HDPE Market Steady in India Amid Global Divergence

Key Highlights:

• HDPE prices in Ahmedabad ranged from ₹89,000/MT to ₹96,930/MT.
• China HDPE prices declined ~0.5% amid real estate slowdown and high stocks.
• Europe saw a ~0.8% uptick due to supply tightness and auto recovery.
• Market remains cautious amid weak demand and global uncertainties.

HDPE Polymer Market Price

• In Ahmedabad, HDPE prices for various grades ranged between ₹89,000/MT and ₹96,930/MT. Notable grades include R0150S (Raffia) at ₹96,500/MT, F0146D (Films) at ₹96,930/MT, and PE100 Natural P0049D at ₹95,000/MT. 
• Near-prime HDPE options such as BM N0146D and PE80 NP0148D were priced lower at ₹92,050/MT and ₹89,000/MT respectively.
• For LLDPE, pricing was relatively higher across multiple grades and regions. In Ahmedabad, prime grades like IM M5026L reached ₹106,750/MT, F0118LM (1 MFI Non Slip) stood at ₹106,000/MT, and E0725L (Extrusion Coating) was at ₹104,250/MT. 
• Roto moulding grades such as R0536LU and R0536L were priced around ₹101,130/MT and ₹100,870/MT. Near-prime LLDPE N2024L was quoted at ₹104,750/MT.
• In Delhi, prime LLDPE prices like F0120L (1 MFI Slip), F0218L (2 MFI Non Slip), and F0118L (1 MFI Non Slip) were around ₹98,150/MT to ₹98,480/MT. In Bhiwandi, F0218L (2 MFI Non Slip) was priced slightly lower at ₹95,480/MT.

HDPE Demand and Supply: Construction Slowdown Hits China, Europe Holds Firm

• In China, HDPE prices fell by approximately 0.5% this week due to sluggish demand from the construction sector, elevated inventories, and weak seasonal consumption. 
• Despite stable ethylene feedstock prices and smooth plant operations, the downstream construction industry's muted activity weighed heavily on demand. 
• Notably, housing sales by China’s top 100 developers dropped 23% year-on-year in June, reflecting the real estate sector’s prolonged slowdown. As a result, HDPE consumption in pipe and building applications remained under pressure.
• Conversely, Europe witnessed a modest HDPE price increase of about 0.8%, primarily driven by tight supply due to logistical issues and production disruptions. While overall demand was still tepid, the limited material availability supported firmer price levels. 
• The auto sector showed slight recovery with a 7% rise in new car registrations in June, contributing marginally to HDPE demand.

Market News: Ethylene Prices Stable, Buying Sentiment Low

• In both regions, cautious buyer sentiment and geopolitical uncertainties continued to suppress market activity. In Germany, falling ethylene costs did not translate into HDPE price reductions due to restricted supply. 
• Spot trading slowed significantly as buyers awaited the outcome of July’s ethylene contract negotiations. Despite some support from the automotive industry, high stock levels and competitive pricing kept market participants wary.
• In China, the real estate downturn and weak end-use sector performance overshadowed any cost stability from feedstocks, keeping overall HDPE offtake soft. Plant operations remained undisrupted, indicating sufficient production to meet reduced demand.

Market Expectation: Price Pressure Likely to Persist Without Demand Revival

• HDPE prices in China are expected to remain under downward pressure unless there is a significant rebound in construction activity or a seasonal demand uptick. Producers may continue operating steadily but will likely face challenges in lifting prices due to stagnant consumption.
• In Europe, while prices may hold firm in the short term due to low availability, the likelihood of substantial increases is limited. Demand remains sluggish, and existing inventories are relatively high. Any meaningful recovery will depend on improved end-user demand and easing geopolitical uncertainties.