Shortage of PP stocks in Indian markets insulates price from impact of falling international price – 24 Sep 2014

PP stocks continue to remain short in Indian markets due to non-receipt of adequate supply from domestic producers. Moderate demand is prevailing in the markets due to continuous off-takes by buyers, preferring to procure as per their immediate needs.

The recent restart of HMEL's PP plant after shut-down is expected to ease the tight supply situation to some extend after the production reaches markets by early October 2014. While, Haldia Petrochemicals Limited's PP plant continues to remain idle, and there is no certainty in restart.

PP prices in key Asian markets also have declined on account of low demand conditions to arise from festival holidays in China. However, the moderating international prices had no impact on the prices in India, apparently due to the prevailing shortage.

In the major markets in the country, the Film and Injection Moulding grades of PP is repotted to be sold at around 135 Rs/kg and 131 Rs/kg respectively.