Indian Producers Raise PP Prices for Fourth Time Since May; PE Prices Stable

Indian producers have raised polypropylene (PP) prices for the fourth consecutive time since May, driven by tight domestic supply management. Despite softer regional markets, local producers have maintained strong pricing power. In contrast, polyethylene (PE) prices have been rolled over, reflecting stable supply conditions.

The increase in PP prices comes amid geopolitical tensions and disruptions in global logistics, which have led to a sharp rise in crude oil and polymer feedstock costs. These factors have significantly impacted the Indian plastic manufacturing sector, with input costs rising by 50 to 60 percent in March 2026. This has put pressure on manufacturers' margins and prompted price hikes across various plastic products.

While PP prices have surged, PE prices have remained stable, indicating a divergence in market dynamics for these key polymers. The stability in PE pricing suggests that supply conditions are more balanced compared to the tight PP market.

The ongoing price increases are affecting a wide range of industries reliant on plastic inputs, including fast-moving consumer goods, automotive, construction, and agriculture. As these sectors grapple with higher costs, the pressure on margins is likely to continue, potentially leading to further price adjustments in finished goods.