India’s Imported PE Market Extends Recovery as Local Prices and Replacement Costs Strengthen

India’s imported PE market continued to recover this week, recording a third straight week of gains after nearly three months of declines. Higher domestic prices, firm replacement costs and elevated freight rates supported Middle Eastern import offers, although buyers remained cautious because of squeezed processing margins.

Despite softer crude oil and regional ethylene prices during the week, disciplined supply and steady downstream demand helped maintain the market’s firmer tone.

The recent price increases mark a clear change from the prolonged correction that followed the sharp rise in PE prices in early March, when the US-Iran conflict disrupted supplies. Prices then entered a sustained downward phase from early April. The three-week recovery indicates that the market may be approaching a floor as replacement costs strengthen and suppliers regain some pricing power.

Middle Eastern producers continued to support their offers by restricting spot availability amid firm replacement costs and ongoing freight challenges. LDPE film recorded the strongest gains, reflecting continued global tightness in high-pressure PE supply, while LLDPE film also moved higher. HDPE film posted smaller increases but remained supported by the overall firm market environment.

Buying activity, however, remained cautious, with most buyers purchasing only immediate requirements as processing margins stayed under pressure. Nevertheless, steady demand from flexible packaging and industrial film sectors, along with preparations for the upcoming festive season, continued to provide support. These demand factors helped the market absorb higher import costs and contributed to the ongoing recovery.

Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.