Indian producer slashes PP, PE, and PVC prices amid tepid market sentiment

The Indian market entered August on a subdued note as a leading domestic producer implemented further cuts in PP, PE, and PVC prices, coupled with additional discount schemes. Despite a series of price reductions introduced in July, these measures have failed to significantly boost trading sentiment.

Faced with sluggish demand, the producer opted for deeper price cuts at the start of August, hoping to invigorate buying activities ahead of the festive season. However, the outlook remains grim as the monsoon season and ample supply continue to weigh heavily on market dynamics, notwithstanding minor delays in import arrivals.

The following reductions on PP, PE, and PVC were effected on 1 August 2024. 

“Buying activities are undeniably weaker, but this was anticipated. Last month, we managed to move a good number of PP cargoes after applying discounts,” commented a representative from the producer.

In a bid to stimulate interest, the producer announced a new incentive scheme for PP as of 05 August. The scheme offers tiered discounts based on the buyer’s annual purchase commitment.

• Over 7%: Discount A
• Over 9%: Discount B
• Over 11%: Discount C
• Over 13%: Discount D

The specific discount amounts (A, B, C, D) will be disclosed by the end of the month.

Despite current challenges, market participants remain cautiously optimistic about demand picking up in the latter half of August. They expect converters to accelerate replenishment activities in preparation for the festive season, potentially shifting the market dynamic.

Written by: Rochelle Nguyen