SupplyFriday, 3 July 2026·India
India's domestic PP and PE prices slashed in unprecedented single-day swoop as PVC slide continues
India’s polymer market witnessed a major correction on July 2 as leading domestic producers announced sharp price reductions across PP, PE, and PVC grades. The unexpected move marks one of the largest single-day adjustments seen in recent years and reflects growing pressure from cheaper imports, weak seasonal demand, and softer global feedstock markets.
PP prices recorded the steepest decline, with domestic and deemed export levels reduced by INR 12,500/ton. HDPE and LLDPE prices were also cut by INR 10,000/ton, while LDPE grades saw reductions ranging from INR 3,000-6,000/ton. Producers also withdrew price protection mechanisms for HDPE and LLDPE, indicating a more market-driven pricing environment going forward.
The aggressive correction comes amid increasing competition from imported material, particularly from China. Global oversupply and sluggish demand in several regions have encouraged exporters to offer cargoes at highly competitive levels, forcing domestic suppliers to lower prices to protect market share and maintain sales volumes.
Demand conditions have also weakened due to the monsoon season. Heavy rainfall across India has slowed activity in key sectors such as agriculture, infrastructure, and construction, reducing immediate polymer consumption. Applications linked to pipes, irrigation systems, and construction materials have been particularly affected.
PVC prices continued their downward trend as well, with producers implementing an additional INR 3,000/ton reduction after a previous cut of INR 4,000/ton late last month. The market remains under pressure from competitively priced imports and seasonally weak demand from the agricultural sector. Domestic producers have also removed PVC price protection, increasing exposure to spot market fluctuations.
Lower crude oil and feedstock prices have given producers greater flexibility to pass on cost benefits to buyers. With Brent crude remaining below recent highs and olefin feedstock values softening, manufacturers have used the opportunity to realign domestic prices closer to import parity.
Despite the sizeable reductions, market response has remained cautious. Many traders and converters are delaying purchases in anticipation of further adjustments from other suppliers. Market participants believe the latest cuts have improved the competitiveness of domestic material, although a meaningful recovery in buying activity may take some time.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211
PP prices recorded the steepest decline, with domestic and deemed export levels reduced by INR 12,500/ton. HDPE and LLDPE prices were also cut by INR 10,000/ton, while LDPE grades saw reductions ranging from INR 3,000-6,000/ton. Producers also withdrew price protection mechanisms for HDPE and LLDPE, indicating a more market-driven pricing environment going forward.
The aggressive correction comes amid increasing competition from imported material, particularly from China. Global oversupply and sluggish demand in several regions have encouraged exporters to offer cargoes at highly competitive levels, forcing domestic suppliers to lower prices to protect market share and maintain sales volumes.
Demand conditions have also weakened due to the monsoon season. Heavy rainfall across India has slowed activity in key sectors such as agriculture, infrastructure, and construction, reducing immediate polymer consumption. Applications linked to pipes, irrigation systems, and construction materials have been particularly affected.
PVC prices continued their downward trend as well, with producers implementing an additional INR 3,000/ton reduction after a previous cut of INR 4,000/ton late last month. The market remains under pressure from competitively priced imports and seasonally weak demand from the agricultural sector. Domestic producers have also removed PVC price protection, increasing exposure to spot market fluctuations.
Lower crude oil and feedstock prices have given producers greater flexibility to pass on cost benefits to buyers. With Brent crude remaining below recent highs and olefin feedstock values softening, manufacturers have used the opportunity to realign domestic prices closer to import parity.
Despite the sizeable reductions, market response has remained cautious. Many traders and converters are delaying purchases in anticipation of further adjustments from other suppliers. Market participants believe the latest cuts have improved the competitiveness of domestic material, although a meaningful recovery in buying activity may take some time.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211
