Indian PP, PE Markets Gridlocked as October List Hikes Take Effect

The Indian polypropylene (PP) and polyethylene (PE) markets are currently facing a gridlock as October list price hikes take effect. Producers have increased prices to offset higher upstream costs, but this has led to a constrained market response, with buyers and sellers struggling to transact. This situation indicates cautious demand and limited pass-through in the market.

The All India Plastics Manufacturers' Association (AIPMA) has appealed to the government for intervention, citing exponential price hikes by domestic polymer producers. These increases are threatening the survival of numerous plastics processing plants in India. The AIPMA claims that producers are exporting significant quantities of raw materials, leading to a domestic shortfall.

In response to increased import offers, Indian producers have also raised domestic prices for polyethylene and PP. For instance, PP prices were increased by 2,000 rupees per ton, while LDPE prices rose by 7,500 rupees per ton. The AIPMA has proposed the establishment of a petrochemical regulatory authority to oversee the market and prevent undue profiteering.

The current market conditions are exacerbated by rising shipping costs and limited availability of offers to South Asia, leading to increased CFR prices in India. As a result, Indian plastics manufacturers are calling for the removal of anti-dumping duties and a ban on the export of raw materials to stabilize the domestic market.

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