India’s Domestic PVC, PP and PE Prices Move Higher on Fresh Producer Hikes

Indian domestic producers have announced a new round of price increases for PVC, PP and selected PE grades. The latest revisions reflect tighter domestic supply allocations, higher import replacement costs and elevated ocean freight rates across key Asian routes.

The increases come as local producers adjust domestic pricing in line with rising replacement costs for imported material. Secondary producers in Western and Southern India are also matching the revisions to maintain parity across regional spot markets. Market participants said limited spot availability from domestic suppliers has reduced buyers’ negotiating power, leaving downstream converters to absorb higher raw material costs.

PVC Leads the Latest Price Increases

Major domestic S-PVC producers increased prices by INR 2,000/ton ($24/ton) effective September 1. This follows a INR 1,500/ton increase announced in late August, taking estimated domestic FD list prices to around INR 89,000-93,000/ton.

The latest increase has been partly attributed to firmer import offers, which have moved toward $910-930/ton CFR India.

However, buyers pointed out that offers at the higher end, particularly above $920/ton CIF, are mainly for Japanese-origin cargoes that benefit from a 0% basic customs duty. Most other origins remain subject to the standard 7.5% most-favoured-nation duty.

After accounting for duties and other landing costs, replacement costs for standard Asian-origin material remain broadly supportive of current domestic FD prices, according to market participants.

PP Supported by Higher Propylene and Import Costs

Domestic PP producers also announced grade-specific increases, supported by firm import prices and higher monomer costs.

Injection moulding, fibre/filament and random copolymer grades increased by INR 3,000/ton ($36/ton), while selected specialty grades rose by as much as INR 5,000/ton ($60/ton) effective September 1.

Meanwhile, raffia, block copolymer and film grades were increased by INR 2,000/ton ($24/ton).

In the import market, Middle Eastern raffia and injection offers remained firm at around $1,270-1,320/ton CFR India. These maintained a premium of approximately $50/ton over Chinese-origin material, which continued to occupy the lower end of the market.

Firm landed costs for Middle Eastern cargoes provided additional support for the latest domestic PP increases.

LDPE Gains Outpace HDPE and LLDPE

PE price adjustments differed by grade because of variations in supply availability and import costs.

LDPE film and packaging grades increased by INR 3,000/ton ($36/ton) effective September 1, supported by tight supply and firm Middle Eastern import offers of around $1,420-1,470/ton CIF India.

LLDPE film prices rose by a more moderate INR 1,000/ton ($12/ton), while import offers were reported at approximately $1,230-1,290/ton CFR India.

In contrast, domestic HDPE prices were rolled over across all grades. Relatively comfortable availability allowed producers to maintain existing prices despite cautious downstream demand.

Buyers Continue to Purchase on a Need Basis

Despite the latest price increases and limited spot availability, converters in the pipe, packaging and moulding sectors continue to follow a largely hand-to-mouth purchasing strategy.

Most buyers remain unwilling to build significant inventories and are focusing mainly on immediate requirements due to uncertainty over how long the latest price increases can be sustained.

Domestic polymer prices are expected to remain firm in the near term as buyers adjust to the new price levels and continue monitoring import replacement costs and upstream markets. Asian feedstock prices, regional supply conditions and freight rates will remain important factors influencing future producer price decisions.

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