Polymer price reductions in India

Indian polymer producers have announced pr ice reductions in polypropylene (PP) and polyethylene (PE), as imports grow amidst low domestic demand. Demand is low because during the festive season of Diwali, converters run plants at reduced capacity. This trend is contrary to the rising petrochemical prices globally. In the global markets, as crude oil prices rise, PP price has risen by $30 while PE prices have gone up by $50 compared to previous month's price. This is the first time since May that prices have been reduced in India by producers. PP has come down from Rs 84/kg to Rs 82.75/kg, high density polyethylene (HDPE), prices have fallen by Rs 2 to Rs 77/kg, and low density polyethylene (LDPE) prices have dropped by Rs 4 to Rs 97/kg. Up till now, Indian polymer producers kept prices high despite falling crude and global polymer price. Even with the current price reductions, polymer prices in India are still not at par with global levels. As newer capacities come on stream in India, pricing of polymers will be critical. The Indian market is slightly oversupplied due to expected added capacities and rise in imports as other regions face dwindling demand.Adidas Crazy 1 ADV