Major polypropylene producers in India have reduced their offer prices in the domestic market as of August 1, due to a poor demand outlook, as per industry sources in Platts.
Reliance Industries has cut its domestic PP offer level by Rs 4000/MT (US$58/mt) as of August 1. Indian Oil Corporation, Haldia Petrochemicals and other major Indian PP producers have followed suit. MRPL has reduced prime PP grades by Rs 3000/MT with effect from August 6.
Ahead of the drop in PP prices, Indian producers had announced a price protection scheme for domestic clients over July 21-31, whereby producers agreed to refund the difference in purchase price if offers were lowered on August 1, according to industry sources. This strategy was meant to attract buyers who would otherwise have held back, waiting for offers to fall. The India PP demand outlook for the rest of the third quarter continues to be bearish due to the seasonal monsoon in India, declining Chinese demand and plentiful supplies from the Middle East
Indian polypropylene producers reduce domestic prices for August on weak demand outlook
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