India’s PP Raffia Prices Rise $80–85/ton Above HDPE and LLDPE Film

India’s polyolefin market has seen a notable shift in price relationships, with Middle Eastern polypropylene (PP) raffia now trading above high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE) film on a CIF India basis. After remaining cheaper than these PE grades for much of the first half of 2026, PP raffia has moved into a premium, which widened to around $80–85/ton by mid-October.

The change reflects differing market conditions for the two polymer chains. PP has received support from relatively firm seasonal demand and a sharp rise in propylene costs, while PE has faced slower buying activity from film and packaging converters. This divergence has become more pronounced in recent weeks, despite major Indian producers largely keeping official list prices for standard polyolefin grades unchanged.

PP Raffia Moves Ahead of HDPE and LLDPE Film

During the first half of 2026, Middle Eastern HDPE and LLDPE film generally commanded higher prices than PP raffia in India. The relationship began to change around late June and early July, when PP gained strength relative to PE.

Since then, PP raffia has maintained its premium, with the gap widening further by mid-October. Weekly average prices for Middle Eastern homo-PP raffia reached approximately $1,400/ton, compared with around $1,320/ton for HDPE film. This placed PP raffia roughly $80–85/ton above HDPE film, with a similar reversal observed against LLDPE film.

LDPE film remains an exception, continuing to trade above PP raffia and the other PE film grades.

The shift does not mean that PE prices have failed to recover. HDPE and LLDPE film have both moved upward from their mid-year lows, but PP raffia has advanced more strongly, reflecting comparatively better demand support and steeper feedstock cost increases.

Different Demand Conditions Shape Market Performance

Although both PP and PE producers have faced higher production costs, their ability to pass those increases on to buyers has varied considerably because of differences in downstream demand.

In the PE segment, purchasing activity from film and flexible packaging converters has weakened. Buyers have generally avoided commitments beyond immediate requirements, citing high resin prices, working-capital constraints and uncertainty over demand for finished products.

Overseas suppliers and traders have also reported slower Indian PE buying in recent weeks. Competition from alternative import origins has further limited sellers’ pricing power, although the availability and competitiveness of cargoes vary by grade and delivery schedule.

PP has shown greater resilience, particularly in selected packaging applications. Post-harvest demand has supported raffia grades used in woven sacks for grain, fertilizers and other bulk commodities. These requirements have encouraged some buyers to secure material despite higher prices.

A Mumbai-based trader said spot transactions had been particularly active. Although domestic list prices remained unchanged, PP replacement costs continued to rise, while suppliers reduced rebates. Buyers in the raffia and woven-sack segments were willing to pay premiums to meet urgent post-harvest orders.

However, PP demand has not recovered across all segments. Many converters continue to purchase only as needed. Seasonal requirements have generated pockets of stronger buying, whereas PE film buyers have generally shown less urgency to replenish inventories.

Rising Propylene Costs Give PP an Additional Advantage

The difference in demand has coincided with a widening gap between the feedstock markets for PP and PE.

Spot propylene prices on a CFR China basis have increased by a cumulative 55% since early July, reaching $1,350/ton, their highest level in six months. The rally strengthened further after China returned from its National Day holiday, with prices climbing 12% from early-October levels.

Ethylene prices have also risen substantially, gaining 43% since mid-July. However, their more recent increase has been much smaller: CFR China prices advanced by just 2% from the beginning of October to $1,170/ton.

As a result, propylene has reached a premium of $180/ton over ethylene, highlighting the uneven cost pressures affecting the two polymer chains.

Limited propylene availability has contributed to the increase. High propane costs, reduced operating rates at some propane dehydrogenation (PDH) units and cracker maintenance have constrained regional spot supply, adding further upward pressure.

While rising ethylene prices continue to support PE costs, the much sharper increase in propylene has strengthened PP suppliers’ pricing expectations and raised replacement costs across regional export markets.

Domestic List Prices Remain Stable Despite Firmer Spot Markets

The contrasting market conditions have also influenced pricing strategies among major Indian producers. For standard LLDPE and HDPE film grades, official list prices have largely remained unchanged amid sluggish demand and continued buyer resistance. Selective increases have been more achievable in specialized segments such as HDPE pipe, where infrastructure-related demand has offered additional support.

PP has followed a somewhat different pattern. Although official list prices have also remained largely stable, Middle Eastern and Chinese import offers increased by around $10–30/ton last week. Reduced trade discounts have also supported firmer effective prices in parts of the domestic distribution market.

Consequently, PP’s strength has been more visible in higher import replacement costs, narrower discounts and firmer spot transactions than in broad-based increases to official producer price lists.

Overall, the widening premium of PP raffia over HDPE and LLDPE film highlights the different levels of pricing support across India’s polyolefin market. Stronger seasonal demand and rapidly rising propylene costs have helped PP maintain its upward momentum, while slower PE purchasing continues to limit sellers’ ability to pass on higher costs.

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