India's Polymer Demand Faces Economic Slowdown Amid R-PET Mandate
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The decline in polymer demand and prices in India is expected to persist, driven by economic conditions, supply chain dynamics, increased domestic production, crude oil price fluctuations, government policies, and environmental factors, shaping market trends and stakeholder decisions.
Polymer Price
- PP Raffia: Rs. 88/kg (±0) Ex-Godown
- PP Film: Rs. 98.50/kg (±0) Ex-Godown
- PPCP: Rs. 95.75/kg (±0) Ex-Godown
- PP Lamination: Rs. 95/kg (±0) Ex-Godown
- Low K (DG700): Rs. 79/kg Ex-Nhava Sheva/Mundra
- Low K (B57): Rs. 82.75/kg Ex-Nhava Sheva/Mundra
- LG LS100H: Rs. 76.75/kg Ex-Mundra/Bhiwandi
- LLDPE: Rs. 86.5/kg (+0.5) Ex-Mundra/Bhiwandi
- LDPE: Rs. 116/kg (±0) Ex-Mundra/Bhiwandi
- HDPE PE100 Natural: Rs. 84/kg (-2) Ex-Mundra/Bhiwandi
- HDPE PE100 Black: Rs. 88/kg (±0) Ex-Mundra/Bhiwandi
- HDPE HM: Rs. 88/kg (±0) Ex-Mundra/Bhiwandi
- HD Blow Molding: Rs. 91/kg (±0) Ex-Mundra/Bhiwandi
Polymer Demand and Supply
- India's upcoming enforcement of minimum content legislation in 2025, mandating 30% R-PET content in packaging, is expected to impact polymer demand dynamics.
- Despite this, market players continue to prioritize cost-competitive virgin materials due to profitability concerns.
- The slower economic growth in India has dampened consumer spending, leading to reduced demand for consumer goods heavily reliant on polymer materials for packaging and production.
- This decline in purchasing power has created a ripple effect, lowering demand for polymers in manufacturing. Consequently, supply pressures may ease, but demand recovery remains uncertain in the current economic environment.
Polymer News
- Sinopec Jiujiang Company is planning to shut its Polypropylene (PP) Unit in April, 2025 for planned maintenance work. The Unit is located in Jiujiang, China.
- Zhejiang Petroleum & Chemical (ZPC) has restarted its High Density Polyethylene (HDPE) Unit in December, 2024 after maintenance work. The Unit is located in Zhoushan, China.
- Hyosung Vina is aiming to shut its Polypropylene (PP) Unit in February, 2025 for maintenance work of around 30 days. The Unit is located in Vung Tau, Vietnam.
- Equate offered their LLDPE Film at US$ 910/MT, HDPE Film at US$ 920/MT and HDPE Blow (6147/6200) at US$ 910/MT, CIF Nhava Sheva for January, 2025 shipment.
- Hyosung intends to shut its No.2 Propane Dehydrogenation (PDH) Unit for maintenance work starting from February until March, 2025. The Unit is located in Ulsan, South Korea.
Expert Opinion
- It is expected that the decline in market demand for polymer products in India and the resulting price drop will continue to be influenced by a complex interplay of economic conditions, supply chain dynamics, increases in domestic production, crude oil price fluctuations, government policies, and environmental considerations.
Daily Market Report
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