 17 : Rs.170-171
Titan 801 YY : Rs.166-167
Aramco E 1970 : Rs.167-168

Open Bazaar Rate  (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow : Rs. 128-129
HD IM : Rs.121-122
HM Film : Rs.135-136
LL Film :Rs.127-128
LD GP ( MFI : 4 Gms/10 Mins ): Rs.147-148

Purchase Opinion: Keeping the major price regulating factors in consideration, and taking into account the possible influence of the recent developments, we predict a stable to softer trend of the commodity prices. As such, Polymer procurement is suggested for routine requirement.

Feedstock:
Ethylene CFR N.E.A ( $/Mt)
Monday Opening ( 28/03/22): 1375
Friday Closing ( 01/04/22) : 1405
Week on Week Difference :   Up by 30

China Bazaar:
Latest Overseas offers of HDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 28/03/22): 1260
Friday Closing ( 01/04/22) : 1260
Week On Week Difference : Stable

Latest Overseas offers of LLDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 28/03/22): 1270
Friday Closing ( 01/04/22) : 1270
Week On Week Difference : Stable

Latest Overseas offers of LDPE for CFR China Main Port ( $/Mt)
Monday Opening (28/03/22): 1580
Friday Closing ( 01/04/22) : 1580
Week On Week Difference : Stable

Global Trend: Assessed as firm.

Last Rate Revision: WEF 1st April '22 RIL increased HDPE price by Rs. 3-4/Kg , LLDPE price by Rs. 2/Kg  & LDPE price unchanged.

Custom Exchange Rate:  Custom Exchange Rate ($-INR) for imports was revised to Rs.76.90 (+0.25 ) w.e.f March 18, 2022, from the previous Rs 76.65 on March 4, 2022.

Buying Pulse:In line with the global trend, Indian polymer producers chose to actuate another round of rice increment for HDPE & LLDPE grades. And, that lifted the prices to new heights, and at a time when industry is passing through tough phase of dull demand for finished products.
As a sequel to the incline in R/M prices, prices of end products escalated, resulting in limited acceptance.

Another challenging factor to the buyer community is the possible supply crunch due to the upcoming planned MTA by OPaL in April ' 22. In addition, the magnitude of uncertainty & supply constraints will intensify further more on a/c of the commencement of Ramadan from April'22

LDPE A.D.D.: The Ministry of Commerce and Industry, today, has recommended imposition of Anti Dumping Duty on LDPE imports from six countries--Qatar, Saudi Arabia, Singapore, Thailand, United Arab Emirates and the US.The Ministry has recommended imposition of the duty after carrying out an investigation to substantiate an allegation by the Chemicals and Petrochemicals Manufacturers Association (CPMAI) that RIL, the lone LDPE producer in India, suffered substantial losses due to the mentioned countries exporting the LDPE raw material to India at substantially low rates.

Deals concluded of LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )
1070 LA 17 : Rs.170-171
Titan 801 YY : Rs.166-167
Aramco E 1970 : Rs.167-168

Open Bazaar Rate  (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow : Rs. 123-124
HD IM : Rs.122-123
HM Film : Rs.133-134
LL Film :Rs.126-127
LD GP ( MFI : 4 Gms/10 Mins ): Rs.147-148

Purchase Opinion:Considering the major price regulating factors &  taking into account the possible influence of the recent developments, we predict firmer trend of the PE variants. Under the influence of above possible scenarios, Indian processors are likely to experience tight product availability in the region.Based on current outlook & expected influence of other price governing factors, Polymers procurement suggested at the company price.

Feedstock:
Ethylene CFR N.E.A ( $/Mt)
Monday Opening ( 21/03/22): 1355
Friday Closing ( 25/03/22) : 1355
Week on Week Difference : Stable

China Bazaar:
Latest Overseas offers of HDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 21/03/22): 1260
Friday Closing ( 25/03/22) : 1260
Week On Week Difference : Stable

Latest Overseas offers of LLDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 21/03/22): 1235
Friday Closing ( 25/03/22) : 1270
Week On Week Difference : Up by 35

Latest Overseas offers of LDPE for CFR China Main Port ( $/Mt)
Monday Opening (21/03/22): 1540
Friday Closing ( 25/03/22) : 1540
Week On Week Difference : Stable

Global Trend: Assessed as stable to firm.

Last Rate Revision: WEF 24th March '22 HPL kept PE price same.

Custom Exchange Rate:  Custom Exchange Rate ($-INR) for imports was revised to Rs.76.90 (+0.25 ) w.e.f March 18, 2022, from the previous Rs 76.65 on March 4, 2022.

Buying Pulse:This week, buying sentiments remained lackluster with an intention to keep inventories at low levels. Processors have lost confidence about acceptance of finished products at current levels. Dull demand, liquidity crunch & prevailing uncertainties have together forced converters to opt for cautious stand.

The magnitude of uncertainty & supply constraints will intensify further more  on a/c of  recent attack on S. Aramco's Oil facility in addition to the ongoing Russia-Ukraine war. In addition to this odd, the commencement of Ramadan from April'22 may cause supply chain disruption from Muslim countries. Another challenging factor to the possible supply crunch is the upcoming planned MTA by OPaL in April ' 22.

A.D.D. on LDPE Imports  - An Anti-Dumping Investigation concerning imports of LDPE from Qatar, Saudi Arabia, Singapore, Thailand, UAE & USA - which was extended till 31st March ' 22. Industry is eyeing on final decision /notification of GOI in regards to an imposition of Anti-Dumping Duty (A.D.D) on imports of LDPE from mentioned countries.

Deals concluded of LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )
1070 LA 17 : Rs.170-171
Titan 801 YY : Rs.166-167
Aramco E 1970 : Rs.167-168

Open Bazaar Rate  (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow : Rs. 118-119
HD IM : Rs.118-119
HM Film : Rs.130-131
LL Film :Rs.124-125
LD GP ( MFI : 4 Gms/10 Mins ): Rs.146-147

Purchase Opinion:Considering the major price regulating factors &  taking into account the possible influence of the recent developments, we predict firmer trend of the PE variants. Under the influence of above possible scenarios, Indian processors are likely to experience tight product availability in the region.

If Crude & other energy variants continue to remain bullish, the cost of commodity production will be higher. As a result, there is a possibility of the global price reference escalation, which will allow  Indian Polymer producers to hike their polymer from April 1, 2022. Based on current outlook & expected influence of other price governing factors, Polymers procurement suggested at the company price.

Click to Download PDF with historical Data:

Feedstock:
Ethylene CFR N.E.A ( $/Mt)
Monday Opening ( 07/03/22): 1265
Friday Closing ( 11/03/22) : 1365
Week on Week Difference :   Up by 100

China Bazaar:
Latest Overseas offers of HDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 07/03/22): 1240
Friday Closing ( 11/03/22) : 1270
Week On Week Difference : Up by 30

Latest Overseas offers of LLDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 07/03/22): 1230
Friday Closing ( 11/03/22) : 1260
Week On Week Difference : Up by 30

Latest Overseas offers of LDPE for CFR China Main Port ( $/Mt)
Monday Opening (07/03/22): 1540
Friday Closing ( 11/03/22) : 1570
Week On Week Difference : Up by 30

Global Trend: Assessed as firm.

Last Rate Revision: WEF 10th March '22 RIL increased HDPE price by Rs.6/Kg, except HD Film/ HM Pipe. The producer also raised its LLDPE by Rs.7/Kg & LDPE by Rs.6/Kg in the price revision.

Custom Exchange Rate ($-INR) for imports was revised to Rs.76.65 (+0.60 ) w.e.f March 4, 2022, from the previous Rs 76.05 on Feb.18, 2022.

Buying Pulse:This week, Indian Open bazaar opened on a strong note with bullish buying sentiments for HD Raffia,LL/HM Film, HD Blow, LL Hi Flow, LD Lamination & most of PE variants. Processors were able to reserve reasonable quantities from all available options. In line with global price movements, Indian Producers followed the trends, offering consecutive rise for the third time, for March'22, with high magnitudes.

However, processors found it difficult to pass phenomenal & frequent hikes of R/M prices to finished products as resistance started building. Meanwhile, marginal decline in Crude & other energy variants has become a matter of concern for Polymer stockists & importers. Most of bazaar participants have stepped in to Profit Booking Phase & are willing to minimize their inventories before premium grounds to null.

Deals concluded of LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )
1070 LA 17 : Rs.171-172
Titan 801 YY : Rs.165-166
Aramco E 1970 : Rs.167-168

Open Bazaar Rate  (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow : Rs. 120-121
HD IM : Rs.120-121
HM Film : Rs.131-132
LL Film :Rs.126-127
LD GP ( MFI : 4 Gms/10 Mins ): Rs.146-147

Purchase Opinion: Considering current scenario & expected influence of other price controlling factors, Polymers buying is advised at the company price.

Feedstock:
Ethylene CFR N.E.A ( $/Mt)
Monday Opening ( 31/01/22): 990
Friday Closing ( 04/02/22) : 1005
Week on Week Difference :  Up by 15

China Bazaar: On account of national holidays at China from 1st Feb'22 to 8th Feb'22, Polymer’s rate will be made available from next week.

Bazaar Watch:
Global Trend: Assessed as stable to firm.

Last Rate Revision: WEF 1st Feb '22 RIL increased HDPE & LDPE price by Rs.1/Kg. and LLDPE price by 2/Kg.

Latest Custom exchange rate: Custom Exchange rate ($-INR) for imports was revised to Rs.75.75 (+0.55 ) wef February 4th, 2022, from the previous 75.30  on Jan.21, 2022.

PE Bazaar Watch: Processors decided to make replenishment in anticipation of further increases (If any), however  routine demand was observed from finished products end users.Most of PE variants are easily available from local producers & open bazaar sources. Buying sentiments remained healthy in LL Film , LD GP & few other grades.

An Anti-Dumping Investigation concerning imports of LDPE from Qatar, Saudi Arabia, Singapore, Thailand, UAE & USA - GOI has  extended investigation date till 31st March ' 22

Deals concluded of LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )
1070 LA 17 : Rs.162-163
Titan 801 YY : Rs.153-154
Aramco E 1970 : Rs.154-155

Open Bazaar Rate  (Rs/Kg, Ex Bhiwandi , Excl. GST)

HD Blow : Rs. 105-106
HD IM : Rs.102-103
HM Film : Rs.110-111
LL Film :Rs.107-108
LD GP ( MFI : 4 Gms/10 Mins ): Rs.134-135

Purchase Opinion: Considering above scenario & status of other trend drivers, Polymer buying is advised at current levels.

Ethylene CFR N.E.A ( $/Mt)
Monday Opening ( 17/01/22): 955
Friday Closing ( 21/01/22) : 930
Week on Week Difference :  Down by 25

China Bazaar
Latest Overseas offers of HDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 17/01/22): 1220
Friday Closing ( 21/01/22) : 1220
Week On Week Difference : Stable

Latest Overseas offers of LLDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 17/01/22): 1200
Friday Closing ( 21/01/22) : 1220
Week On Week Difference : Up by 20

Latest Overseas offers of LDPE for CFR China Main Port ( $/Mt)
Monday Opening (17/01/22): 1555
Friday Closing ( 21/01/22) : 1550
Week On Week Difference : Down by 5

Bazaar Watch:
Global Trend: Assessed as stable to firm. On a/c of incline in energy & feed stock values, Polymer Producers started to announce February'22 shipment offers mostly at higher levels compared to the last month.

Last Rate Revision: WEF 20th Jan '22 RIL increased HDPE & LDPE price by Rs.1/Kg. and LLDPE price by 1.5/Kg.

Latest Custom exchange rate: Custom Exchange rate ($-INR) for imports was revised to Rs.75.30 (-0.10 ) wef  January 21, 2022, from the previous 75.40  on Jan.7th, 2022.

PE Bazaar Watch:
This week, demand continued supporting upward sentiments in commodity.
Industry participants understood healthy demand dynamics & started building inventory in LLDPE Film , LDPE Lamination & few other grades.Routine  buying pulse reported in HDPE & HM variants.

Deals concluded of LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )
1070 LA 17 : Rs.162-163
Titan 801 YY : Rs.152-153
Aramco E 1970 : Rs.152-154

Open Bazaar Rate  (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow : Rs. 105-106
HD IM : Rs.102-103
HM Film : Rs.104-105
LL Film :Rs.105-106
LD GP ( MFI : 4 Gms/10 Mins ): Rs.131-132

Purchase Opinion: Considering current outlook in addition to status of other price controlling elements, Polymer buying is advised at current levels.

Feedstock:
Ethylene CFR N.E.A ( $/Mt)
Monday Opening ( 10/01/22): 1025
Friday Closing ( 14/01/22) : 980
Week on Week Difference :  Down by 45

China Bazaar
Latest Overseas offers of HDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 10/01/22): 1220
Friday Closing ( 14/01/22) : 1230
Week On Week Difference : Up by 10

Latest Overseas offers of LLDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 10/01/22): 1170
Friday Closing ( 14/01/22) : 1190
Week On Week Difference : Up by 20

Latest Overseas offers of LDPE for CFR China Main Port ( $/Mt)
Monday Opening (10/01/22): 1510
Friday Closing ( 14/01/22) : 1530
Week On Week Difference : Up by 20

Bazaar Watch:
Global Trend: Assessed as stable to firm.

Last Rate Revision: WEF 13th Jan '22 RIL left HDPE , LLDPE & LDPE price unchanged.

Latest Custom exchange rate: Custom Exchange rate ($-INR) for imports was revised to Rs.75.40 (-0.50 ) wef  January 7, 2022, from the previous 75.90  on Dec. 17, 2021.

Bazaar Watch:
PE : Local buying sentiments remained poor with need base buying approach.Further emergence of pandemic with rising nos. of covid cases has became major concern of Industry.Processing industry has lost confidence due to prevailing uncertainties & facing numerous issues.
To re build buying interest  & raise conference levels, Indian Producers may announce lifting based incentive scheme for PE variants.

LDPE :
Anti Dumping Duty on LDPE:
GOI  has announced an extension in investigation of imposing A.D.D.(Anti Dumping Duty ) on imports of LDPE from S.Arabia, Qatar, Thailand, Singapore, USA & UAE. The Ministry has extended time until 31st January 2022 for completing the investigation & submitting final findings.
Bazaar participants are waiting for the final outcome to be announced on 31st Jan'22, which will further decide the direction of the commodity.

Deals concluded of LDPE EC ( Rs./Kg + GST , Ex Ahmedabad )

1070 LA 17 : Rs.161-162
Titan 801 YY : Rs.150-151
Aramco E 1970 : Rs.151-152

Open Bazaar Rate  (Rs/Kg, Ex Bhiwandi , Excl. GST)

HD Blow : Rs. 101-102
HD IM : Rs.100-101
HM Film : Rs.104-105
LL Film :Rs.100-101
LD GP ( MFI : 4 Gms/10 Mins ): Rs.128-129

Purchase Opinion: In a view of the above scenario with an expected effect of other price governing factors , Polymer Procurement is suggested.

Feedstock:
Ethylene CFR N.E.A ( $/Mt)
Monday Opening ( 03/01/22): 1025
Friday Closing ( 07/01/22) : 1025
Week on Week Difference :  Stable

China Bazaar
Latest Overseas offers of HDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 03/01/22): 1210
Friday Closing ( 07/01/22) : 1220
Week On Week Difference :  Up by $ 10

Latest Overseas offers of LLDPE for CFR China Main Port ( $/Mt)
Monday Opening ( 03/01/22): 1170
Friday Closing ( 07/01/22) : 1170
Week On Week Difference : Stable

Latest Overseas offers of LDPE for CFR China Main Port ( $/Mt)
Monday Opening (03/01/22): 1490
Friday Closing ( 07/01/22) : 1510
Week On Week Difference : Up by $ 20

Bazaar Watch:
Global Trend: Assessed as stable.

Last Rate Revision: WEF 1st Jan '22 RIL left HDPE & LLDPE price unchanged., However LDEC down by Rs.5/Kg & other LDPE price reduce by Rs.3/Kg.

Latest Custom exchange rate: Custom Exchange rate ($-INR) for imports was revised to Rs.75.40 (-0.50 ) wef  January 7, 2022, from the previous 75.90  on Dec. 17, 2021.

Buying Pulse:
LDPE EC:
During 1st week of Jan'22, demand cycle improved notebally, however such approach was short lived. On a/c of positive buying response, an open bazaar price witnessed upward correction.

Anti Dumping Duty on LDPE: GOI  has announced an extension in investigation of imposing A.D.D.(Anti Dumping Duty ) on imports of LDPE from S.Arabia, Qatar, Thailand, Singapore, USA & UAE. Ministry has extended time until 31st January 2022 for completing the investigation & submitting final findings*.Industry is keenly waiting for the final GOI notification to be announced on 31st Jan.'22.Industry participants believe that final findings will be in favor of local producer, which in turn invite the imposition of A.D.D. on imports of LDPE from mentioned 6 countries.In anticipation of such action, Open bazaar importers, traders,have already lifted their offers.

Deals concluded of Indian & Imported make  (Rs./Kg + GST , Ex Ahmedabad )

1070 LA 17 : Rs.162-163
Titan 801 YY : Rs.150-151
Aramco E 1970 : Rs.152-153

HDPE & LLDPE:
The buying pulse remained undertone as bazaar operators adopt a more cautious stance to observe the impact of the Omicron variant of the COVID-19 on the commodity.Assumptions are made to see improvements in demand from 2nd wk of Jan.'22.

Open Bazaar Rate  (Rs/Kg, Ex Bhiwandi , Excl. GST)
HD Blow : Rs. 102-103
HD IM : Rs.99-100
HM Film : Rs.105-106
LL Film :Rs.101-102
LD GP ( MFI : 4 Gms/10 Mins ): Rs.130-131

Purchase Opinion: In a view of above outlook with consideration of other price deciding factors, Polymer buying is suggested at current levels.