India’s Polymer Market Shifts Gears: MoU Decline Spurs Rise in Spot Buying and Trader Deals

Key Highlights:

• MRPL's PPHP Lamination grade (HY035R) in Rajkot: ₹1,04,500/MT
• PVC K67 import prices range: ₹63,000–₹68,000/MT at Mundra
• PE MoU signings drop by 20–40% across India
• Flexible procurement replacing traditional MoUs

Price Snapshot Across Markets

• In Bhiwandi, MRPL's PPHP TQ Film (HF010) is priced at ₹1,02,000/MT, while HMEL's PPHP IM (M12RR) is at ₹99,500/MT and Marlex Raffia (HGX030SP) at ₹98,000/MT. 
• MRPL’s PPHP Lamination grade (HY035R) in Rajkot is quoted higher at ₹1,04,500/MT, and in Delhi, Haldia’s PPCP Random (M312) commands ₹1,06,250/MT. 
• For HDPE in Ahmedabad, HMEL’s grades range between ₹90,020/MT and ₹95,320/MT, with PE100 Natural being the lowest and HDPE Raffia the highest. 
• On the import front, PVC K67 prices at Mundra vary based on origin and brand—from as low as ₹63,000/MT for Xinfa (China) to ₹68,000/MT for premium Taiwanese and Japanese brands like CGPC, Formosa, and ShinEtsu. 
• Most mainstream Chinese, Indonesian, and US-origin K67 prices hover around ₹66,000/MT.

Polymer Demand and Supply

• India’s polymer sector has entered a phase of accelerated transformation in 2025, driven by a decoupling of traditional supply agreements and evolving buying behaviors. Demand for polymers, particularly Polyethylene (PE) grades, continues to show robust double-digit growth, fueled by expansion in packaging, consumer goods, and infrastructure sectors.
• Despite this strong demand surge, the supply landscape is undergoing a recalibration.Manufacturers, once heavily reliant on long-term Memoranda of Understanding (MoUs) with processors, are observing reduced volumes tied under fixed agreements. 
• The traditional model, which provided predictability for both producers and converters, is now being challenged by a preference for flexible procurement. With fewer annual MoUs being signed, supply chains are increasingly driven by real-time negotiations, spot trades, and strategic trader partnerships.
• At the same time, trading companies and secondary market players are gaining a more prominent role, providing processors with multiple sourcing avenues. This decentralized supply model is fostering greater price competition and allowing mid-sized and smaller processors- previously constrained by large-volume MoUs - to access raw materials more competitively.

Market News: Decline in MoUs and Rise in Spot Trades

• As per the latest industry report, MoU signings in India’s polymer market have declined significantly by 20–40%, with the sharpest fall observed in Polyethylene grades. This shift marks a structural change rather than a temporary deviation. Indian processors, inspired by Chinese procurement practices, are increasingly exploring short-term contracts, spot market deals, and leveraging digital B2B platforms for competitive sourcing.
• Producers are adjusting their strategies accordingly, showing a stronger inclination towards establishing MoUs with traders and bulk buyers who can guarantee flexible offtake terms. Several manufacturers are also enhancing their digital sales channels and expanding collaborations with trading partners to maintain market reach amid reduced direct processor tie-ups.

Expert Opinion: Evolving Procurement Strategies

The Indian polymer market is expected to experience heightened spot market activity, with price volatility becoming a key feature. Manufacturers are likely to adopt hybrid models - offering a mix of MoUs, trader partnerships, and digital sales - to balance stability and market responsiveness. Flexible procurement is anticipated to become the new norm, enabling processors to better align purchasing with real-time demand trends.