India’s polymer market splits as PVC strengthens while PP and PE decline under BIS impact

India’s domestic polymer market has taken a divergent path in May, with polypropylene (PP) and polyethylene (PE) prices witnessing sharp reductions, while PVC has moved higher due to tightening import availability and stronger control from local producers. The upcoming BIS implementation for PVC imports in June is expected to further restrict inflows, strengthening the position of domestic suppliers.

The divergence became clear in the latest price announcements released on May 1, highlighting a shift from the earlier trend where all major polymers moved in the same direction.

PP and PE prices cut after BIS enforcement

In the polyolefins segment, producers reduced prices significantly following the full implementation of mandatory BIS certification (IS 10910 and IS 10951:2020) from April 24, 2026.

PP raffia and fiber grades dropped by INR 7,000 per ton ($73/ton). LLDPE film and drip grades were lowered by INR 7,000–9,000 per ton ($73–94/ton), while other LLDPE grades declined by INR 5,000 per ton ($52/ton). LDPE saw some of the steepest corrections, with film grades down by INR 7,000–8,000 per ton ($73–84/ton) and extrusion grades falling by INR 10,000 per ton ($105/ton). HDPE film and blow molding grades decreased by INR 2,000 per ton ($21/ton), while other HDPE grades, including pipe, were reduced by INR 3,000 per ton ($31/ton).

Market participants view these reductions as a strategic move by producers to stabilize the market during the transition period. By lowering prices, they aim to offset the impact of reduced imports and ensure continued demand from converters.

Monsoon outlook adds demand uncertainty

Seasonal factors are also influencing market sentiment. May typically marks the final phase of strong infrastructure demand before the monsoon season begins.

However, expectations of a slightly below-normal monsoon—around 92% of the long-term average—have introduced uncertainty. A delayed monsoon could temporarily support demand for irrigation pipes and agricultural films, benefiting PE consumption. On the other hand, weaker rainfall could impact rural income and reduce demand for PP in sectors like fertilizers and packaging later in the year.

PVC gains on tightening import supply

In contrast, PVC prices—particularly the K67-68 suspension grade—have increased by INR 2,000 per ton ($21/ton), reversing part of the earlier correction seen in April.

This upward movement is largely driven by reduced availability of imported material. Higher prices in Europe are attracting global suppliers, especially from China, leading them to divert shipments away from Asia. As a result, fewer competitive cargoes are reaching India, supporting domestic price levels.

Additionally, supply dynamics differ by feedstock. While carbide-based PVC remains relatively available, ethylene-based material is tighter, further supporting prices.

BIS deadline to further tighten PVC market

The upcoming BIS certification requirement for PVC imports, set for late June 2026, is expected to further restrict supply. Importers are becoming cautious about placing orders that may face clearance issues after the deadline, leading to reduced import activity.

With declining import competition and stable domestic production, local PVC producers are gaining stronger pricing control. Unlike PP and PE, where prices were reduced to ease the transition under new regulations, PVC producers are maintaining firm pricing and even testing upward revisions.

Overall, India’s polymer market is currently defined by this clear split—polyolefins adjusting downward due to oversupply and regulatory shifts, while PVC strengthens on tightening imports and improving producer leverage.

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