Iranian polyethylene (PE) producers are moving their India-bound material elsewhere because of weakening demand and declining prices in the south Asian country.
Demand for imports is falling in India as cheaper resins are available in the domestic market, where state-owned Reliance Industries is a key producer.
Uncertainty over the US-China trade war continues to weigh on Indian buyers' sentiment.
Sales of linear low-density PE (LLDPE) and high-density PE (HDPE) film remain weak.
LLDPE film prices were at $1,000-1,020/t cfr India, while HDPE film prices were at $1,050-1,070/t India, according to Argus data. Both grades were at least $20/t higher than the previous week.
Domestic producers in India had earlier announced price protection measures and reduced domestic polymer prices in an attempt to boost demand.
Banks in India are tightening regulations on Iran-origin material amid the continuing US sanctions on Tehran, limiting appetite for resins from the Persian Gulf.
China, a key consumer of Asian PE, is a preferred market for Iranian producers, who sell most of their volumes to the northeast Asian country. PE producers in Iran are now increasing their volumes into China, where spot prices are also higher.
LLDPE film prices were at $1,010-1,030/t cfr China, while HDPE film prices were at $1,090-1,130/t cfr China, Argus data showed.
The Chinese PE market this week was subdued as high stocks after the labour day holiday weighed on sentiment.
