India’s PP, PE and PVC Price Rally Continues in September Despite Buyer Resistance

India’s domestic polymer markets entered September with another round of price increases across PP, PE and PVC, as local producers moved to safeguard margins amid sharply higher feedstock costs, rising freight expenses and stronger import parity. However, converters and extruders continue to face difficulties in passing these increases on to end users, resulting in a clear pricing standoff across major industrial regions.

Domestic Producers Raise Offers Across Multiple Grades

Indian producers implemented fresh increases in early September, supported by firmer regional benchmarks. PP prices were raised by INR4,000/ton ($42/ton) effective September 5, following grade-specific adjustments earlier in the month.

PVC prices increased by INR2,000/ton ($21/ton) on September 7, in addition to a similar increase implemented on September 1. Meanwhile, effective September 7, HDPE rose by INR1,000/ton ($11/ton), LLDPE film increased by INR1,000–2,000/ton ($11–$21/ton), and LDPE coating grades climbed by up to INR3,000/ton ($32/ton).

The main driver behind these revisions has been the sharp increase in crude and feedstock costs. Weekly average Brent crude rose from $72/bbl in late June to $96–97/bbl during September 7–8, representing an overall increase of around 33%, largely due to concerns over Middle Eastern supply.

This strength has also moved into Asian monomer markets. Over the same period, weekly average C2 spot prices on a CFR China and Southeast Asia basis increased by $310/ton, while propylene prices on CFR China and Southeast Asia bases rose by $260–280/ton.

Higher Feedstock Costs Push Up Indian Import Parity

The surge in monomer costs translated into higher import offers at India’s major ports from late July through early September. SPVC K67-68 offers led the gains, increasing by $130/ton, or 20%, from their mid-July low. LDPE film and Middle Eastern PPH raffia prices rose by $110/ton and $120/ton, respectively.

During the same period, Middle Eastern HDPE film gained $70/ton, while LLDPE C4 film increased by $65/ton.

A modest appreciation in the rupee, from above INR95.20/USD in late July to around INR94.50/USD by early September, provided some relief to importers. However, traders said this benefit was more than offset by higher ocean freight costs. Since polymer resin is heavily transported in 20ft containers because of weight limitations, increased ocean surcharges have added significantly to landed costs.

Currency Volatility Makes Importers More Cautious

Regional traders are also highlighting foreign exchange volatility as a major obstacle to long-term import commitments. A Mumbai-based PVC trader said the recent rupee appreciation, driven by central bank liquidity swaps rather than stronger export growth, has increased concerns about a potential reversal before imported cargoes arrive.

A Mumbai-based PP and PE trader similarly noted that unpredictable freight surcharges combined with sharp currency movements make forward import pricing increasingly difficult, particularly for unhedged importers exposed to position risk.

The same cautious approach is visible in inland markets. A New Delhi-based polymer trader said local inventories are moving slowly and buyers are resisting each price increase. Many northern traders are therefore operating on a back-to-back basis, avoiding large inventories while end-user demand remains uncertain.

Weak Agricultural Demand Limits PVC Buying

Despite the latest domestic price increases, physical demand from converters remains subdued. In the PVC pipe sector, a 13% nationwide rainfall deficit has not translated into stronger agricultural buying, as localized deficits of more than 30% in key farming regions have affected rural cash flows.

A Mumbai-based trader said farmers are postponing new pipe purchases and focusing instead on basic repairs.

Converters are also finding it difficult to pass higher resin costs through the supply chain without affecting sales volumes, keeping purchases largely on a hand-to-mouth basis.

Until post-monsoon construction and agricultural demand strengthen enough to absorb the latest domestic price increases, Indian polymer markets are expected to continue operating with short and cautious buying cycles.

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