India’s PP Prices Rise Again as Producers Extend August Rally

India’s domestic PP market moved higher again on August 21, with major producers announcing another round of price increases across their product portfolios. The latest hikes of INR2,000-3,000/ton ($23-34/ton) extend the upward trend that began in late July, indicating that suppliers continue to focus on protecting margins despite resistance from downstream converters.

The latest revisions varied by grade. Some suppliers increased homo-PP raffia by INR2,000/ton ($23/ton), while several injection moulding, film and fiber, lamination, and random copolymer grades saw increases of INR3,000/ton ($34/ton). Certain impact copolymer grades were also raised by around INR2,000/ton.

These latest adjustments followed a significant INR5,000/ton ($57/ton) increase at the beginning of August. That earlier revision had already taken cumulative PP increases to INR10,000/ton across the two price hikes announced on July 27 and August 1. With the August 21 increases, the upward pricing cycle has now continued for nearly a month, although the total increase differs depending on the grade and producer.

Higher upstream costs continue to support producers’ pricing decisions. Crude oil has recovered sharply from its early-August lows amid renewed geopolitical tensions in the Middle East, strengthening cost pressure across the PP chain. Propylene values have also remained elevated, keeping production economics under pressure and reducing producers’ willingness to offer discounts.

However, downstream converters continue to face difficulty absorbing the repeated increases. Buyers have struggled to pass higher resin costs on to their customers, particularly in price-sensitive sectors such as woven sacks and flexible packaging. As a result, purchasing has largely remained focused on immediate requirements, with converters reluctant to build inventories at increasingly higher price levels.

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