PE prices to move linearly in Indian markets in the near term – 22 Sep 2014

Active off-takes from the packaging industry have resulted in a uniform demand pattern for PE materials in Indian polymer markets. Absence of influence of international markets, availability of stocks with traders and improbably of any spurt in demand conditions indicate that there is no likelihood of PE prices going up in the near future. Moreover, the prospect of any decline in PE stocks due to the planned shut-down of HDPE unit of Indian Oil Corporation Limited in the first half of the next month is also not going to take effect as the suspension of operation of the unit will be of a short duration ( approximately 2-3 days) to impact supply schedule.

In the meantime, LyondellBasell has offered its HDPE(Blow Moulding) and LDPE (Film) to India from its plant in Saudi Arabia at $1,650 per metric tonne CIF and $1,630 per metric tonne CIFrespectively, for shipment in October 2014.