Indian PP market grapples with oversupply, weak demand

In India, PP raffia and PP injection prices were assessed at the USD 1000-1040/mt CFR levels, both constant from the previous week. PP film and BOPP prices were assessed at the USD 1010-1060/mt CFR levels, both unchanged week by week. PP block copolymer prices were assessed flat at the USD 1020-1080/mt CFR levels.

Indian PP prices were unchanged as spot discussions were limited. Buying interest has been weak for March shipments with India’s fiscal year ending on March 31. Buyers are keen on unloading and maintaining reduced volumes to rationalize their balance sheets. This has led to a tepid buying appetite for March cargoes. Converters with reduced inventory levels are likely to be more active in import markets for March shipments.

Domestic sellers were under increased stress this week with supplies outpacing demand. While domestic producers have rolled out discount offers to attract buyers, it remains to be seen if buyers respond positively to this. Meanwhile, most of the market participants are awaiting fresh offers from overseas producers.

The Government of India has announced Bureau of Indian Standards (BIS)-mandated quality control regulations for imports of PP Materials for Moulding and Extrusion to be implemented 180 days from the date of its publication in the Official Gazette i.e. February 26, 2024.