Shortages of PE stocks in Indian markets points toward producer price hikes – 23 Apr 2014

Shortages of HDPE and LLDPE in Indian polymer markets due to non-receipt of fresh consignments from Indian producers have created the apprehension of ex-work price hikes in the next producer price revisions among market participants. Compounding to the situation, there has been almost no arrival of import cargoes, causing shortages of the imported variants of the materials. 
 

In the context of the tight market situation in respect to the polymers, a Delhi-based trader said," Stocks of HDPE and LLDPE have hit the bottom in the market. Suppliers are not supplying." He further said," Producers are most likely to raise their ex-work prices for the polymers."
 

Meanwhile, manufacturers of items of the raw materials were learnt to operate their factories at high rates in view of active demand for their end-products. Traders, thus, experienced active demand for the raw materials.
 

Analyzing the tight market situation, it could be inferred that producers are most likely to raise their ex-work prices in the upcoming price revisions.