Indian PP shows up in export outlets despite Reliance’s shutdown

Players in global PP markets reported that Indian homo-PP offers showed up at competitive levels over the past week despite the Indian producer Reliance’s ongoing maintenance shutdown at their 2.03 million tons/year plant.

The appearance of Indian materials was attributed to the Indian governments’ decision to withdraw the high-value banknotes from circulation which has caused market activity to stall.

A trader commented, “The government’s demonetization decision brought trading activities almost to a halt in India. Suppliers are looking for ways to divert their cargoes to other export outlets, especially to China, since they are struggling to conclude deals in India.”

In China, import homo-PP raffia prices for Indian origins were reported at $1000-1060/ton on a CIF, cash basis. Done deals were concluded at $1010-1020/ton with the same terms. Overall import homo-PP prices are currently quoted at a range of $980-1070/ton CIF China, cash equivalent basis.

In Vietnam, Indian homo-PP raffia offers showed up at $1030/ton CIF, cash and formed the low end of the overall range this week. A trader reported that they received a bid from a buyer at $1020/ton CIF for this Indian material, yet rejected it.

In Italy, meanwhile, an offer for Indian homo-PP also showed up at the low end of the overall import range this week. A converter reported that he received an Indian homo-PP injection offer at €930/ton CIF, cash, subject to 3% customs duty. “We are planning to replenish some stocks at this level which is quite competitive when compared to Middle Eastern offers,” the buyer stated.