Depreciating Re impacting petrochemicals demand in India: Platts

The falling rupee is reported having an adverse effect on the petrochemical market in India, with buyers in the country shying away and sellers struggling to pass on the increased import cost to domestic customers, according a latest report of Platts - a leading global provider of energy, petrochemicals, metals and agriculture information.
 
In last few years, the demand for petrochemicals has been growing at robust pace in India. Traditionally, India has been a major market for the petrochemical manufacturers, especially polymers, from Middle East. With rupee depreciating nearly 20% against the US dollar from its peak this year, polymer converters from India are feeling the pinch and increasingly looking to source from domestic producers.
 
Platts report added, “Of the various petrochemical products, demand for polymers was hit hardest as India's polymer converters were struggling with the high import costs. This in turn hit Middle East polymer producers as they typically export their surplus to India - one of their main markets - where buyers were now backing off on the weaker rupee. These Middle East producers were forced to source for outlets elsewhere. For instance, some polymer trading houses in Dubai have been directing their cargoes to buyers in Africa instead of India.”