Producer price hikes weaken demand in Indian polymer markets, traders comment – 3 Feb 2014

The producer price revisions last week, in India, have resulted in demand for polymers in the major markets in the country weakening. Interestingly, impact of the producer price increments were not felt in a few markets in the country due to availability of stocks procured before the price hikes. Here we capture a snapshot of comments of various traders in markets across the country in the context. 
 

A trader in the Ludhiana market commented, "Impact of the recent price increments by producers in India is yet to be felt. Most traders are selling their old stocks, and no buyer is buying against the new prices."
 

A Kanpur-based trader commented," Demand has weakened considerably after the producers hiked their product prices, and based on the buyers' resistance to the rising prices, I can foresee demand to weaken further." He further added," Whatever sales are going on in the market, are of the old stocks, procured before the producer price hikes."
 

In the Kolkata market, a trader commented," After the producers raising their prices, buying activities in the market have slowed down. Moreover, polymer stocks are also less available in the market."
 

A Mumbai-based trader said," There can be no question of the recent producer price hikes impacting the market, as the producers have not yet released fresh stocks. The market is having shortage of polymers."
 

A Bangalore-based trader commented," Demand in the market has weakened after the producers raising their product prices, however, I expect the demand to pick up soon."