PP and PE prices have been increasing steadily since the beginning of January in India. Stronger buying momentum due to continued growth in upstream markets has continued to push import PP and PE prices higher in India, while technical and maintenance issues have further supported. for the recent uptrend.

While stockpiling has been going on since the start of the year, market participants have reported increased purchasing power over the past few weeks. This is mainly due to the strength of the upstream market which has fueled bullish forecasts in the coming weeks. Technical problems reported at factories in India have also boosted the polyolefin market.

Quotations of imported PP and PE increased by 3-4% in February

Import quotes of PP homo raffia for the second half of February delivery are being reported at 1410-1450 USD/ton CIF India. This is an increase of $60/ton, about 4%, from the reported price at the end of January.

Traders also reported a 3-4% increase in import PE prices, with Middle East quotes, especially from Kuwait, reaching $1,310-1340/ton CIF India for both LLDPE and HDPE and in the low-end 1600s. USD/ton for LDPE.

Demand increases despite nearing the end of the financial year

“We see more buyers in the market, due to the steep climb in oil prices and accordingly higher raw material costs,” said a trader based in Mumbai. The trader added: “Demand for plastic products is always forecast to increase ahead of the rainy season from June to August. March usually sees inventories dwindling as market participants prepare for the upcoming rainy season. closing the fiscal year, but that's unlikely this year because current inventory levels aren't too high.”

OPaL will maintain in April; there is news of production disruptions at other manufacturers

“Everybody is buying in anticipation of rising prices in the near term and that has boosted the market,” said a source with knowledge of the matter. In addition to the strength of the energy complex, there is some discussion of technical problems at Indian polyolefin producers, namely Indian Oil and MRPL. This has driven prices higher.” This news has not yet been confirmed by the manufacturer at the time of posting.

Meanwhile, ONGC Petro additions Limited (OPaL) has announced maintenance of its production facilities in its northern India complex for one month from April 1. In addition to a dual raw material cracker plant With a production capacity of 1.1 million tons of ethylene and 400,000 tons of propylene, they have two 360,000 tons/year LLDPE/HDPE conversion plants and a dedicated 340,000 tons/year HDPE plant, in addition to a 350,000 tons/year PP plant. .

The source added: “This is sure to create a bullish impact on the market, as buyers are already ready to replenish inventories due to higher price forecasts.”

C2 price increased by 9%; C3 increased by 3% after the Lunar New Year holiday

Ethylene prices have increased by about $90/ton, or about 9%, from the previous week and reached $1,100/ton CFR China, while propylene prices have continued their upward trend since mid-December and are up $30/ton. tonnes, or about 3%, to $1095/ton CFR China. Although propylene has increased slightly, its uptrend has been in place since early 2022 with a cumulative increase of 11%.

Traders expect quotes for both the Middle East and Asia to be lifted due to higher costs. “We also see no drop in freight rates and this has continued to drive up import costs,” the trader added.