HDPE purchases weaken in India after producer price hikes – 23 Jan 2014

Most HDPE buyers in India have lessened their purchase volumes after the producer price hikes, resulting in traders in the major polymer markets in the country experiencing dull trading conditions in respect to the polymer. In the context, a Mumbai-based trader told Indianpetrochem, "HDPE off-takes are less, and supply is also short. Producers in the country have not released fresh supplies." Quoting the prevailing prices, the trader said," The Blow Moulding, Injection Moulding and Film grades of the HDPE material are sold today at around Rs 120.50 a kg, Rs 120 a kg and Rs 125 a kg respectively." 
 

In the Delhi market also, off-takes of HDPE were inactive. A trader attributed the inactive HDPE sales to the recent producer price hikes. But, another trader revealed of an interesting phenomenon, which is likely to impact demand for polymers in the market in the days to come.
 

According to him, most manufacturing units have been gradually moving from the Delhi/NCR region to the Uttarakhand state, due to which demand for plastic raw materials in the National Capital region will weaken in the future.
 

Another trader in the Delhi market attributed the inactive demand for HDPE(among other polymers) to inadequacy of liquidtity among buyers. 
 

In the Delhi market today, the Blow Moulding, Injection Moulding and Film grades of the HDPE material was sold at around Rs 120 a kg, Rs 117 a kg and Rs 121.50 a kg respectively.