India: Domestic GP Prices Lose Momentum over Dull Trades

India's domestic GP prices have shown the decline this week by USD 500-1,000/MT W-o-W owing to dwindling demand prevailing in the domestic demand. Gloomy demand and lower sales volumes has resultant to falling GP prices in domestic market.

Currently,prices of 0.80 mm GP across other major markets are hovering in the range as follows: Mumbai - INR 54,000/MT; Delhi - INR 52,500-53,000/MT and INR 52,000-52,500/MT in Chennai. Prices are inclusive of Excise Duty of 12.5%; VAT/CST extra.

However,Market participants also mention that weak buying activities is indicating further decline in domestic GP prices in near term.

India GP Exports Dropped 39% M-o-M in Apr'17-Indian GP exports reported a significant downfall of 39%,M-o-M basis to 0.11 MnT in Apr'17 against previous month.In Mar'17 the same stood at 0.18 MnT. However on yearly basis nation's GP exports fallen by 8% in Apr'17 against 0.12 MnT in Apr'16.

Major markets for Indian GP exports were Belguim and Italy followed Spain,South Africa and USA.

Chinese HDG Export Offers Rises Despite Dull Domestic Demand
Chinese HDG export offers witnessed the rise in prices this week by USD 15/MT on account of strengthening domestic market. However dull and sluggish demand in China's domestic market may lead to Chinese HDG prices under pressure.

China's 1mm HDG export offers are hovering in the range of USD 545-550/MT, FoB China. Last week the same was heard in the range of USD 530-535/MT on FoB basis.

Moreover,Chinese export offers seen rising owing to bullish sentiments in paper market.But lackluster demand in domestic market maykeep HDG prices under pressure in near term.