Polymer Market Overview: Stable Prices Amid Tight Supply and Resurgent Export Demand

Key Takeaways

Supply & Demand Dynamics

• Limited inventories across PE and PP resin categories due to rising feedstock costs and reduced production.
• Urgent demand for truckload resins to address late railcar shipments.

News Highlights

• Zhongkun increased MEG plant operations in Xinjiang, China.
• Lotte Chemical reduced operating rates at its PP plant in South Korea.

Expert Insights:

• Feedstock cost pressures and tight inventories are expected to maintain a firm price floor.

Polymer Price Snapshot: Steady Across Key Categories

• PP Raffia (±0) Rs90.25 /kg levels Ex Godown
• PP film (±0) Rs.99.50 kg levels Ex Godown
• PPCP (±0) Rs 97.75 /kg levels Ex Godown
• PP Lamination (±0) 97 /kg levels Ex Godown
• Low K (DG700) Rs 79.75 Ex Nhava Sheva/Mundra
• Low K (B57) Rs 83.25 Ex Nhava Sheva/Mundra
• LG LS100H Rs 77 Ex Mundra/Bhiwandi
• LLDPE(±0) Rs.86.5/kg Ex Mundra/Bhiwandi
• LDPE prices are around(±0) Rs.116kg Ex Mundra/Bhiwandi
• HDPE PE100 natural (±0) Rs.88/kg Ex Mundra/Bhiwandi
• HDPE PE100 black (±0) Rs.89/kg Ex Mundra/Bhiwandi
• HDPE HM (±0) Rs.89/kg Ex Mundra/Bhiwandi
• HD Blow Molding(±0) Rs.91/kg Ex Mundra/Bhiwandi

Polymer Supply Constraints Driven by Feedstock Cost Surge

• Polyethylene (PE) and polypropylene (PP) resin prices continued to climb the week.Inventories for these commodity resin groups are tight and the squeeze could tighten even more as feedstock costs spiral higher, which could limit fresh production.

• Many processors are still working through substantial purchases made during the past couple of months. Steady flow of orders from customers procuring their normal supplies. There were urgent truckload needs from resellers, as their customers required quick resin because of late railcar shipments, and export demand also picked up a little, albeit challenged by competitive Asian and Saudi offers, said the resin clearinghouse.

News Updates: Plant Operations and Feedstock Movements

• Zhongkun has increased operating rates at its MEG Plant. The Plant is located in Xinjiang, China.
• Excel Paralubes is planning to restart its Base Oil (Group II, III) Plant by end of week, which was shut in end-November, 2024. The Plant is located in Westlake, Louisiana, USA .
• Lotte Chemical has reduced operating rates at its Polypropylene (PP) Plant. The Plant is located in Yeosu, Daesan, South Korea.
• Brent Crude Oil Prices traded higher at USD/bbl 73.65.
• Naphtha Prices assessed higher at US$ 645/- per MT CFR Japan basis.
• Styrene Monomer Prices assessed lower at US$ 1035/- per MT FOB Korea basis.

Cautious Optimism Amid Inventory Squeeze

The polymer market has experienced moderate demand but has been hindered by a lack of new orders,reflecting low purchasing sentiment and minimal buying activities.