POLYMER BAZAAR

Click to Download PDF with historical Data : 

Propylene Monomer :
USA : Cents/Lb
32.75-35.50 ( Up )

Europe : €/Mt
860 - FD NWE ( Up )
845 - CIF NWE ( Up )

Asia-  US$/MT
895 : CFR China ( Down )
865 : FOB Korea ( Down )

USA : FAS Houston basis - last overseas notations were reported lower at $ 950 - 960/MT

Europe: FD NWE basis-Current import offers quoted stable at Euro 1180 - 1190/MT

Middle East: FoB basis- Latest offers assessed stable at US$ 890 - 900/MT

F.E.A: CIF Basis - prevailing quotations assessed stable at US$ 920 - 930/MT

China Bazaar : The presence of a thin trading atmosphere in the major plastic raw material trading hubs in China contributed to the price lowering mentality of traders. So, the spot prices have drifted downwards to around 7,860 Yuan/MT.

SEA: The prospect of China’s manufacturing activities to gain steam after the elimination of COVID curbs has raised the overall sentiments in the SEA.

The import homo-PP market in the region have stayed on a stable to firmer note. Moreover, there has been a fear pulse, arising from possible supply tightness, propagating across the bazaars of the region.

Due to the fear, many processors resorted to R/M inventory building, strengthening PP demand.

India:
Latest overseas offers were assessed higher when compared with those in the previous week. We have already reported that Bookings of Chinese origin PP Raffia were executed at USD 1040-1050/MT for late Jan.'23 shipments, on CIF NS/Mundra basis.

Latest Rate Revision: With effect from 5 Jan.'23, Indian Polymer producers have rolled over their ex-works 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: Processors, on experiencing limited off-take of finished products, preferred curtailing their R/M procurements.
As such, demand has turned slow. And, need-based purchases were observed.

On the other hand, the pricing trend is northwards, occurring on account of insufficiency. Due to plant issues, producers have released lesser volumes of PP Random & a few copolymers, leading to shortages.
Processors also have maintained moderate R/M inventory levels due to unsatisfactory end-product sales.

Purchase Opinion: Our assessment reveals that the commodity pricing trend is heading towards a firmer note. Therefore, we advise R/M procurement at the current price levels

Propylene Monomer :
USA : Cents/Lb
33.00-32.75 ( Up )

Europe : €/Mt
850 - FD NWE ( Up )
840 - CIF NWE ( Up )

Asia-  US$/MT
900 : CFR China ( Down )
870 : FOB Korea ( Stable )

USA : FAS Houston basis - last overseas notations were reported stable at $ 1020 - 1030/MT

Europe: FD NWE basis-Current import offers quoted higher at Euro 1190 - 1200/MT

Middle East: FoB basis- Latest offers assessed higher at US$ 890 - 900/MT

F.E.A: CIF Basis - prevailing quotations assessed higher at US$ 920 - 930/MT

China Bazaar :  Willingness to purchase R/M is in a weak state in Chinese bazaars. Year-ending exercise is the primary agent to the mentality, according to bazaar participants. Therefore, the spot PP prices have fallen to around 7,610 Yuan/MT in the major pockets of that country.

Indian Bazaar :
Latest overseas offers were assessed higher as compared with those in the previous week. As per our study- bookings of Chinese PP Homo Raffia concluded at USD 1060-1070/Mt for Jan.'23 shipments.

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

Buying Pulse: The widespread suspicion of the local producers likely to push up their ex-works prices in the next price revisions has driven converters to R/M bazaars to procure as much R/M as possible at the current prices.

As a result, sellers saw a good demand improvement. But readers should not equate the prevailing demand to aggressive levels. That is because aggressiveness in the buying intensity was absent.

Again, fresh supplies in the PP segment were nil in the bazaars due to plant issues. And, if the circulating buzz is to be believed, IOCL is preparing to restart fresh material supply in the coming days.The twin impact of improving demand and supply tightness was reflected in open bazaar premiums of Rs 4-6/Kg.

Purchase Opinion: Taking into account the overall bazaar scenario, expected strategies of local producers & other price governing factors- PP prices are likely to be INCREASED in range of Rs.2-4/Kg wef 1 Jan.'23.We advise R/M procurement at the current price levels. 

Propylene Monomer :
USA : Cents/Lb
32.00-32.75 ( Stable )

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

Asia-  US$/MT
905 : CFR China ( Stable )
870 : FOB Korea ( Down )

Europe: FD NWE basis-Current import offers quoted higher at Euro 1190 - 1200/MT

Middle East: FoB basis- Latest offers assessed higher at US$ 880 - 890/MT

F.E.A: CIF Basis - prevailing quotations assessed higher at US$ 910 - 920/MT

Indian Bazaar
Latest Overseas Offers Strengthening demand and the status of the global price references have enticed overseas exporters to hike their offers to the Indian bazaar this week from those in the preceding week.

Latest Rate Revision: in line with the overseas exporters, the local producers have lifted their ex-works prices by Rs 2/Kg.

Buying Pulse: PP processors have jumped into R/M procurement in aggressive mode. The northward journey of the global prices, and the act of the local producers indulging in price lifting exercise have triggered a buying spree among converters to build up their r/m inventories before the prices go further up.

We have reported in our daily bazaar commentary broadcasts about the acute shortage of the Random, CP, and other grades, raising the bazaar premiums to Rs 2-4/Kg.

Global Bazaar Status  In the global bazaar circuit, polymer consumption will wane in the next week due to the Christmas and New Year celebrations.

Purchase Opinion: The indications of the ruling bazaar scenario, and other price governing parameters point towards the continuance of the upward price journey. Hence, we advise buying at the current levels.

Propylene Monomer :
USA : Cents/Lb
29.0-29.25 ( Up )

Europe : €/Mt
905 - FD NWE ( Down )
880 - CIF NWE ( Down )

Asia-  US$/MT
895 : CFR China ( Up )
860 : FOB Korea ( Up )

USA : Strong PP trading activity prevailed in the major plastic raw material bazaars in the US. As per our bazaar information, processors have purchased heavily to build up their raw material inventories before the Christmas and New Year holidays. Due to the ample availability, the spot prices fluctuated a little. Latest overseas offers assessed stable in range of USD 1040 - 1050/Mt FAS Houston

Europe: FD NWE basis-Current import offers quoted higher at Euro 1260 - 1270/MT

Middle East: FoB basis- Latest offers assessed higher at US$ 860 - 870/MT

F.E.A : CIF Basis - prevailing notations assessed higher at US$ 890 - 900/MT

China : Of late, the import homo-PP offers in China have gone up. And that is a signal of international producers getting opportunities to dispose off their stocks at hand.

In the R/M bazaars of China, inactive buying enthusiasm prevailed. So, some PP producers have slashed their ex-works prices to attract buyers. But, the overall mood among the processors is wait-and-watch. According to a trader, PP was sold in the major bazaars at around 7,590 Yuan/MT.

India Bazaar:
Latest Overseas Offers: This week international offers have gone up on account of improved demand and global price references drifting upwards.According to our sources, PP offers have inched up to USD 990-1000/MT CIF NS.

Latest Rate Revision : With effect from 8 Dec.'22, Indian local producers rolled over their PP Prices.

Buying Pulse : During the week under consideration, we observed an improvement in the demand. But, that was not up to the mark but we observed room for further improvement.
Again, the global price references have a good role to play. If they go up, the local producers will also lift their prices proportionally.

Purchase Opinion : Looking at current scenario & other price governing factors - Polymer Procurement is advised .

Click to Download PDF with historical Data : 

Propylene Monomer :
Europe : €/Mt
910 - FD NWE ( Down )
885 - CIF NWE ( Down ) 
Propylene contract price for Dec'22 has been revised lower by € 30/Mt (From Nov'22) at € 1170/Mt - FD NWE.

 Asia-  US$/MT
890 : CFR China ( Up )
855 : FOB Korea ( Up )

USA Bazaar : During the week, PP trading in the major US plastic raw material bazaars was moderately active. Open bazaar sellers have had ample stocks with them. And, some of them lowered their spot prices to attract buyers. *Latest overseas offers assessed stable in range of USD 1040 - 1050/Mt FAS Houston

Europe: FD NWE basis-Current import offers quoted higher at Euro 1250 - 1260/MT

Middle East: FoB basis- Latest offers assessed higher at US$ 860 - 870/MT

F.E.A : CIF Basis - prevailing notations assessed higher at US$ 880 - 890MT

China :  The recent rise in Propylene prices has raised the sentiments among PP buyers and sellers in China.
Due to the reversal in the feedstock, PP futures in the DCE exhibited a rising performance.
Again, the prospects of manufacturing activities resuming have activated the urge among PP converters to secure imported PP material. As a result, overseas exporters have almost depleted their stocks.

India Bazaar:
Latest Overseas Offers: An improved buying tendency, rising global price references were the primary rationale for the overseas offers going up to USD 970-980/MT CIF NS.

Latest Rate Revision : With effect from 1 Dec.'22, Indian local producers rolled over PP Prices, and withdrew the lifting based discount scheme.

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

Buying Pulse: An air of confidence is blowing throughout the PP bazaars in India. Due to the stability in PP prices after a period of relentless falls, converters were in a buying spree. From what we saw, it appears the demand is likely to strengthen further in the coming days. And, the bazaar dynamics also carried the message of a possible price upturn in the near term.  

Readers will recall that we have already alerted them in our previous report that everything now depends on the Chinese bazaar dynamics—the latest developments in China will redirect global bazaars, including India.

If demand improves in China, it will act as a solid ground for Indian producers to revise their prices upwards.

Purchase Opinion: Based on the price governing factors and the overall bazaar climate, polymer procurement is advised at current levels.

Click to Download PDF with historical Data :

Propylene Monomer :
Europe : €/Mt
 930 - FD NWE ( Down )
 895 - CIF NWE ( Down )

  Asia-  US$/MT
  875 : CFR China ( Up )
 840 : FOB Korea ( Stable )

USA :Vigorous sentiments arising in the days ahead of the ThanksGiving Day has resulted in plastic raw material traders in the US seeing stronger demand for the PP material. Capitalizing on the stronger demand, the traders have lifted their spot prices.Latest overseas offers assessed stable in range of USD 980 -1005/Mt FAS Houston.

Europe: FD NWE basis-Current import offers quoted lower at Euro 1240 - 1250/MT

Middle East: FoB basis- Latest offers assessed lower at US$ 855 - 865/MT

F.E.A : CIF Basis - prevailing notations assessed lower at US$ 870 - 880MT

China Bazaar: During our assessment of the Chinese PP bazaars this week, we observed subtle indications that pointed out possibilities of the bazaars seeing good days in the coming days.

International PP suppliers have continued to formulate game plans to incite processors in China to import their offers.

The converter community continued to resist the current import offer levels. So, the international exporters have collected bids to figure out the acceptance levels among the processor community in China.

That shows that the there is a strong likelihood of the international exporters pulling down their offers to the acceptance levels in the next few days. In the event of which, bulk buying might take off.

The re-emphasis of lockdowns in China has again eroded the buying confidence but that is likely to be temporary. There was a renewed optimism among the bazaar participants on account of the govt’s plans to fuel economic growth. Of late, banks in China have decided to offer loans to the stagnant real estate industry. And that means, construction activities would again restart, necessitating different inputs, including polymer-based items.
Due to the expected activities in the China bazaars, optimism is rife among SEA producers.

During the recent past, many producers sold good volumes to the Chinese buyers. And, some producers have held back their allocation to China in the hope of the prices going up in that country in the next few days.

A dependable analysis of the PP price curve in the coming days could be made from the expected price trajectory of Propane prices.

Contract prices for Propane, a key input for PP production, are expected to rise in Dec 2022. So, the implications are clear—PP producers will have to push up their PP prices to cover up the rising input costs.
As such, expecting PP prices in China to go up from 1 Dec 2022 makes sense

India Bazaar:
Latest Overseas Offers: The changing bazaar weather in India seems to be visible in the recent overseas offers, which have moved up to USD 965-970/MT CIF NS. The rising global price references, and stronger buying tendency are the drivers of the offer price movement.

Buying Pulse: The buying pulse have come to life after the Indian producers assuring price stability, and rolling over PP prices from 24 Nov 2022.

Continuing their buyer inciting measure implementations, this week, RIL has announced a lifting-based incentive scheme under head of " X " & " Y "-- in range of Rs 2-3.5/Kg for November'22 off-take.

The resumption of buying is, however, not up-to-the mark as processors are also watching the bazaar developments. But, there has been an air of belief blowing over the Indian PP bazaars that carried the message of a possible PP price rebounding process in action.
From what we saw, it seems that the buying interest can strengthen in the coming days.
Readers will recall that we have already alerted them in our previous report that everything now depends on the Chinese bazaar dynamics.

If demand strengthens in China and other global bazaars, the commodity prices will start an upward journey, and processors will see a U-turn in the pricing strategy of the local producers

Purchase Opinion: Based on the price governing factors and the overall bazaar climate, we advise buyers to monitor all price governing factors closely. For now,  polymer procurement is advised at current levels

Propylene Monomer :
Europe : €/Mt
 935 - FD NWE ( Up )
 900 - CIF NWE ( N/C )

  Asia-  US$/MT
  860 : CFR China ( Up )
  830 : FOB Korea ( Up )

USA Bazaar : Hazy economic outlook seems to have prompted PP converters to lower their raw material purchases. So, PP trading has slowed down in the major plastic raw material bazaars in the US. And, the prices have stayed flat. Recent import offers quoted stable at US$ 990 -1010/MT FAS Houston

Europe: FD NWE basis-Current import offers quoted lower at Euro 1290 -1300/MT

Middle East: FoB basis- Latest offers assessed higher at US$ 880 - 885/MT

F.E.A : CIF Basis - prevailing notations assessed stable at US$ 890 - 910/MT

China Bazaar : In the recent twist of turns, there was an uptick in PP demand in Chinese plastic raw material bazaars, thanks to the depreciation in the Yuan against the USD.

Due to the currency depreciation, the focus of converters on the domestic bazaars has strengthened as import costs were moving up on account of the stronger USD.

Taking the opportunity of the gradual resumption of buying, some South Korean producers lowered their PP offers, and tried to close deals below USD 900/MT CFR China.
 
The Vietnam bazaar was quick to react to the demand uptick in China. Sellers raised their PP prices slightly in the hope of the buying to gain momentum due to the demand reversal in China. However, the low off-take of end-products has brought a question mark to the optimism.  

India Bazaar
Latest Overseas Offers: The global price references, and the absence of strong buying in India seem to have motivated the overseas producers to lower their offers to USD 965-970/MT CIF this week
.
Custom Exchange Rate: Effective 18 Nov.'22, GoI has slashed the customs exchange rate to 82.60/USD (-1.20).

Buying Pulse: This week, the PP bazaar in India turned interesting to watch. Defying all odds arising from the weak finished-products sales and uncertain raw material price dynamics, PP converters have returned to plastic raw material bazaars to procure raw materials.

The credit goes to none other than the producers. The prudent game of the producers has eventually transferred the bazaar control into their hands.

Their successive confidence building measures in the form of early bird discount schemes, price cuts, etc. have succeeded in lifting the buyers' mood. And, that have driven the buyers to bazaars, improving the demand landscape.

Out of the buyer attracting initiatives by the producers, the Early Bird withdrawal scheme from 15 Nov.'22 deserves special mention—it played the most dominant role in strengthening the buying momentum.

Notably, buyers should not take for granted that the prices will stay at the current levels. Demand is learnt to have improved in China, and if that persists, the commodity prices are likely to take a U-turn.

Purchase Opinion: Based on the price governing factors and the overall bazaar climate, we advise buyers to keep a close watch on commodity trends. Remarkably, open bazaar may witness price correction on a/c of improved buying sentiments.

Propylene Monomer :
. Europe : €/Mt
 910 - FD NWE ( Up )
 875 - CIF NWE ( Up )
  Propylene contract price for Nov.'22 has been revised higher by € 20/Mt (From Oct. '22) at € 1200/Mt - FD NWE

  Asia-  US$/MT
  850 : CFR China ( Up )
  825 : FOB Korea ( Up )

USA Bazaar : PP sellers in the major plastic raw material bazaars in the US experienced strong demand due to the buyers buying actively to build their raw material inventories. Moreover, the prices were almost steady due to high stocks with traders. Recent import offers quoted lower at US$ 1000 -1030/MT FAS Houston

Europe: FD NWE basis-Current import offers quoted higher at Euro 1300 -1360/MT.

Middle East: FoB basis- Latest offers assessed  as lower at US$ 870 - 880/MT

F.E.A : CIF Basis - prevailing notations assessed lower at US$ 890 - 910/Mt

India: The prevailing condition of the PP bazaars in India is known to all participants—free-falling prices, inactive buying tendency, bearish outlook, etc.—that signal no go news for either the buyers or producers.

In such circumstances, the overseas offers moved along the obvious path—downwards—from the levels in the previous week.

Our assessment shows that the latest import offers (Nov 2022 shipments) for Homo Raffia and IM grades slid to the range of USD 980-990/MT CIF NS, Mumbai. The Indian producers have found themselves in a confusing situation, no different from that for the overseas exporters.

A slew of challenges hindered the decision-making process of the Indian producers due to which they indulged in an unusual price-reducing spree. Readers will recall that the country’s producers slashed their PP prices by Rs 7/Kg on Nov 10,2022, following the reduction on the 1st of the month.

The successive price reductions have unleashed shock waves among the buyer community, putting them in more and more confused states.  

Buying Pulse:  The chaotic situation among buyers has done no good to the producers. Unable to figure out what to do, in the context of raw material procurements, converters found it wise to put all extra procurements on hold for the time being.

In response, the producers played a situation-specific game—offering price stability assurance until the month-end. Again, we remind our readers that there are also buyer-attracting measures in place in addition to the price stability assurance. And, these are:
• Lifting-based discount scheme for Nov’22
• An Early-Bird Discount for purchases during 1 Nov.'22 to 15 Nov.'22 ( RIL).

Converters have already been severely hit by unsatisfactory end-product sales. As such, their raw material procuring mood has been grim. Parallel to the converters and producers, the open bazaar sellers, traders, stockiest & importers have found no way to deal with the sluggish demand other than pricing their sales below the company rates, and offering imported variants at a notable delta of Rs.3-5/Kg with Indian makes.
 
Purchase Opinion: Based on the price governing factors and the overall bazaar climate, we advise buying as per immediate requirements only.

Propylene Monomer :
 Europe : €/Mt
 875 - FD NWE ( Up )
 845 - CIF NWE ( Up )

   Asia-  US$/MT
  China: 845 CFR ( Down )
  South Korea: 835 FOB ( Down)

 USA Bazaar : PP purchases have strengthened substantially after a brief weakening of demand. Converters bought the raw material to stock their raw material inventories. At the same time, there were concerns of the global economy moving towards a recessionary phase. Recent import offers quoted lower at US$ 1005-1025MT FAS Houston

Europe: FD NWE basis-Current import offers quoted higher at Euro 1285-1290/MT. Propylene contract price for Nov.'22 has been revised higher by € 20/Mt (From Oct. '22) at € 1200/Mt - FD NWE

Middle East: FoB basis- Latest offers assessed  as lower at US$ 850-855/MT

F.E.A : CIF Basis - prevailing notations assessed lower at US$ 870-875/Mt

SEA: In the entire SEA bazaar circuit, PP producers have had to beat around the bushes to find potential buyers for their export cargoes. In the region, demand has stooped to low levels with buying interest fading among converters—posing grave challenges for suppliers to find buyers.

Our reporter from Indonesia has reported that converters were not at all interested in purchasing the raw material. So, overseas exporters have lowered their offers to below the USD 1,000/MT mark. But that did not work because processors were not ready to shell out anything above USD 900/MT.

India:  The demand status in the Indian bazaars is no different from the neighbouring ones. So, overseas exporters found no other options but the pull down their offers by USD 10-15/MT from those in the previous week.

The latest import offers (Nov’22 shipments) for PP Homo Raffia & IM grades slid to the range of US$ 1075-1080/MT CIF NS,Mumbai.
On the other hand, Indian producers found themselves in a similar position as that for overseas exporters.To deal with the slipping global price references, lower import offers and inactive buying tendency, Indian producers lowered their PP prices by Rs 3/Kg in their price revisions on 1 Nov 2022.

CurrencyImpact On 4 Nov 2022, the GoI lowered the customs exchange rate to 83.80/US$ (-0.10).

Buying Pulse:   The price reduction by the local producers did not work. Subsequently, the producers have unleased a series of buyer-attracting initiatives, comprising:
• Lifting-based discount scheme for Nov’22
• An Early-Bird Discount for purchases during 1 Nov.'22 to 15 Nov.'22 ( RIL)

Interestingly, the repeated initiatives of local producers to inject buying propensity, by all means, have had a counter effect, as that eroded the buying confidence among processors.  Resultantly, converters have become extra cautious in their procurements, and most of them have set into motion a wait-and-watch policy, putting any extra procurements on hold.

Again, the MoU customers were constrained to lift their committed quantities every month. Even such customers refrained from lifting anything beyond their committed quantities, and have been waiting for right time to step into procurement process.
The prolonged uncertainty in R/M price movements is not the only retardant to the procurement activities.

Processors have been in a grim state arising on account of unsatisfactory end-product sales—weakening their raw material buying tendency.

On the other hand, the open bazaar sellers, traders, stockiest & importers have found themselves in a panic situation, posed by the sluggish demand. They tried to sell their stocks below the company rates, and offered imported variants at a notable delta of Rs. 4-6/Kg with Indian makes.

Purchase Opinion: Based on the price governing factors and the overall bazaar climate, we advise buying as per immediate requirements, and at the current levels. If bearishness in buying sentiments turns further- local Producers may come up with a Price Protection scheme to boost buying confidence.

China: The downtrend in the PP bazaar continued in the Chinese bazaars due to reduced purchases by converters. Due to the sluggish purchases, the spot prices have fallen to below 8,000 Yuan/MT.

A South Korean producer offered homo PP at USD 870/MT CFR China, and that elicited some import bookings.

USA : PP buying has shown an improvement from that in the previous week. At the same time, there was ample availability. And the spot prices stayed flat.

SEA: The lack of buying interest has incited producers to lower their offers.

In Vietnam, a South Korean producer offered the Yarn and IM grades lower by USD 30/MT from the previous reduction to USD 980/MT.

However, the exporter could not close deals as buyers were not willing to pay anything above USD 900/MT.

India: The recent overseas offers slipped by USD 10-15/MT in comparison with those in the previous week.

Latest import offers for PP Homo Raffia & Inj.Mldg. grade assessed lower at US$ 1090-1100/Mt for CIF NS,Mumbai.( Nov.'22 Shipments )

The slippages in the offers were due to the impacts of the weak demand in the global bazaars and downward traversal of global price references.

Indian Producers have kept their prices flat with effect from 27 Oct 2022.

Currency Impact: The record weakening of the INR 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.

BuyingPulse: Bazaars are likely to resume operations from Monday next after Diwali celebrations.
We would like to remind our subscribers that MRPL has announced price protection to invite buying attention.

Purchase Opinion : Based on the price governing factors and the overall bazaar climate, we advise buying as per immediate requirement at the current levels. We will also issue the price prediction in due course of time.

Click to Download PDF with historical Data :

Energy Price Forecast: Goldman Sacs has published its Crude Oil price forecast for 2022 and 2023.
According to the American bank, Brent Oil prices will rise to USD 104 /bbl from USD 99/bbl in 2022. And, the prices are predicted to rise to USD 110/bbl from USD 108/bbl in 2023.

Propylene Monomer Price Regional Highlights

Europe: €/Mt
The propylene contract price for Oct.'22 has been revised lower by € 50/Mt (From Sept. '22) at € 1180/Mt - FD NWE.

PP Offers-Key International Bazaars

USA: Recent import offers quoted lower at USD 1070-1080/MT FAS Houston. Slow PP trading has ruled the major plastic raw material bazaars in the US. And that arose due to converters lessening their raw material purchases in the prospect of an economic slowdown.
With abundant availability, there were enough signs of the prices to undertake a southward journey.

Europe: FD NWE basis-Current import offers edged higher at Euro 1275-1280/MT.

Middle East: FoB basis- Latest offers assessed  as stable at US$ 920-925/MT

Turkey: CFR Turkey - Latest overseas offers assessed as higher at the US $1170-1180/MT

SEA: From what we have heard from bazaar sources, several medium-scale PP converters in Vietnam have stocked comfortable raw material inventories that can be used up to mid-December. So, they have postponed their raw material purchases for now. Instead, they have preferred monitoring the China bazaar developments after the Golden Week holidays before making any purchase decisions.

As such, soft demand has prevailed in the Vietnam bazaar. Again, competitive South Korean import homo PP offers have restricted the local sellers from stepping into any aggressive pricing strategies.

China: PP sellers have remained hopeful of seeing a strong demand after the bazaar takes off post the Golden Week holidays.

South Asia: The latest overseas PP offers have exhibited stability at USD 1150-1160/MT CIF NS.

Currency Impact: The record depreciation of the INR against the USD has emerged as a major cause of concern in polymer pricing matters.

As we have reported about the possibility of a significant rise in the Customs Exchange Rate in our earlier reports, the GoI has raised the rate to an all-time high, effective from 7 Oct 2022. Accordingly, importers must shell out INR 82.45(+2.05) for every USD.

Latest Price Revision: Indian producers have rolled over their PP prices, seemingly due to the status of the global price references.

Buying Pulse: In the absence of active end-product offtakes, converters have preferred to purchase the raw material on a need basis.

The resultant soft demand conditions have prompted sellers to adopt the profit booking approach to attract buyers.
However, we expect that the buying may increase in the coming days due to the festive demand before the Diwali festival.

Purchase Opinion: Considering the major price-controlling factors & taking into account the possible influence of recent developments, we predict a stable to firmer trend for all PP grades. At PB, we suggest subscribers to monitor all price governing factors carefully & advise them to procure material at the company rate.

Propylene Monomer Price Regional Highlights
Europe : €/Mt
495 - FD NWE ( Up )
470 - CIF NWE ( Up )

Asia-  USD/MT:
China:  900 CFR ( Stable )
South Korea: 880 FoB (Stable)

PP Offers-Key International Bazaars

USA: Recent import offers quoted lower at US$ 1140-1160/MT FAS Houston. PP buyers have now become careful in procuring raw material because they apprehend a global economic slowdown. As such, demand remained moderate in the major PP bazaars in the US. On the supply side, there was ample availability.

SEA :PP processors in Vietnam has shed their reluctance to buy. So, they have returned to the plastic R/M bazaars to procure the raw material to cater to their factory needs. Interestingly, the resumption in buying has occurred during a time when PP prices have shown a firmer trend.

According to the information we gathered, there was good number of import transactions involving both direct and re-export cargoes. However, buyers were selective in the pricing matters.

We have further elicited from a reputed polymer trading house in region that a Korean producer exported a cargoes of PPHP IM &  Raffia variants by offering USD 15-20/MT lifting based discount from the earlier prices at USD 1045-1050/MT CIF basis.

China : We have gathered some real-time information of the condition of the Chinese PP bazaars during the week under review.

Seller waited anxiously to dispose off their stocks as much as they can. But their expectation did not materialize due to the prevalence of weak demand conditions.
But, the sellers remained hopeful of achieving sales due to the National Holidays being round-the-corner. Traditionally, buying increases before the onset of the holidays because processors prefer building up their raw material inventories before going on leave.

In this context, we would like to remind PolymerBazaar subscribers that world's major processing hub China bazaar -is going to remain closed due to the National Holidays ( Golden week - 1st to 7 th Oct.'22 ). Again, this may create pressure on polymer's global demand trend as Chinese participation in global buying will be reduced marginally.

Zhongjing Petrochemical has cut its export offers of PPHP,for the second time this week, by USD 15/MT to USD 1075/MT FoB China. Bazaar participants attribute the price reduction to weaker RMB against the US$ at D.C.E.

We also believe that the tighter competition from re-export cargoes also played a role in the price reduction.  

South Asia –In India, the latest overseas offers have remained stable  in the range of USD 1150-1160/MT  CIF NS,Mumbai.This week, in line with global price references, RIL choose to roll over PP prices with effect from 22 Sept.'22.

Buying Pulse :Hindered by unsatisfactory purchases of PP end-products, the processors have curtailed their PP purchases.
The curtailment of the raw material purchases has unleashed a weak demand scenario in the country’s plastic raw material bazaars.
Sellers, and stockist have tried to deal with the soft demand conditions by reducing their premiums, adopting the profit booking approach.

On the local producers’ end, the supply remained tighter due to their stance of entertaining supply requests from MoU holder customers only.
In spite of the producers’ stance, the open bazaar premiums have vanished. So, most of PP grades are available at company price except PP TQ & Random variants.

Purchase Opinion : Considering the major price controlling factors & taking into account the possible influence of the recent developments, we predict a stable trend for all PP grades. At PB, we suggest subscribers to monitor all price governing factors carefully & advise to procure material at company rate.

Propylene Monomer Price Regional Highlights
Europe : €/Mt
490 - FD NWE ( Up )
465 - CIF NWE ( Up )

Asia :
China:  895 USD/MT CFR ( Up )
South Korea: 875 USD/MT FoB (Up)

PP Offers-Key International Bazaars

USA: FAS Houston levels- Recent import offers quoted stable at US$ 1200-1210/MT. Spot PP trading moderated in the major US bazaars due to a spike in the prices. Due to the intense trading in the last week, the availability has dwindled, prompting traders to lift their spot prices.

Europe : FD NWE basis-Current import offers drifted lower to Euro 1260-1270/MT.
Middle East : FoB basis- Latest offers drifted upwards to US$ 920-930/MT.
 Turkey : CFR Turkey - Latest overseas offers spiked higher to US$1100-1140 /MT.

SEA : Due to the higher availability vis-à-vis demand, many PP producers have reduced their plant operating rates to restrict a hit on their profit margins. Offers quoted in the range of US$ 1000-1010/Mt.

China :  PP : In China, a string of purchases has improved PP demand to moderate levels. And, that has restricted the price fall. The bazaar scenario also shows that the demand will move further upwards. The latest PP prices in the major Chinese bazaars were at around 8255 Yuan / MT.

South Asia –In India, the latest overseas offers have drifted upwards successively in the range of US$ 1150-1160/Mt.

And the continues upward drift in the offers has prompted RIL to raise its PP prices by Rs 3/Kg with effect from 15 Sept.'22.

Buying Pulse :The buying pulse in the Indian bazaars has taken a hit from the raise in domestic prices. Processors have already been in a confused state arising from the slowdown of their finished products, higher interest rates, and stiff competition.
Under these circumstances, the increment in domestic prices further reduced the buying appetite, resulting in low demand conditions.
However, the current state of demand affairs is not expected to stay long because the demand is likely to erupt again due to the festive seasonal forces.

Purchase Opinion : Considering the major price controlling factors & taking into account the possible influence of the recent developments, we predict a firmer trend for all PP grades. At PB, we suggest subscribers to step into PP procurement at current levels.

Click to Download PDF with historical Data : 

Propylene Monomer Price Regional Highlights

Europe : Contract Price remained lower for Sept.'22 by Euro 165/MT to Euro 1230/MT - FD NWE
China:  895 USD/MT CFR ( Up )
South Korea:  875 USD/MT FoB (Up)

PP Offers-Key International Bazaars

USA: Recent import offers quoted stable at USD 1270-1290/MT FAS Houston. PP sellers  in the US plastic raw material bazaars saw robust sales due to strong demand conditions. And, we expect the demand to stay strong in the coming week.

Europe: Current import offers drifted lower to Euro 1350-1360/MT FD NWE

Middle East : Latest offers drifted upwards to USD 890-895/MT FoB

Turkey :  Latest overseas offers spiked higher to 1090-1130 USD/MT CFR Turkey

SEA : Most PP plants have been operated at lower across the SEA region due to squeezed margins. As such, the supply has declined. But, that has not created a short-supply condition, instead it has acted as a balancing agent with the weak demand.

China :  With the moderate improvement in the downstream demand, overseas suppliers have raised their PP offers to the Chinese bazaars. We came to know thar a Vietnamese PP offer surfaced in the China bazaars with USD 60/MT increase from the previous value. In another instance, we have come to know about a buzz of a Qatari producer hiking its PP offer to China by USD 15/MT.
Again, the recent demand improvement has resulted in the supply coming lower. Given the recent dynamics, we expected the demand to improve further in the next week. According to a Chinese trader, PP was sold at around 7988 Yuan/MT.

South Asia –In India, the aggressive demand for PP that prevailed in the plastic raw material bazaars due to the anticipation of a price increment on 8 Sept’22 retraced its path due to the unexpected announcement of the price roll over on that day.

But, we consider the demand slowdown to be a temporary phenomenon. The actual demand is still there due to the need for the processors to supply a steady stream of raw materials to their factories operating at higher rates due to active off-take of their end-products on account of the pre-festival demand.

We expect that the buying will again gain momentum from the next week due to a slew of factors.The local polymer producers have opted for restricted supply to M.O.U. customers only. In addition to supply restrictions, the companies are dividing processors' monthly offtake on a weekly basis & not in a mood to entertain any extra buying inquiries.

With effect from 8 Sep 2022, the domestic producers have continued the previous prices, driven by the global bazaar status.

However, overseas offers for India, on CIF NS basis, have maintained the upward drifting trend this week also.

Plant News:
RIL: SEZ PP plant shutdown in mid-September, 2022 to carry out maintenance work for 20-21 days
IOCL: Maintenance turnaround of its Panipat plant from mid-Sept 2022, for 65 days

Buying Pulse :As we already said, PP demand has temporarily slowed down due to the price stability during the last price revision by domestic producers. But, buying will again spring up from the next week.  Again, PP availability and hence the prices are on the verge of traversing on an upward trek due to the plant shutdowns.

Purchase Opinion : Considering the major price controlling factors & taking into account the possible influence of the recent developments, we predict a firmer trend for all PP grades. At PB, we suggest subscribers to step into PP procurement at current levels.

Propylene Monomer Price Highlights
Europe : Propylene contract price for Sept.'22 has been revised lower by Euro 165/MT from Euro 1230/MT - FD NEW for September’’22.

China:  880 USD/MT CFR (stable)
South Korea: USD 865 USD/MT FoB (stable)

PP Offers-Key International Bazaars

USA: Recent import offers quoted lower at USD 1270-1290/MT FAS Houston

Europe: Current import offers Stayed stable at Euro 1395-1405/MT FD NWE basis.

Middle East : Latest offers Assessed higher at USD 885-890/MT FoB basis.

Turkey :  Latest overseas offers are Quoted stable at US$ 1080-1120 /mt CFR Turkey.

SEA : In SEA, bazaar sentiments have firmed up on account of signs of demand revival in Sept, and tightening supply. However, some of the bazaar participants have shed their bullish outlook due to the European Central Bank’s decision to raise their interest rates.

China :  The recent strengthening of demand in China has retraced its path due to bearish sentiments among PP buyers, emanating from the dip in crude oil prices. Buyers have now preferred to monitor the bazaar movements instead of purchasing. As per our sources, PP prices in the main bazaars of that country have drifted down to around 8040 Yuan / MT.

South Asia - India : In India, PP demand is in an increasing mode, driven by the need to buy. The off-take of the end-products has increased due to the rising demand due to the festive season being round the corner. As such, the processors have vigorously procured the raw material to cater to their growing factory needs.

With effect from 1 Sep 2022, the domestic producers have kept their prices stable at the previous levels, following the movements of the global price references. However, overseas offers for India, on CIF NS basis, have edged up this week also.

In plant news: Reliance Industries Ltd (RIL) is heard to have planned  to shut its SEZ PP Plant in mid-September, 2022 to carry out maintenance work for 20-21 days. In addition, IOCL has also scheduled a maintenance turnaround of its Panipat plant from mid-Sept 2022, for 65 days.

Apparently, PP prices are likely to go up from mid-Sept due to supply inadequacy posed by the shutdowns.

Buying Pulse :Buying has gained stronger momentum. Processors have shed their wait-and-watch stance, which they pursued during the last few week, and started procuring the raw material, driven by the rising demand for end-products, global price corrections, and the possibility of upsurge in the prices in the days ahead due to the upcoming plant shutdowns.  The shortage of a few PP variants has emerged due to the stronger demand vis-à-vis restricted supply .

Mumbai  Open Bazaar-( Rs/Kg +GST )
PP Raffia : 101.00
PP Lami. : 107.75
Film -TQ : 104.50
Inj. Mldg.: 103.25
Co  Poly. : 107.75
Random : 114.25

Purchase Opinion : Considering the major price controlling factors & taking into account the possible influence of the recent developments, we predict a firmer trend for all PP grades. At PB, we suggest subscribers to step into PP procurement at current 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.

USA : PP stocks with sellers in the plastic raw material bazaars in the US has increased due to the ample supply, and moderate demand. Due to the situation, sellers have lowered their spot prices to attract buyers.

Turkey :  PP prices in the plastic raw material bazaars of Turkey has exhibited a slight uptick, driven by the twin forces of improved buying interest and dwindling availability. From the Q2 of this year to H1 August, offers were on a downward trek due to soft demand conditions, and global uncertainties.

SEA :
Indonesia:  The uptrend in the import homo-PP prices was short-lived due to the receding global demand.

Vietnam :  Dwindling local supply in Vietnam has pushed PP prices higher in the plastic raw material bazaars in that country. And, imported homo-PP raffia and injection offers were assessed higher at USD 1060-1080/ CIF MT.

China :  PP supply has tightened in the plastic raw material bazaars in China on account of plant shutdowns. On the demand side, the purchases have improved. So, we rule out any price falls in the near term. Given the current bazaar conditions, PP prices are likely to swing upwards in the coming days. Our sources have reported that the spot PP prices have hovered at around 8100 Yuan/MT.

South Asia
India : PP demand in India has improved due to the increased purchases by processors, experiencing higher off-take of their end-products. So, the processors have enhanced their raw material procurement to run their plants at higher operating rates.

In plant news: Reliance Industries Ltd (RIL) is heard to have planned  to shut its SEZ PP Plant in mid-September, 2022 to carry out maintenance work for 20-21 days. In addition, IOCL has also scheduled a maintenance turnaround of its Panipat plant from mid-Sept 2022, for 65 days.

Buying Pulse : Indian processors have figured out that the prices have bottomed out. And, they have been running their factories with low inventories, maintaining a wait-and-watch stance during the last couple of weeks.
But, they have changed their stance with the global price correction  & rebound of the prices, which have boosted their buying confidence.

In addition, the upcoming plant shutdowns by Indian producers along with excepted demand recovery on account of the forthcoming festive season have added to the buyer's confidence. Therefore, active transactions are taking place in the bazaars.

Mumbai  Open Bazaar ( Ex Bhiwandi- Rs./Kg + GST)
PP. Raffia :   99.25
PP Lami. : 106.25
Film -TQ : 103.00
Inj. Mldg.: 102.00
Co  Poly. : 106.25
Random : 112.00

Purchase Opinion : RIL is expected to announce an amount of "X" & "Y" discount scheme ( applicable for Aug.'22 offtake ) in next 1- 2 days.Looking at the current scenario & other price controlling factors- Polymer Procurement is advised at current levels.

Click to Download PDF with historical Data :

Global Bazaar: Strengthening PP demand across the key Asian bazaars has influenced international producers to push up their offers.

China Bazaar: A moderate improvement in PP demand in China aroused the spirits of bazaar participants, And, the spot  prices remained stable at around 8,150 Yuan/MT. In the DCE, the spot and future prices were at  8016 Yuan/MT, and 7730 Yuan/MT, respectively.

Indian Bazaar
Latest Overseas Offers: This week, the international PP offers were  quoted higher in comparison with last week. PP Homo Raffia & IM offers were priced at $ 1115-1120/MT.

Latest Rate Revision: RIL rolled over the prices with effect from 18 August’22

Custom Exchange Revision: With effect from 19th Aug' 2022, the Indian Customs Department has raised the customs exchange rate for imports by 0.25 points to INR 80.50/USD. And, the department has implemented same increment to exports, to INR 78.80/USD.

Buying Pulse:Active purchasing was seen in the Indian PP bazaars due to the increasing need for feeding the end-product factories. The demand for PP end-products has started to rise due to the ensuing festive season. As such, processors have raised their factory operating rates, necessitating more raw material procurements.

Furthermore, the rise in international offers also has incited the processors to step up their raw material purchases. In addition, RIL has given assurance to the industry participants that it will not offer any price reduction or protection until August 2022 end.

So, the processors have taken for granted that prices have bottomed out. And, the uptrend in global bookings, and the transition of the prices from stable to firmer track point to possible price increments in the near term.

At Mumbai Open Bazaar Deals concluded in recent past  ( Rs/Kg + GST )
PP Raffia : 99.75
PP Lami. : 106.50
Film -TQ : 103.00
Inj. Mldg.: 101.50
Co  Poly. : 106.50
Random : 111.00

Purchase Opinion: We see almost nil prospect of any price reduction due to the latest bazaar dynamics. And, the prices seem to have bottomed out. However, if the demand drops again due to any reason, the producers might think of pulling down the prices. So, we advise procurement at the current prices, taking into consideration the current scenario and all price drivers.

Global Bazaar
In the key Asian plastic raw material bazaars, PP demand has shown a strengthening trend of late. And, that has sent a ripple effect on the price movements. The international offers have firmed up due to the demand improvement.  

China
In line with the other Asian bazaars, PP demand in China underwent a moderate improvement. However, the domestic prices remained stable at around 8,200 Yuan/MT. And, the supply was adequate.

India
Latest Overseas Offers: This week, the international PP offers were quoted higher at USD 1090/MT CIF NS in comparison with the previous week.

Echoing the global price reference status, import offers PP Raffia & IM grades gained the incremental values of USD 1090 -1100MT.

Latest Rate Revision : RIL rolled over the prices with effect from 11 August’22

Buying pulse:
The ripple effect of demand recovery in the major Asian bazaars has caught up with Indian bazaars.

We came to know that local producers and trading lobbies in India have started receiving buying leads, indicating the demand to strengthen in the coming days.

The resumption of buying and the upward drifts in the international offers have also signaled that PP prices in India have bottomed out, and the prices are on the verge of moving upwards.

On the domestic producers’ part, they played a wise game by keeping their PP prices stable to arouse a buying tendency among processors, waiting for the prices to reach the lowest levels.

However, the demand did not reach the full capacity during this week due to the festive mood arising from the Rakhi festival, and Independence Day ahead.  But the succeeding days are expected to see stronger demand, throughout the third quarter. Traditionally, PP demand increases before the Diwali festival.  

Mumbai Open bazaar price ( Rs:Kg + GST )
PP Raffia : 98.75
PP Lami. : 104.50
Film -TQ : 102.00
Inj. Mldg.: 100.25
Co  Poly. : 105.50
Random : 112.00

Purchase Opinion:
At PolymerBazaar, It seems that prices have bottomed out at current levels & chances of price reduction are very less unless demand drops again. So, we advise procurement at the current prices, taking into consideration the current scenario and all price drivers.

  Click to Download PDF with historical Data :         

China Bazaar:
SEA PP bazaars have undergone a reversal of the trend in the recent past. Our sources have reported PP prices have started to ride on a rising wave after the reduction of the ample availability due to the sales of many cargoes in China by international suppliers.

Furthermore, our sources have said that many PP processors in China have resumed building raw material inventories in the anticipation of the demand for their end-products picking up in the coming days.  

Hence, PP demand in China has shown an uptick.A reflection of the firming up trend was observed in the Indonesian bazaar, where a local producer revised its PP prices upwards, driven by the reversal of the trend.

India Bazaar:

Latest Overseas Offers: PP Homo Raffia & IM grades were assessed lower at USD 1080-1090/MT on CIF Nhava Seva,Mumbai basis.

Last Rate Revision:  With effect from 4 Aug.'22 - RIL Rolled over PP Price for domestic bazaars.

Custom Exchange Rate :  With effect from 5th Aug'2022, the Indian Custom Dept. has revised the rate as the following:

 For imports: Rs.80.25 (-0.70)/USD
 For exports: Rs.78.55 (-0.65)/USD

Buying Pulse :
In a stark difference, the Indian PP bazaar has remained aloof from the rest of the SEA bazaar in terms of any improvement in the demand.

The restriction to any arousal of the demand has emanated from the processors failing to get their finished products selling. So, they preferred producing lesser products, and curtailed their raw material purchases.

Again, the significant reduction of Rs.7/Kg for PP grades by the domestic producers has added fuel to the carefulness of buyers in their raw material procurement. They ensured abstaining from extra purchases until the price settles as a certain level.

In order to arouse buying propensity, Indian Producers have announced lifting-based discount scheme for August'22.The plunge in the domestic prices has unleashed panic selling among stockists, traders. So, they acceded to the whims of buyers.

On account of abundant availability, the prices of PP Homo Raffia & Inj. Mldg grades in open bazaars declined to two digit levels in the range of Rs.96-97/Kg+ GST Ex Mundra.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)
PP Raffia ( Indian) :  99-100
Imported Raffia : 96-97
PP lami. :  110-111
Film -TQ :  101-102
Inj. Mldg.:  99-100
Co  Poly. :  110-111
Random :  116-117

Purchase Opinion: The opposing trends of sharp price fall in India and gradual improvement in demand in SEA have created an uncertainty in the succeeding price movements. So, buying in bulk is not advisable. In view of the uncertainty, we advise buyers to purchase for immediate requirement. But, they should not fail to assess all price governing factors closely before making critical decisions of polymer procurement.

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.

Click to Download PDF with historical Data :

Crude :
The recent media reports publishing the possibility of the Fed’s interest rate hike in July and September this year has further curbed the buying enthusiasm among converters. The expectation of an economic recession to follow through as a result of the possible interest rate hikes also impacted the demand for crude oil. With the sharp drop in the oil demand, crude oil prices have plummeted below USD 100/barrel.

Feed Stock: Propylene assessed lower on CFR China & FOB Korea basis.( Pl. Refer to PDF Report)

China: Amid uncertainties doing the rounds, PP buying underwent some improvement in China. Processors have stepped up their procurements to meet the needs of their factory productions. As a result of the resurgence of buying, the spot prices have rebounded to around 8316 Yuan / MT. The impact of the renewed buying has also been seen in the Sept 2022 futures, which have risen but again fallen below the 7,920 Yuan/MT mark.

Overseas offer for PP Raffia was reported at USD 1070-1080/MT CFR China Main Port. However, the demand is likely to wane in the coming days. And, in that case, the spot prices will fall again.

India : The latest international PP offers on CIF India basis were assessed marginally lower. For PP Homo Raffia & Inj. Mldg, the offers were quoted at USD 1250-1260/MT on CIF NS basis.

Last Rate Revision: With effect from 14 July 2022, Indian polymer producers have slashed their prices by Rs.3/kg. In addition, the producers offered price protection from the arouses a buying spirit among converters in a pessimistic atmosphere.

Demand: The price protection scheme has not been successful in increasing buying among processors. The main retardant to buying has been the slowdown in the purchases of PP finished products. And, that has forced the converters to operate their factories at lower rates, necessitating lesser raw material, hence lower demand for PP in bazaars. Again, the fear of an economic recession has also restricted converters from increasing their production of finished products.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)
PP Raffia :  108-109
PP Lami. :  116-117
Film -TQ :  112-113
Inj. Mldg.:  111-112
Co  Poly. :  116-117
Random :  123-124

Purchase Opinion: Given the ruling scenario, buyers must pay extra attention and monitor all price governing factors to make critical decisions of PP procurement at current levels. For now, buying is advised, keeping the Price Protection advantage in the calculation.

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
This week both—spot and futures—have displayed a falling trend. While, the spot prices fell below the RMB 8500 /Mt mark, the Sept 2022 futures plummeted to the  RMB 8300/Mt mark.

Outlook:
Despite the peak season is round the corner, the demand has not picked up due to the hovering fears of an economic recession. Converters preferred buying raw materials on need basis, keep the bazaar demand low. The overall bazaar sentiment is negative.

India : The latest international PP offers on CIF India basis were assessed lower compared with those for the previous week.

Last Rate Revision: With effect from 7 July 2022, Indian polymer producers slashed their prices by Rs.2/kg. In addition, the producers offered price protection from the date to inject buying propensity among converters.

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.

Demand: In line with the international bazaars, demand for PP has waned in Indian bazaars. And, that has arisen on account of the reduction in the off-take of finished products, and the prospect of an imminent recession.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)
PP Raffia :  111-112
PP Lami. :  119-120
Film -TQ :  116-117
Inj. Mldg.:  112-113
Co  Poly. :  118-119
Random :  125-126

Purchase Opinion : Given the ruling scenario, buyers must pay extra attention and monitor all price governing factors to make critical decisions of PP procurement at current levels. For now, buying is advised, keeping the Price Protection advantage in calculation.

Crude : This week the risk of the possibility of an imminent economic downturn due to the recent hike in interest rates (we have covered the impacts in our earlier reports),and crude oil prices slipping below USD 105/bbl have created a pessimistic outlook among converters. And, the impact was visible in both spot and future bazaars.

China Bazaar
DCE Spot & Future : While the spot PP prices fell below 8,500 Yuan/MT, the futures drifted downwards to the historic low of 8,300 Yuan/MT.

Scenario : The global PP bazaar dynamics is reverberating across the Chinese plastic raw material bazaars. With the uncertainty hovering in the crude oil price movements, converters have become careful in their manufacturing activities. So, they are limiting their production. And, at the same time, they preferred procuring raw materials as per their daily needs, creating slow demand conditions in the plastic raw material bazaars.

However, PP demand is expected to improve from the current states in the coming days, given the expected increase the production volumes of PP converters.

India Bazaar
In the Indian bazaars, demand is low. And, the latest international offers for CIF NS assessed lower when compared with previous week.

Due to the poor demand hovering in the PP bazaars, Indian producers seem to have rolled over their prices in the preceding price revision to induce a buying confidence among converters.

INR Depreciation : However, the latest plunge of the INR to the historic low of 79 against the USD, and increase in the customs exchange rate are expected to prompt domestic buying as their cumulative effect will push landed costs of imports higher.

The weak PP demand has been due to the inactive sales of the finished products by processors, who were waiting for the outcome of the July 1, 2022 price revision. Since the prices were rolled over, buying is expected to improve moderately.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)
PP Raffia :  114-115
PP Lami. :   121-122
Film -TQ :  119-120
Inj. Mldg.:  115-116
Co  Poly. :  120-121
Random :  127-128

Purchase Opinion : Given the ruling scenario & expected influence of other price governing factors, buying is suggested at the current price levels.

Global Bazaar: The US has imposed sanctions on a network of companies of the UAE, China, and Iran for helping the export of Iran origin petrochemicals. Readers will recall that the US had imposed sanctions on Iran, restricting oil-based product exports, due to adherence to nuclear program. The fallout could be the global bazaars getting deprived of Iranian petrochemical products. Again, there has been no sign of any easing of the Russia-Ukraine war, continuing to impart uncertainties in the global economies. 

China Bazaar:
The global economic indicators, pointing towards a possible recession arising out of the recent interest rate hikes in the US and other European countries, have shown its effect in the PP bazaars of China. In a conversation with a Chinese raw material trader, our editorial team came to know that the demand for PP has become low due to the off-season phenomenon. And, the apprehension of a possible recession squeezed the demand further.
The trader did not see any prospect of demand improvement in the near term.

Our assessments show both the spot and future PP bazaars fell during the week under review. While, the spot bazaar plummeted below 8,500 Yuan/MT, the future PP bazaar fell to the 8,300 mark. There has been a bearish sentiment prevailing all throughout the PP bazaars in China.

India Bazaar:
The status of the PP bazaars in India is similar to the Chinese bazaars in terms of the demand pattern. Of late, a slew of forces has emerged in the Indian PP bazaars that started dampening the demand. PP item makers have experienced sluggish off-takes of their finished products. So, the converters have refrained from any extra purchases.

SUP : The government notification of the ban on SUP from 1 July 2022 has become a major cause of worry for makers of PP based spoon, carry bags, disposables, etc. In the initial phase, the SUP industry will take time to adjust to the ban, and that may reduce the raw material consumption.

The trend of premium charging by PP sellers has vanished from the bazaars this week. In contrast, the sellers offered discounts of Rs 1-2/KG to woo buyers. And, stockists have tried their best to liquidate their stocks at the current price levels as they lost confidence in the stability of the prices.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)
PP Raffia :  114-115
PP Lami. :   121-122
Film -TQ :  119-120
Inj. Mldg.:  115-117
Co  Poly. :  120-121
Random :  127-128

Purchase Opinion:
Looking at the current state of affairs in the Indian PP bazaars, and the corresponding impact on the bazaar dynamics in the days ahead, we advise processors to opt for a wait & watch policy until the prices become stable at any levels. And, we further advise converters to buy the commodity on the basis of their immediate needs.
If the bazaar situation continues to remain the same, Indian Polymer Producers may be forced to offer price cuts on their 1 July'22 price revisions.We will issue Price Prediction in due course of time- Readers are requested to keep referring our all posts.

China Bazaar :
Finally, the dull days in the PP bazaars are over. Parallelly, the wait-and-watch game of buyers has also ended. With the manufacturing activities resuming in China after the relaxation of the lockdown norms, PP procurement has been increasing to feed the factories.

As a result, the pessimistic sentiment prevailed among the bazaar participants has evaporated and an optimistic sentiment started rolling out among them. Given the strengthening of PP buying in the major region, international producers have hiked their PP prices by USD 5/MT, igniting the buying spark among PP converters.

In the recent developments, the local as well as export sales of homo PP have rebounded after the all-time lows in 2022, due to the slowdown caused by the lockdown. Notably, the increasing local sales has reduced export availability in Chinese plastic raw material bazaars.

During the slowdown phase in the last couple of weeks, Chinese homo PP exports were losing out in the key global regional bazaars, such as SEA, and Latin America due to the competitively priced South Korean cargoes. Apparently, the spot PP availability in Chinese bazaars is expected to decline, and the prices are likely to start a northward journey.

Indian Bazaar:
The global optimistic wind has also blown over the Indian PP bazaars. But that failed to arouse the full  buying spirit among Indian PP converters.

Given the indications in place, we, at PB, expect that the prices have touched the floor, and may start rebounding from the current levels. An analysis of the current state-of-affairs of PP converters in India by our editorial team shows that they are seeing dull demand for their finished products. So, they are operating their plants at low levels, necessitating lesser PP purchases, contributing to the lackluster bazaar environment. In fact, the processors are waiting for the demand for their end products to revive.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)
PP Raffia :  114-115
PP Lami. :   119-120
Film -TQ :  115-116
Inj. Mldg.:  114-115
Co  Poly. :  120-121
Random :  126-127

Future Trend & Purchase Opinion: We, at PB, expect that PP prices are going to rebound in the coming days due to the international bazaar effect. Therefore, we advise buyers to start replenishing PP stocks in their inventories for future use from now on.

China Bazaar -

Indian Bazaar: In India, plastic raw material traders have experienced muted selling even after the domestic producers slashing their prices in their last revisions. The underlying reason behind the show is the “Wait & Watch” policy adopted by the converters, who are also waiting for the prices to settle at reasonable levels.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)

Latest overseas offers of PP Raffia/ & Inj Mldg were assessed lower at US$ 1400-1410/Mt for CIF NS, India .

Last Indian Rate Revision: WEF May 12 ' 22, RIL reduced price by Rs.3/Kg.

Buying Pulse:
In the Indian plastic raw material bazaars, PP buying has remained dull. We, at PB, have analyzed the bazaar trends, and came up with two reasons.

One, before the price fall, PP converters purchased the raw material at significantly high prices. And, that led them to raise their end-product prices. Subsequently, the converters saw lesser sales of their end-products due to higher prices. As a result, they operated their plants at low rates, and waited to sell off their existing inventories. Therefore, they purchased lesser PP from the bazaars, which saw weak demand as a result.

Two, with the onset of the lockdown in China, manufacturing activities came to a standstill in that country, and automatically, PP demand worsened. To deal with the PP inventories, sellers in China exported the material at competitive offers to India & other neighbouring countries countries. Consequently, imported variants of PP become flooded in Indian bazaars at lower prices. And, that compelled Indian producers to lower their ex-works prices. On the other hand, buyers have adopted a wait-and-watch stance, waiting for the prices to settle down at a certain level. Both the factors are the fundamental reasons for the weak PP demand prevailing in Indian bazaars. 

Again, there is another trend taking place that is likely to pull PP prices further down. Taking a cue from Chinese sellers, many sellers in SEA have exported the material to India, leading to an overstock situation.  To inject a buying propensity, Indian producers offered lifting based incentive schemes for May'22. Company also introduced  Price Protection scheme to boost buying confidence.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)
Raffia:  Rs.120-121
Film : Rs.121-122
Lamination : Rs.125-126
Inj.Mldg : Rs.120-121
PP Co Polymer : Rs. 125-126
Random : Rs.129-130

Purchase Recommendation : Considering the major price controlling factors & taking into account the possible influence of the recent developments, we predict a softer trend for all PP grades. In a view of current scenario, Polymer processors are requested to opt for Smart buying at current levels. Moreover, buyers should negotiate for the best price before putting money in their procurements. 

Click to Download PDF with historical Data :

Feedstock:
Propylene CFR China ( $/Mt)
Monday Opening ( 02/05/22): 1140
Friday Closing ( 06/05/22) : 1140
Week on Week Difference : Stable

China Bazaar:
PP Spot Bazaar ( RMB/MT)
Monday Opening ( 02/05/22): 8830
Friday Closing ( 06/05/22) : 8760
Week On Week Difference : Up by 70

Latest Overseas offers of Raffia/IM for CFR China Main Port ($/Mt)
Monday Opening ( 02/05/22): 1280
Friday Closing ( 06/05/22) : 1280
Week On Week Difference : Stable

Global Trend: Assessed as soft.

Latest overseas offers of PP Raffia/ & Inj Mldg were assessed lower at US$ 1425-1435/Mt for CIF NS, India

Last Indian Rate Revision: WEF May 5' 22, RIL left PP price unchanged.

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

Buying Pulse:
Dull off-take of PP based plastic end products has eroded the raw material purchasing appetite for the converters. So, the buying activities remained dull during the week under review.

In fact, stocks of imported materials have been increasing with sellers. And, interestingly, the Indian PP bazaar has turned into a competing space for overseas suppliers. Since the starting of April, competitive offers from China and the Middle East have been arriving to the domestic bazaars, moderating the prices.

Remarkably, other overseas suppliers also have joined the bandwagon to export PP to India at more competitive prices. And, this is likely to moderate the prices further while calming down the bazaar environment in the coming days.  Indian petchem producers have stepped in to boost the buying propensity among PP converters. The producers have offered lifting based incentive schemes for May'22.

However, if  situation continue to persists, the producers will be compelled to either slash the prices or offer Price Protection in the near future.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)

Click to Download PDF with historical Data :

Feedstock:
Propylene CFR China ( $/Mt)
Monday Opening( 18/04/22): 1155
Friday Closing( 22/04/22) : 1155
Week on Week Difference : Stable

China Bazaar:
PP Spot Bazaar ( RMB/MT)
Monday Opening ( 18/04/22): 8790
Friday Closing ( 22/04/22) : 8860
Week On Week Difference : Up by 70

Latest Overseas offers of Raffia/IM for CFR China Main Port ($/Mt)
Monday Opening ( 18/04/22): 1250
Friday Closing ( 22/04/22) : 1260
Week On Week Difference : Up by 10

Global Trend: Assessed as soft.

Latest overseas offers of PP Raffia/ & Inj Mldg were assessed lower at US$ 1480-1490/Mt for CIF NS, India

Last Indian Rate Revision: WEF April 21' 22, HPL left PP price unchanged.

Latest Custom Exchange Rate: Custom Exchange Rate ($-INR) for imports was revised to Rs.77.15  (+0.35 ) w.e.f April '22, 2022, from the previous Rs 76.80 on April 8, 2022.

Buying Pulse: ( An approach of Panic Selling )

The PP price fall across global bazaars have failed to trigger buying activity in the Indian bazaars. Instead, plastic processors have continued purchasing cautiously.  

The downfall in overseas offers along with the slipping crude oil prices have inflicted the apprehension that PP prices in international bazaars are going to slide further. So, buyers have adopted a wait-and-watch policy, restricting from purchasing the plastic raw material in excess of their immediate requirements.

In a bid to boost buying sentiments and sell off their produce, Indian producers have announced price protection along with off-take based discount scheme for the month of April'22.

In a discussion with a reputed PP converter about his raw material procurement policy in the current bazaar environment dominated by uncertainty, he said, “As a manufacturer, we cannot take risks that can negatively impact our business during the current environment when the prices are falling. Although the price protection scheme is in place, we aren't  confident that price will  stay on a flat curve till the month end. There is the like hood of the local producers discontinuing the price protection and announce fresh price cuts, and again start another round of price protection. We have lessons from the past when we booked materials under price protection but producers subsequently lowered prices, entailing losses for us.

So, the message is clear—there will be no bulk purchases until the bazaar settles down with certainty.  

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)

Raffia:  Rs.126-127
Film :Rs.130-131
Lamination : Rs.132-133
Inj.Mldg : Rs.127-128
PP Co Polymer : Rs. 131-132
Random : Rs.136-137
Thermoforming : Rs.132-133

Purchase Recommendation: Considering the major price controlling factors & taking into account the possible influence of the recent developments, we predict a softer trend for PP variants. And, there is sufficient room for price negotiation as traders are trying to conclude deals. Under the influence of above possible scenarios, Polymer Procurement is advised for routine consumption. And, buyers should take advantage of the bazaar environment to negotiate for the best price.

Feedstock:
Propylene CFR China ( $/Mt)
Monday Opening ( 11/04/22): 1160
Friday Closing ( 15/04/22) : 1155
Week on Week Difference : Down by 10

China Bazaar:
PP Spot Bazaar ( RMB/MT)
Monday Opening ( 11/04/22): 9883
Friday Closing ( 15/04/22) : 9883
Week On Week Difference : Stable

Latest Overseas offers of Raffia/IM for CFR China Main Port ($/Mt)
Monday Opening ( 11/04/22): 1250
Friday Closing ( 15/04/22) : 1250
Week On Week Difference : Stable

Global Trend: Assessed as soft.

Latest overseas offers of PP Raffia/ & Inj Mldg were assessed lower at US$ 1530-1540/Mt for CIF NS, India

Last Indian Rate Revision: WEF April 14' 22, RIL decreased PP price by Rs. 3/Kg.

Latest 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 :
This week saw Indian producers slashing their PP prices. The downward revisions are the consequences of the global price declines and the prevalence of weak demand in bazaars.

The  environment in the Indian bazaars during the week was quiet. And, that led to the traders devising different pricing strategies to woo buyers. Notably, most importers have stepped back on homo-PP offers.

In another development, local PP producers have announced the lifting based incentive scheme for April’22 due to the supply pressure and the dull demand. Indian buyers  have assessed the bazaar purely with a demand and supply perspective, putting aside the impact of the volatile crude oil prices.
However, the current levels of PP prices have pinched PP converters, resulting in some of them pondering whether to slow or temporarily halt production to escape the onslaughts of the high raw material prices.

A reputed PP processor told one of our editorial team members, “We cannot reflect higher raw material and production costs onto our sales. We may stop production until the commodity witnesses further decline of 8-10 % from current levels.”

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)
Raffia:  Rs.126-127
Film :Rs.134-135
Lamination : Rs.133-134
Inj.Mldg : Rs.129-130
PP Co Polymer : Rs. 132-133
Random : Rs.137-138
Thermoforming : Rs.132-133

Purchase Recommendation: Considering the major price controlling factors & taking into account the possible influence of the recent developments, we predict softer trend of PP variants. Under the influence of above possible scenarios, Indian processor has already declared off-take based incentive scheme.

As per Polymer Bazaar, if demand continue to remain sluggish - Indian Polymer producers may be forced to offer Price Protection along with price cut. Therefore, smart procurement process is suggested at the current prices.

Feedstock:
Propylene CFR China ( $/Mt)
Monday Opening ( 04/04/22): 1180
Friday Closing ( 08/04/22) : 1170
Week on Week Difference : Down by 10

China Bazaar:
PP Spot Bazaar ( RMB/MT)
Monday Opening ( 04/04/22): 8980
Friday Closing ( 08/04/22) : 8880
Week On Week Difference : Down by 100

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

Global Trend: Assessed as soft.

Latest overseas offers of PP Raffia & Inj Mldg were assessed lower at US$ 1560-1570/Mt for CIF NS, India

Last Indian Rate Revision: WEF April 7, 22, HPL left PP Prices unchanged.

Latest 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 : Eventually, a ray of hope has emerged for possible price moderation for PP buyers. The subdued demand in the China bazaar due to the imposition of lockdowns, halting industrial activity, has forced the PP sellers to look for overseas bazaars for re-export opportunities.

As a result, the South Asian bazaars witnessed heavy influx of Chinese cargoes with lucrative offers, increasing pressure on local polymer producers.Overseas suppliers have started to loosen the stance, signalling further price corrections in the near future.
Meanwhile, PP processors have adopted a cautious stand, waiting for further price slides,  avoiding any extra purchases.
With the increased supply pressure from international producers along with ongoing dull outlook have together invited local producer to announce lifting based incentive scheme for April '22.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)
Raffia:  Rs.128-129
Film :Rs.136-137
Lamination : Rs.137-138
Inj.Mldg : Rs.132-133
PP Co Polymer : Rs. 135-136
Random : Rs.140-141
Thermoforming : Rs.135-136

Purchase Recommendation: Considering the major price controlling factors & taking into account the possible influence of the recent developments, we predict softer trend of PP variants. Under the influence of above possible scenarios, Indian processor has already declared off-take based incentive scheme. If demand dynamics continue to remain sluggish- local producers may require to offer Price Protection in days ahead. Polymer procurement is suggested for routine requirements.

Click to Download PDF with historical Data : 

Feedstock:
Propylene CFR China ( $/Mt)
Monday Opening ( 14/03/22): 1270
Friday Closing ( 18/03/22) : 1185
Week on Week Difference : Down by 85

China Bazaar:
PP Spot Bazaar ( RMB/MT)
Monday Opening ( 14/03/22): 9320
Friday Closing ( 18/03/22) : 8940
Week On Week Difference : Down by 380

Latest Overseas offers of Raffia/IM for CFR China Main Port ( $/Mt)
Monday Opening ( 14/03/22): 1280
Friday Closing ( 18/03/22) : 1260
Week On Week Difference : Down by 20

Global Trend : Assessed as stable.

Latest overseas offers of PP Raffia & Inj Mldg were assessed stable at US$ 1580/Mt-$ 1590/Mt for CIF NS, India

Last Indian Rate Revision: WEF 17 March '22, RIL kept PP price unchanged.

Latest 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 started on a stable note, buying sentiment has been depressed amid lingering holiday lull & ended on a softer note as it became depressed. However, the buying momentum is likely to strengthen in the coming days due the possibility of any supply-chain interruption from the Muslim countries during the upcoming Ramadan holidays.There were significant resistance to buy even at the current price levels.

Moreover, Indian processors are yet to gather the confidence to return to the routine buying approach after the crude oil bazaars fell more than 20 % just in a week time. Also, the approach of "Profit Booking" was witnessed by processors with sharp reversal in premium to prompt buying appetite amid ample availability in the region.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)
Raffia:  Rs.130-131
Film :Rs.140-141
Lamination : Rs.137-138
Inj.Mldg : Rs.134-135
PP Co Polymer : Rs. 136-137
Random : Rs.137-138
Thermoforming : Rs.134-135

Purchase Opinion : Considering recent outlook and assessing the possible influence of other price controlling factors, need based Polymer Procurement is advised for routine requirements.

Click to Download PDF with historical Data :

Feedstock:
Propylene CFR China ( $/Mt)
Monday Opening ( 21/02/22): 1145
Friday Closing ( 25/02/22) : 1175
Week on Week Difference : Up by 30

China Bazaar:
PP Spot Bazaar ( RMB/MT)
Monday Opening ( 21/02/22): 8490
Friday Closing ( 25/02/22) : 8510
Week On Week Difference : Up by 20

Latest Overseas offers of Raffia/IM for CFR China Main Port ( $/Mt)
Monday Opening ( 222): 1160
Friday Closing ( 25/02/22) : 1190
Week On Week Difference : Up by 30

Global Trend : Assessed as firm.

Latest overseas offers of  PP Raffia & Inj.Mldg. assessed higher at US$ 1470/Mt-$ 1480/Mt for CIF NS, India.

Last Indian Rate Revision: WEF 24th Feb.'22 RIL kept PP price unchanged.

Latest Custom Exchange rate:  Custom Exchange rate ($-INR) for imports was revised to Rs.76.05 (+0.30 ) wef February 18th, 2022, from the previous 75.75 on Feb.4th, 2022..

Buying Pulse : The ongoing tussle between Ukraine & Russia may cast its shadow on Indian polymer prices. Polymer processors have expressed concerns over likely upward pressure on input costs owing to rising crude, geopolitical escalations between Russia and Ukraine.

Local PP bazaar transactions at India gains as supply scenario tightens. However buying interest remains average, Industry participants are hopeful that demand for PP variants would pick up in the coming weeks as manufacturers prepare for next seasonal demand.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)
Raffia:  Rs.124-125
Film :Rs.127-128
Lamination : Rs.128-129
Inj.Mldg : Rs.124-125
PP Co Polymer : Rs. 127-128
Random : Rs.127-128
Thermoforming : Rs.122-123

Purchase Opinion :In a view of current situation & expected effect of recent Russia-Ukraine development, commodity is heading towards uptrend. Indian Polymer producers will increase price for 1st Match'22. Polymer procurement is suggested at current levels.

Feedstock:
Propylene CFR China ( $/Mt)
Monday Opening ( 14/02/22): 1120
Friday Closing ( 18/02/22) : 1140
Week on Week Difference : Up by 20

China Bazaar:
PP Spot Bazaar ( RMB/MT)
Monday Opening ( 14/02/22): 8530
Friday Closing ( 18/02/22) : 8500
Week On Week Difference : Down by 30

Latest Overseas offers of Raffia/IM for CFR China Main Port ( $/Mt)
Monday Opening ( 14/02/22): 1160
Friday Closing ( 18/02/22) : 1160
Week On Week Difference : Stable

Global Trend : Assessed as firm.

Latest overseas offers of  PP Raffia & Inj.Mldg. assessed higher at US$ 1470/Mt-$ 1480/Mt for CIF NS, India.

Last Indian Rate Revision: WEF 17th Feb.'22 RIL increased PP price by Rs.1.5/Kg.

Latest Custom Exchange rate:  Custom Exchange rate ($-INR) for imports was revised to Rs.76.05 (+0.30 ) wef February 18th, 2022, from the previous 75.75 on Feb.4th, 2022..

Buying Pulse -Profit booking phase:
Bazaar sources are witnessing sluggish demand at domestic front,which has pulled down high end premium.On account of dull buying off take in finished products ,the processing Industry has initiated resistance towards acceptance of open bazaar premium.
Traders & stockiest have opted to liquidate PP grades at current levels before premium squeezed down to null.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)
Raffia:  Rs.123-124
Film :Rs.126-127
Lamination : Rs.124-125
Inj.Mldg : Rs.123-124
PP Co Polymer : Rs. 126-127
Random : Rs.127-128
Thermoforming : Rs.121-122

Purchase Opinion : In a view of current situation & status of other price governing factors, Polymer procurement is advisable at company price.

Click to Download PDF with historical Data :

Feedstock:
Propylene CFR China ( $/Mt)
Monday Opening ( 07/02/22): 1075
Friday Closing ( 11/02/22) : 1120
Week on Week Difference : Up by 45

China Bazaar:
PP Spot Bazaar ( RMB/MT)
Monday Opening ( 07/02/22): 8420
Friday Closing ( 11/02/22) : 8550
Week On Week Difference : Up by 130

Latest Overseas offers of Raffia/IM for CFR China Main Port ( $/Mt)
Monday Opening ( 07/02/22): 1130
Friday Closing ( 11/02/22) : 1160
Week On Week Difference : Up by 30

Global Trend : Assessed as firm.

Latest overseas offers of  PP Raffia & Inj.Mldg. assessed higher at US$ 1450/Mt-$ 1460/Mt for CIF NS, India.
On a/c of price supporting factors,commodity is expected to cross US$ 1500/Mt in near future.
Last Indian Rate Revision: WEF 10th Feb.'22 RIL increased PP price by Rs.5/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.21st, 2022..

Buying Pulse :Processors are more willing to accept the increases, which bazaar players attributed to the constantly rising global price reference.The buying pulse remained encouraging on the back of an approach of covering stock as current levels.Open bazaar premium escalated from the beginning of this month which has allowed stockists to dictate their terms. In order to address product availability for next months due to upcoming scheduled shutdowns, industry participants have already stepped in to inventory building exercise.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)

Feedstock:
Propylene CFR China ( $/Mt)
Monday Opening ( 31/01/22): 1070
Friday Closing ( 04/02/22) : 1080
Week on Week Difference : Up by 10

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.

Global Trend : Assessed as firm.

Latest overseas offers of  PP Raffia & Inj.Mldg. assessed higher at US$ 1380/Mt-$ 1390/Mt for CIF NS, India.

Last Indian Rate Revision: WEF 1st Feb.'22 RIL increased PP price by Re.3/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.21st, 2022..

Buying Pulse : Overseas bazaars continue to move higher this week on the back of improved regional demand. Fresh import offers of PP variants revealed on the track of firming trend, supported by the surging energy values & supply disruption.In anticipation of further price hike, an approach of inventory building observed at current level. On a/c of healthy demand, Open bazaar prices tighten by Rs.2-3/Kg across country.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)

Raffia:  Rs.118-119
Film :Rs.119-120
Lamination : Rs.120-121
Inj.Mldg : Rs.119-120
PP Co Polymer : Rs. 122-123
Random : Rs.125-126
Thermoforming : Rs.119-120

Purchase Opinion :In a view of current outlook  with an expected influence of other price governing factors , Polymer procurement is suggested at company price.

Click to Download PDF with historical Data

Feedstock:
Propylene CFR China ( $/Mt)
Monday Opening ( 24/01/22): 1070
Friday Closing ( 28/01/22) : 1065
Week on Week Difference : Down by 5

China Bazaar:
Overseas Offers for CFR China Main Port ($/Mt)
Monday Opening ( 24/01/22): 1120
Friday Closing ( 28/01/22) : 1120
Week On Week Difference : Stable

Global Trend : Assessed as firm.

Latest overseas offers of  PP Raffia & Inj.Mldg. assessed higher at US$ 1350-$ 1360/Mt for CIF NS, India. This week, overseas offers remain on the firmer track with incline in energy & feed stock values.

Last Indian Rate Revision: WEF 20th Jan.'22 RIL increased PP price by Re.1/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..

Buying Pulse :
The buying pulse observed encouraging as processing industry has aggressively participated in procurement process.Open bazaar price escalated by Re.1-2/Kg when compared with previous week.Healthy buying momentum & higher global price reference will surely result in price increment on 1st Feb.'22.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)

Raffia:  Rs.113-114
Film :Rs.115-116
Lamination : Rs.116-117
Inj.Mldg : Rs.114-115
PP Co Polymer : Rs. 117-118
Random : Rs.124-125
Thermoforming : Rs.117-118

Purchase Opinion :Considering current scenario & status of other price governing factors, Polymer Procurement is suggested at current levels. Indian Polymer Producers will offer price rise for 1st February'22.We will share Prediction in a due course of time.

Feedstock:
Propylene CFR China ( $/Mt)
Monday Opening ( 17/01/22): 1045
Friday Closing ( 21/01/22) : 1070
Week on Week Difference : Up by 25

China Bazaar:
Overseas Offers for CFR China Main Port ($/Mt)
Monday Opening ( 17/01/22): 1120
Friday Closing ( 21/01/22) : 1130
Week On Week Difference : Down by $ 10

Global Trend : Assessed as firm.

Latest overseas offers of  PP Raffia & Inj.Mldg. assessed higher at US$ 1350-$ 1360/Mt for CIF NS, India.

Last Indian Rate Revision: WEF 20th Jan.'22 RIL increased PP price by Re.1/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..

Buying Pulse : This week, buying pulse remained encouraging as global price reference has shown consistent uptrend. Industry has responded positively towards recent increment offered by local producers by stepping in to active off take. However, regional demand of PP CP, RCP & few other grades is still lagged behind mark.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)

Raffia:  Rs.111-112
Film :Rs.114-115
Lamination : Rs.115-116
Inj.Mldg : Rs.113-114
PP Co Polymer : Rs. 116-117
Random : Rs.123-124
Thermoforming : Rs.116-117

Purchase Opinion : In a View of above outlook along with expected influence of other price deciding factors, Polymer procurement is suggested at current levels.

Feedstock:
Propylene CFR China ( $/Mt)
Monday Opening ( 10/01/22): 1025
Friday Closing ( 14/01/22) : 1035
Week on Week Difference : Up by 10

China Bazaar:
Overseas Offers for CFR China Main Port ($/Mt)
Monday Opening ( 10/01/22): 1160
Friday Closing ( 14/01/22) : 1160
Week On Week Difference : Stable

Global Trend : Assessed as stable.

Latest overseas offers of  PP Raffia & Inj.Mldg. assessed lower at US$ 1320-$ 1330/Mt for CIF NS, India.

Last Indian Rate Revision: WEF 13th Jan.'22 RIL kept 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.

Buying Pulse :At domestic front, demand continue to remain dull regardless of stabilizing overseas offers. Industry participants have adopted a more cautious stance to read an impact of pandemic over future business & trade activities. In order to invite buying interest local producers may offer performance based discount schemes in near future. In addition to persistently falling demand, appreciation of INR against USD will also be another factor to control commodity price at current levels.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)

Raffia:  Rs.109-110
Film :Rs.110-111
Lamination : Rs.114-115
Inj.Mldg : Rs.109-110
PP Co Polymer : Rs. 114-115
Random : Rs.120-121
Thermoforming : Rs.114-115

Purchase Opinion : Considering above scenario & recent developments , Polymer buying is advised for routine requirement.

Feedstock:
Propylene CFR China ( $/Mt)
Monday Opening ( 03/01/22): 995
Friday Closing ( 07/01/22) : 1015
Week on Week Difference : Up by 20

China Bazaar:
Overseas Offers for CFR China Main Port ($/Mt)
Monday Opening ( 03/01/22): 1160
Friday Closing ( 07/01/22) : 1150
Week On Week Difference : Down by $ 10

Global Trend : Assessed as stable to firm.

Latest overseas offers of  PP Raffia & Inj.Mldg. assessed lower at US$ 1320-$ 1330/Mt for CIF NS, India.

Last Indian Rate Revision: WEF 1st Jan.'22 RIL kept price unchanged.Company also withdrawn Price Protection.

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 :Buying sentiments suddenly turned dull following rising cases of covid & prevailing uncertainties. Many cities have been ordered to undergo weekend lock down in order to  follow preventive measures.This has turned the mindset of processors,traders as they have opted to slow down buying pattern. Industry participants preferred to remain hand to mouth amid the sluggish demand in finished products. Though global price reference signals stable to firm trend, buying pulse is still below average mark.Regional demand is likely to book in improvement in days to come.

Deals concluded in the recent past (Rs/kg, Ex Bhiwandi , Excl. GST)

Raffia:  Rs.110-111
Film :Rs.111-112
Lamination : Rs.115-116
Inj.Mldg : Rs.110-111
PP Co Polymer : Rs. 115-116
Random : Rs.121-122
Thermoforming : Rs.115-116

Purchase Opinion: Looking to current scenario & other developments took place in industry, Polymer Procurement is suggested at current levels.