Poor demand pushes polypropylene prices further down – 19 Dec 2014

Roiling down polymer prices in the domestic as well as international market has suppressed the buying sentiments in the market. Polymer demand is also going downward day by day due to Instability in the market. End users are not active in purchasing. Buyers have been purchasing less or only on the need basis to run their manufacturing units. Crude Oil prices have declined persistently over the past few months and are expected to reach $40 a bbl according to our sources.

Feed stock prices have moved down significantly in South-East Asia, propylene prices were quoted at $744 per tonne CFR, which was down by $160 per metric tonne against last week. This is because of regular fall in crude oil prices. In South-East Asia, polypropylene prices were settled at $1144-$1160 per metric tonne CFR at present, which was down by $90 per metric tonne against last week.

On communication with different traders and end users Indianpetrochem has gathered information that polymer prices may further decline by significantly because of constantly downward demand sentiment and feedstock's prices.

Though film industries are little bit active in purchasing but the rest of the industry are waiting market settlement. Traders are avoiding any purchase of fresh material, and are trying to off load their stocks. Prices were reported at negotiable rate because of further downward trend and less demand.