Active demand pushes PP price upward in India – 16 Feb 2015

Domestic market is sustaining strong shortage of Polypropylene material. The shortage of material is due to lack of import cargo and very less supply from Domestic producers as compare to demand. PP prices have started to rebound in the international  as well as domestic market. Offer prices was also reported at higher by $50-$80 per metric tonne. Domestic producers have also increased its PP prices by 4 Rs/Kg in last two consecutive revision.

Polypropylene prices was reported to upward in South East Asian market. International market is also come back at stable situation. Crude oil prices are also strengthening day by day. This is because US oil rigs have shut down. However, only the most unproductive ones have shut down. Data is still pointing that oil supply in the US has not gone down drastically, meaning that the recent oil price hike could be temporary. A nationwide US strike at oil refineries has caused 13% of refineries to shut down - this could have an effect on oil prices if it continues, according to input received.

According to reliable sources, End users are now active in purchasing as well as build their stocks and they are thinking that market has stable and reverse back. Strong premium seen in domestic market in Polypropylene. Stocks of PP are very less in the market and material are selling at 5-8 Rs/kg higher than its Producers prices while PP TQ Film (Imported) was quoted at around Rs. 115 a kg respectively.