Indian Producers Raise PP Prices While PE Holds Steady; PVC Paste Resin Also Increases

Major Indian producers announced fresh domestic PP price hikes on September 21, increasing offers by up to INR3,500/ton ($37/ton), while leaving PE prices unchanged. The latest moves follow several rounds of increases across India’s PP, PE and PVC markets in recent weeks, supported by higher global energy and feedstock costs and rising import replacement values.

Although stronger costs have allowed domestic producers to raise prices, cautious downstream buying continues to limit the extent to which these increases can be passed on to converters.

PP Prices Move Higher, PE Rates Remain Unchanged

A major joint-sector petrochemical producer based in Kolkata increased its domestic PP raffia prices by INR3,500/ton and raised all other PP grades by INR2,500/ton ($26/ton), effective September 21.

A prominent state-backed joint venture in north-western India followed with a uniform INR2,500/ton increase across its domestic PP range. The simultaneous adjustments indicate continued firm pricing sentiment among major Indian producers.

India’s largest public-sector refining and petrochemical company also revised its polymer prices on September 21, raising domestic PP prices by INR2,500/ton while maintaining its PE prices. Its deemed export PP prices were also left unchanged.

The decision to roll over PE prices comes after significant increases earlier in September, giving the segment some room to stabilize while PP prices moved higher.

PVC Paste Resin Prices Also Increase

India’s PVC market has also seen another price adjustment, this time involving PVC paste resin rather than the suspension-grade PVC commonly followed in the domestic market.

A major southern India-based private-sector specialty chemical and PVC producer increased domestic PVC paste resin prices by INR8,000/ton ($84/ton), effective September 19.

The latest increase follows other upward revisions across India’s PVC market earlier this month. Earlier hikes in suspension PVC were supported by higher import replacement costs and stronger upstream prices. However, the latest paste resin increase does not necessarily indicate a similar move in suspension PVC prices.

Higher Costs Meet Cautious Buying

Indian converters continue to deal with increased raw material costs across PP, PE and PVC, while their ability to transfer these higher costs to end-users remains restricted.

Converters in flexible packaging, woven sacks, pipes, automotive components and consumer goods are therefore expected to maintain cautious procurement. Most buyers continue to concentrate on immediate production needs rather than building inventories at elevated price levels.

Higher Asian energy and resin prices, together with increased freight costs for imports into India, have lifted import replacement costs and provided domestic producers with additional support for price increases.

However, the ability to push prices further will depend on downstream demand and the competitiveness of local material against imported cargoes.

In the near term, Indian PP, PE and PVC markets will continue to be influenced by feedstock developments, global energy prices and import parity. While producers remain focused on protecting margins amid higher costs, resistance from converters could limit further aggressive increases unless supply tightens further. Market participants will continue watching monomer availability and domestic demand as manufacturing activity builds ahead of the festive season.

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