India’s PP Raffia Prices Break Above $900 CIF Amid Tightening Supplies

Highlights
• Raffia import prices touch a five-month peak
• Seasonal packaging demand supports offtake
• Domestic majors implement a second February hike
• Strong buying interest seen at trade fair

Import prices for PP raffia in India have extended their upward trend, with offers from the Middle East rising by $20/ton at both ends to $880–910/ton CIF India, cash. The upper end has crossed the $900/ton mark, reaching the highest level seen in over five months amid tightening regional supplies and firmer benchmarks.

Market participants report reduced availability of competitive spot cargoes, which has lifted the price floor significantly. Buyers are moving to secure volumes in anticipation of further increases, as peak seasonal demand and infrastructure-led projects are expected to sustain consumption through March.

An India-based representative of a global polyolefins producer said the PP raffia market is tightening due to regional supply constraints, adding that global firmness and limited inventories are likely to support higher pricing in the near term. Producers are also facing ongoing cost pressures and are seeking to protect margins.

The bullish sentiment was evident at PlastIndia 2026, where strong participation from agricultural and industrial woven sack segments reflected robust demand. During the event, domestic producers implemented a fresh INR2,000/ton hike, following an earlier INR2,500/ton increase this month, bringing total February hikes to INR4,500/ton.

Workable domestic prices for Middle East-origin raffia are now reported at INR97,000–101,000/ton FD, while Chinese-origin raffia is quoted at around INR96,000/ton and below. Traders note that the narrowing spread between landed import costs and local offers signals a tightening supply environment ahead of planned regional plant maintenance.

Outlook

The outlook remains bullish, supported by strong demand for woven sacks ahead of the harvest season, particularly for grain storage and fertilizer packaging. Combined with lean inventories, higher replacement costs, and supply constraints from scheduled maintenance, market players expect the uptrend to continue through the first quarter, with further incremental gains likely through March.

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