Domestic price of PP expected to decline – 13 Aug 2014

This month most domestics manufactures of Polypropylene increased their ex- works price by Rs. 1-2 per kg, on account of demand -supply imbalance in the market. Howevere, going forward, there is a market expectation that polypropylene (PP)prices will move down in the near future as cheaper imports will flood the market. 
 

Indianpetrochem gathers from various market sources that the demand for PP is strong from most end users. On this account a trader told Indianpetrochem, "The supply of PP is moderate across major markets, however, the demand for the commodity polymer is strong, especially for random copolymer grade and film grade."
 

Currently the spot landing price for various grades of PP is within the range of $ 1,585-1,687 per metric tonne CRF India; this compared against domestic product price of $1,625-1,725 per metric tonne  (after adjusting for port handling charge and basic custom duty), is much higher. These trend stems the perception that the domestic price of PP by local manufactures is expected to decline in the near future.
 

Currently, the price of the film grade and random copolymer is at 121.5 Rs/kg and 130 Rs/kg  in Ahmedabad market, respecitvely.