PE Market: Supply Strain Amid China’s Weak Imports, Domestic Prices Hold Steady
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Polymer prices showed varied adjustments in November, with notable reductions in PP Raffia, PPCP, and LLDPE. China’s post-holiday market strength and India’s cautious stance due to oversupply influence demand dynamics, while key plant restarts and freight cost reductions could shift supply availability. JPFL’s BOPP price hike also shapes the current polymer pricing landscape.
Key Takeaways:
- Price Adjustments Across Polymers: Price reductions were observed in PP Raffia, PPCP, LLDPE, and HDPE PE100 Natural, with prices now stabilizing across other polymer categories.
- Demand Influences from China and India: Rising prices in China following the Golden Week holiday contrast with a cautious stance from Indian import buyers due to oversupply and lower domestic demand.
- Industry News Highlights: Key plant restarts in Taiwan and Iran and a price increase in BOPP by JPFL affect the polymer market outlook for Q4 2024.
Polymer Price Trends in November
- PP Raffia: (-0.50) ₹90.50/kg levels Ex Godown.
- PP Film: (±0) ₹100/kg levels Ex Godown.
- PPCP: (-1) ₹98/kg levels Ex Godown.
- PP Lamination: (-0.25) ₹100.75/kg levels Ex Godown.
- LLDPE: (-0.5) ₹86.5/kg Ex Mundra/Bhiwandi.
- LDPE: (±0) ₹116/kg Ex Mundra/Bhiwandi.
- HDPE PE100 Natural: (-1) ₹88/kg Ex Mundra/Bhiwandi.
- HDPE PE100 Black: (±0) ₹90/kg Ex Mundra/Bhiwandi.
- HDPE HM: (±0) ₹90/kg Ex Mundra/Bhiwandi.
- HD Blow Molding: (±0) ₹91/kg Ex Mundra/Bhiwandi.
- Low K (DG700): ₹80 Ex Nhava Sheva/Mundra.
- Low K (B57): ₹85.25 Ex Nhava Sheva/Mundra.
- LG LS100H: ₹79 Ex Mundra/Bhiwandi.
China’s Impact on Global PE Demand and Supply
- The supply and demand for Polyethylene (PE) in November 2024 are influenced by various factors. In China, the PE market has started strong after the Golden Week holidays, with initial offers indicating rollovers or slight increases from pre-holiday levels due to rising futures, higher crude prices, and government economic stimulus policies.
- The PE market in China remains firm, while import buyers in India are cautious. Persistent oversupply, weaker international demand, and a sluggish domestic economy have hindered price growth.
Polymer News: Key Industry Updates in the Market
- Nan Ya Plastics has restarted its 1,4-butanediol (BDO) plant, which was shut down in mid-August 2024. The plant is located in Mai Liao, Taiwan.
- Arian is restarting its Methanol Plant located in Asaluyeh, Iran.
- JPFL (Jindal Films Pvt Ltd) increased BOPP (TT & NTT) prices by ₹3000/MT, effective from November 11, 2024.
- Brent Crude Oil prices traded lower at USD 73.58 per barrel.
- Arya Sasol from Iran offered their LDPE Film at $1160, LD Lamination at $1290, and HM 5110 at $990 per MT CIF Nhava Sheva/Mundra for December shipment.
Expert Opinion: Navigating Export Pricing and Market Competition
- Some producers continued to lower export PE prices to remain competitive with offers from other regions, particularly China, as freight rates softened further. Spot prime prices in the domestic market held steady, however, as producers slowed down production.
Daily Market Report
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India PVC Markets Prepares for Price Hikes Amid Weak Buyer Activity
Low K (P700) prices are at Rs.83.75/kg and Low K (B57) at Rs.87.75/kg, both Ex Nhava Sheva/Mundra, while LG LS100H is priced at Rs.76.75/kg Ex Mundra/Bhiwandi. PVC prices saw an increase in October due to improved market sentiment in both Asia and the US, signaling a potential rise in demand.
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Steady Production and High Inventory Weigh on PVC Market Recovery
Low K (P700) Rs 83.75 Ex Nhava Sheva/Mundra. Low K (B57) Rs 87.75 Ex Nhava Sheva/Mundra. LG LS100H Rs 77 Ex Mundra/Bhiwandi. The PVC market is currently facing a supply-demand imbalance in the Asian subcontinent. In China, production rates have increased, with the overall operating rate of PVC production enterprises rising by 0.78% month-on-month and 1.99% year-on-year to 79.32%.
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