Chemicals & Polymers

Indian PP prices remained steady, while China witnessed minor declines amid weak demand and soft feedstock support. High inventories and reduced end-user activity kept sentiment bearish. Supply disruptions from planned maintenance were offset by new capacities. Overall, PP prices are expected to stay under pressure through the rest of July.

MIBK prices declined ₹1/kg this week due to high port inventories, weak downstream demand, and falling replacement costs. While demand from paints and packaging remains low, rubber and bulk drug sectors show early signs of revival. Deepak Phenolics’ entry may alter domestic supply dynamics by Q3 2025.

Despite weak downstream demand, domestic toluene prices in India rose ₹2/kg this week, tracking a sharp global crude oil rally. While pharma demand offers some support, monsoon-led slowdowns continue to affect paints, coatings, and packaging segments. Rising crude prices and tight refinery margins could drive further price volatility.

Acetic Acid prices in India dropped 12% amid weak downstream demand, monsoon disruptions, and cheaper Chinese imports. International prices also declined, with spot deals as low as ₹28/kg. While demand from Acetonitrile and dye sectors offers limited support, overall sentiment remains bearish, with further price corrections likely in the short term.

PET prices dropped last week due to weak raw material costs and sluggish demand, despite a slight price hike by Wankai. Leading Chinese producers have begun output cuts, but high inventories persist. Exports rose in May, though global competitiveness is under pressure from higher freight rates and US anti-dumping tariffs.

Acetone prices fell by ₹3/kg amid improved domestic production, steady import arrivals, and sluggish downstream demand. Paints, IPA, and DAA segments remain weak, while upcoming pharma sector demand could provide limited support. With bearish feedstock trends and rising availability, prices are expected to stay soft in the short term.

PVC prices saw a marginal rise in early July, supported by export demand and energy market trends. However, subdued domestic consumption, rising inventory, and limited downstream activity are capping major gains. While supply remains high due to increased plant operations, the market is expected to stay stable with slight upward potential.

Toluene prices fell ₹2/kg amid weak demand from paints and coatings sectors and improved domestic supply. Stabilizing Middle East tensions and rising US crude inventories have further weighed on sentiment. Although pharma-related demand offers limited support, refining margins remain under pressure. A price recovery appears unlikely in the short term.

Polyethylene prices remained stable in East China during early July, supported by improving ethylene margins and slight production disruptions in LDPE. Indian producers raised domestic prices modestly, while global supply adjustments continue. However, downstream demand remains subdued, and the market awaits clearer cues from packaging, agriculture, and macroeconomic trends in H2 July.