India’s PP, PE, and PVC Prices Continue to Rise Amid Buyer Resistance

India's polymer market is experiencing a continued rally in prices for polypropylene (PP), polyethylene (PE), and polyvinyl chloride (PVC) as the surge extends into September. Local producers are striving to protect their margins amidst rising upstream feedstock costs and elevated freight charges. However, this has led to a pricing deadlock, as converters and extruders face challenges in passing these cost increases to end users, resulting in significant buyer resistance.

The rise in PE prices, particularly, is supported by strong demand from the packaging sector. High-density polyethylene (HDPE) film prices have increased by $80 per ton, while low-density polyethylene (LDPE) linear film prices have risen by $45 per ton. The demand for food packaging has been bolstered by COVID-19 lockdowns, which have increased home delivery orders, thereby supporting the PE market.

In the PP market, prices have edged up by $20 per ton despite a weaker domestic demand, attributed to a fall in automobile sales and high inventories among downstream converters. The limited spot offers and increased export activities, which have risen by 60% this year, have contributed to the price hikes.

Overall, while the Indian economy shows a robust growth rate of 7.8% year-on-year, the polymer market faces challenges due to the ongoing price rally and buyer resistance. Import-reliant converters are likely to continue facing elevated replacement costs unless there is a significant softening in upstream ethylene prices.

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