Global PE Markets Struggle Amid Weak Demand and Oversupply
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Polyethylene (PE) prices remained stable domestically, with minor adjustments across segments. Global markets faced bearish sentiment due to weak demand, oversupply, and cautious trading in Asia and the US. Indian suppliers reduced prices to clear inventories, while processors began stockpiling. Recovery is unlikely in the near term due to market uncertainties.
Key Highlights
- Polymer Price Stability
- PP Raffia: ₹88/kg; LLDPE: ₹86.5/kg (+₹0.5); HDPE PE100 Natural: ₹84/kg (-₹2).
- Demand and Supply Trends
- Weak global demand and oversupply persist, pressuring HDPE prices in Asia.
- Key Market News
- Anhui Haoyuan Chemical restarted its Styrene Monomer plant in China.
- Expert Insights
- Bearish market sentiment driven by oversupply, cautious trading, and sluggish Asian demand.
Polymer Price Trends: Stability with Minor Adjustments
- PP Raffia (±0) Rs. 88/kg levels Ex Godown
- PP Film (±0) Rs. 98.5/kg levels Ex Godown
- PPCP (±0) Rs. 95.75/kg levels Ex Godown
- PP Lamination (±0) Rs. 95/kg levels Ex Godown
- PVC Low K (DG700) Rs. 79/kg Ex Nhava Sheva/Mundra
- PVC Low K (B57) Rs. 82.75/kg Ex Nhava Sheva/Mundra
- PVC LG LS100H Rs. 76.75/kg Ex Mundra/Bhiwandi
- LLDPE (+0.5) Rs. 86.5/kg Ex Mundra/Bhiwandi
- LDPE prices are around (±0) Rs.116/kg Ex Mundra/Bhiwandi
- HDPE PE100 natural (-2) Rs. 84/kg Ex Mundra/Bhiwandi
- HDPE PE100 black (±0) Rs. 88/kg Ex Mundra/Bhiwandi
- HDPE HM (±0) Rs. 88/kg Ex Mundra/Bhiwandi
- HD Blow Molding (±0) Rs. 91/kg Ex Mundra/Bhiwandi
Supply and Demand Analysis: Bearish Global Market Outlook
- The polyethylene (PE) market faced bearish trends globally due to weak demand and oversupply.
- In Asia, demand remained sluggish as a stronger US dollar and lower upstream ethylene values weighed on sentiment. Import activity in China slowed, with traders avoiding January commitments due to year-end stockpiles and the upcoming Lunar New Year.
- Oversupply in HDPE grades further pressured prices in Southeast Asia.
- North American offers for February delivery to Southeast Asia were limited, while competitive US offers expected for Vietnam in late February to March 2025 added to the market’s bearish outlook.
- In India, spot market activity declined as buyers had already stocked up. Suppliers reduced prices to clear inventories amidst sluggish demand and abundant local supply.
- Globally, markets were quieter ahead of the Christmas and New Year holidays in Europe and the US, further amplifying the bearish sentiment in the PE market.
Market News: Key Developments in HDPE and Polyethylene
- Anhui Haoyuan Chemical has restarted its Styrene Monomer (SM) Plant, which was shut in mid-December, 2024 for maintenance work. The Plant is located in Anhui, China.
- HDPE/LLD Updates: Intl. Markets assessed as soft amid lower Import demand from China and India amid depreciating Currencies. HM and LLD deals done at 900$ for India Market.
- Domestic demand in India is good due to upcoming shutdowns and Processors started building inventory. Open Market Prices may recover by another 1-2 Rupees.
- Yulin Chemical is planning to shut its one MEG Line for maintenance work. The Line is located in China.
- Sinopec has again increased its Propylene list Prices in east China.
Expert Opinion: Prolonged Bearish Sentiment in the Polyethylene Market
- The global polyethylene market remains bearish due to weak demand, oversupply, and cautious trading ahead of holidays. Factors include sluggish activity in Asia, reduced Indian spot prices, and limited North American offers, with no near-term recovery expected.
Daily Market Report
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Limited PE Imports in India Despite Supply Boost
Polymer prices remain stable with minor fluctuations in specific grades. Domestic PE supplies are expected to increase as key Indian producers resume operations. Import demand stays limited amid uncertainty and inventory losses. International polymer production restarts and a higher exchange rate for import valuation add to market dynamics.
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PET Market Sees Rising Costs and Upcoming Supply Increases
PET prices have increased due to rising production costs, fuelled by surging crude oil prices and higher polyester raw material rates. While new production facilities may ease supply constraints, short-term growth remains limited as downstream buyers adopt a cautious approach. The approaching Spring Festival is expected to bolster domestic demand for PET, supporting market stability amidst rising supply levels.
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