Crude Oil Surge and Its Impact on the Polymer Market

The recent surge in crude oil prices, driven by renewed geopolitical tensions, has raised questions about its potential impact on the struggling polymer market. Brent crude has seen a significant increase, climbing 17% to reach the mid-$80s per barrel. This rise in crude oil prices has prompted polymer sellers to test price increases, citing higher feedstock costs.

Despite these efforts, the polymer market remains sluggish. Key polymer products such as HDPE Film, PP, and PVC have experienced substantial price declines over the past few months. Specifically, HDPE Film CFR India prices have dropped by 30%, PP CFR India by 28%, and PVC CFR India by 4% from week 9 to week 28.

The global polymer supply remains ample, with regional petrochemical production largely unaffected by the crude oil rally. This persistent oversupply continues to exert downward pressure on polymer prices, despite the recent uptick in crude oil costs. As a result, the polymer market has not yet seen a reversal of its downward trend.