Indian polymers grind to standstill after lockdown
Polymer trade in India are slowing to a stop after the government on 24 March announced a countrywide lockdown for 21 days to stem the spread of the coronavirus.
Deliveries of polymers across the country are expected to be significantly impacted.
At least three India-based petrochemical producers either declared, or intend to declare, force majeure on supplies following the announcement of the lockdown.
Local administrations have instructed converters to stop operations, except for the production of necessities.
This will reduce resin demand for polymers from local converters.
Producers may soon face accumulating inventories as goods cannot be delivered to converters as transportation is paralysed.
Some ports and warehouses remain open today, but may face significantly reduced manpower and goods unloaded may not reach converter warehouses because of land travel restrictions.
Argus data showed that LLDPE film prices in India were at $800-840/t cfr and PP raffia prices at $890-930/t cfr on 19 March.
Indian converters have turned to locally produced polymers in recent weeks as the pandemic triggered a sharp drop in the rupee. The rupee was at 76 against the US dollar on 25 March.
Port closures could also delay shipments of Indian-origin polymers to export markets.
Deals of Indian-origin LLDPE film were heard done this week at $690-700/t cfr China for May shipment. An Indian producer active in China has not announced if April offers will be delayed as a result of the blockade.
By Muhamad Fadhil, Yee Ying Ang and China staff
source: Argus Media
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