Producer price decrement invigorates PET purchases in Indian markets – 6 Feb 2014

Demand for the PET material has strengthened in the major markets in India this week, and traders attribute the shift in the demand pattern to Reliance Industries Limited lowering its ex-work price for the material in its recent price revision. The company had recently reduced its PET price by Re 1 a kg. A Mumbai-based trader, with whom Indianpetrochem today discussed about the on-going PET market trends, said," Off-takes of PET have increased than that during the last few days. Buyers are now purchasing the material as the price has slightly moderated after Reliance Industries Limited lowered its price for the material with the start of this month." He further said," The company's price decrement has turned buyers' sentiments bullish." 
 

The trader also quoted the price for the PET (Bottle Grade) material at Rs 123-126 per kg.
 

Most PET buyers are also adopting the need-based raw material procurement strategy, in the prospect of the price going down further in the coming days. In the context of raw material procurement strategy, a PET bottle manufacturer, based in Mumbai, told the website," We are, in fact, constrained to procure PET, our prime raw material, regardless of price fluctuations as demand for beverage bottles is gradually increasing. Price of the PET resin is also expected to go down in the near future, and in that case, its demand will strengthen more."
 

Besides, interactions with several PET item manufacturers, especially in the Mumbai region, revealed that affinity for importing the raw material among them was almost nil