Need-based purchases keeps GPPS demand moderate in Indian markets – 2 May 2014

GPPS off-takes have been moderately active in the Mumbai market on end-users purchasing the raw material on need-basis, and abstaining from procuring in excess of their immediate requirements. Some buyers also said that they were adopting a wait-and-watch stance in the prospect of seeing some moderation in the price in the near future.  On the prevailing market trend in respect to the polymer, a Mumbai-based trader told Indianpetrochem, " Buyers are purchasing the GPPS material on need-basis, as they expect the price to go down in the coming days. Demand conditions, thus, are moderate. But, if the price goes down, demand will strengthen." 
 

An end-user, based in Mumbai, said," We are currently implementing the buy as per need basis, and if the price goes down, we will build up a raw material inventory."
 

In the Mumbai market today, GPPS was sold at around Rs 141-142 a kg, and the price is expected to remain stable in the near term.