Market and product

Spot polyethylene (PE) prices in India remained stable this week, backed by limited supply amid a pessimistic outlook for the near term, market sources said on Friday.

Indian PE producers opted to maintain the posted prices during the week even as buyers held firm expectations of a price reduction to follow the recent weakness in crude oil values, market sources said.

Limited stocks were cited by suppliers as the reason for a lack of change in posted prices, market sources said.

However, demand for all PE grades remained weak, capped by firm expectations of lower prices to follow in the weeks ahead, sources said.

Importers also assumed a cautious stance and refrained from discussing imports on the back of an uncertainty in crude and PE prices in the weeks ahead.

Steep falls netted on PE in the previous years also led importers to refrain from discussions.

“In the last 2-3 years, the period between July to December has seen a fall in PE prices as much as $300/tonne, so we want to be very cautious in buying," an importer said.

Looking ahead, market players expect lower offers for GCC-origin lots to emerge in the near-term, following weak buying sentiments.

Some buyers however said that they would stay away from imports even if prices were to decline significantly.

“I am not a buyer even if suppliers drop prices by $50/tonne, since I am not confident of the price outlook till the end of this year," an importer added.