HMEL Announces Reserve Incentive (RI) Scheme for December 2024; Market Reacts with Slight Price Uptick

HMEL has rolled out its Reserve Incentive (RI) Scheme for Polypropylene (PP) products for December 2024, detailing incentives based on purchase thresholds. The scheme structure is as follows: For PP Homo (₹/MT): ≥75%: ₹500/MT ≥100%: ₹1,000/MT ≥125%: ₹1,500/MT For PP ICP (₹/MT): ≥75%: ₹1,500/MT ≥100%: ₹2,000/MT ≥125%: ₹2,500/MT For PP RCP (₹/MT): ≥75%: ₹2,000/MT ≥100%: ₹2,500/MT ≥125%: ₹3,000/MT This month’s scheme aligns closely with the previous month's structure, although the comparatively lower incentives have increased the landed cost for processors. Consequently, the buying momentum in the market has seen a slight improvement, driven by expectations of better pricing conditions. Market dynamics have also shifted with open market PP prices showing a marginal uptick, reflecting the interplay of incentive schemes and demand resurgence.