Indian PP, PE and PVC Prices Rise Further as Buyers Resist Higher Costs

India’s polymer markets started September with another round of domestic price increases across PP, PE and PVC, as producers moved to protect margins amid sharply higher feedstock costs, rising freight rates and stronger import parity. However, converters and extruders continue to struggle to pass these increases on to end users, creating a clear pricing standoff across major industrial markets.

Domestic Producers Raise Prices Across Grades

Local producers implemented fresh hikes in early September, supported by firmer regional benchmarks. PP prices increased by INR4,000/ton ($42/ton) effective September 5, following earlier grade-specific adjustments. PVC prices rose by INR2,000/ton ($21/ton) on September 7, while effective September 7, HDPE increased by INR1,000/ton ($11/ton), LLDPE film by INR1,000-2,000/ton ($11-21/ton) and LDPE coating grades by up to INR3,000/ton ($32/ton).

The main driver has been the sharp increase in crude and feedstock costs. Weekly average Brent crude climbed from around $72/bbl in late June to $96-97/bbl during September 7-8, representing an overall increase of about 33% amid Middle East supply concerns.

Higher crude costs have also pushed Asian monomer prices higher. Weekly average ethylene prices on CFR China and Southeast Asia increased by $310/ton, while propylene prices on both bases gained $260-280/ton over the same period.

Higher Import Costs Strengthen Domestic Price Pressure

The rise in monomer costs has translated into significantly higher import offers at major Indian ports from late July through early September. SPVC K67-68 increased by $130/ton, or around 20% from its mid-July low. LDPE film and Middle Eastern PPH raffia prices rose by $110/ton and $120/ton, respectively, while Middle Eastern HDPE film gained $70/ton and LLDPE C4 film increased by $65/ton.

A modest appreciation in the rupee, from above INR95.20/USD in late July to around INR94.50/USD by early September, provided some relief. However, traders said the benefit was more than offset by higher ocean freight costs. Polymer resins are commonly shipped in 20-foot containers because of weight restrictions, making freight surcharges a significant addition to landed costs.

Currency Volatility Discourages Forward Imports

Foreign exchange uncertainty is also making traders cautious about committing to fresh imports. Market participants said recent rupee strengthening has not provided enough confidence to take longer-term positions, particularly with the possibility of a reversal before imported cargoes arrive.

Traders in inland markets are similarly avoiding inventory accumulation. Slow domestic movement and resistance to higher prices have encouraged many distributors, particularly in northern India, to operate on a back-to-back basis rather than carry expensive stocks.

Weak Agricultural Demand Limits PVC Buying

Despite the latest domestic price increases, demand from converter industries remains subdued. PVC pipe demand has yet to receive the expected boost from agricultural activity, with a 13% nationwide rainfall deficit and localized deficits exceeding 30% in some key farming regions affecting rural cash flows.

Market participants said farmers are postponing new pipe purchases and focusing instead on basic repairs. Converters are also finding it difficult to pass higher resin costs through the supply chain without risking lower sales volumes.

Until post-monsoon construction and agricultural demand strengthen enough to absorb the latest resin increases, Indian PP, PE and PVC markets are likely to remain focused on short-term, need-based purchasing.

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