Polymer Market Steady Amid Supply Constraints and ADD Concerns

Key Highlights:

1. Domestic polymer prices varied significantly.
2. PP and PE demand remains steady despite international price rises.
3. LDPE supply is constrained, while HDPE demand is weak.
4. PVC market subdued due to anti-dumping duty speculation.

Polymer Price Fluctuations

• Domestic polymer prices in India showed variation across different grades and locations. ABS was priced at 147,000 INR/MT in Ahmedabad.
• PPCP Random was quoted at 103,000 INR/MT in Delhi. 
• PPHP Raffia stood at 97,000 INR/MT in Bhiwandi. 
• In the HDPE segment, BM grade was priced at 92,240 INR/MT in Ahmedabad, whereas PE100 Natural was available at 91,620 INR/MT in the same region. 
• LLDPE prices in Delhi differed based on MFI and slip properties, with 1 MFI Slip priced at 94,440 INR/MT and 2 MFI Non-Slip at 94,770 INR/MT. 
• Meanwhile, PVC Suspension prices ranged between 72-75 INR/kg in key cities like Jaipur, Mumbai, Chennai, and Kolkata.

Polymer Demand and Supply Overview

• The demand for polypropylene (PP) and polyethylene (PE) remains steady, with international suppliers raising prices across key segments. LDPE offers have risen by $30–50/MT, LLDPE by $20–40/MT, HDPE by $10–20/MT, and PP by $50–70/MT.
• Supply from the Middle East is restricted, whereas Chinese suppliers are offering competitive rates to drive sales into India. 
• LDPE supply remains tight, with key producers like Basell, Muntajat, Dow, and Tasnee facing constraints, prompting processors to secure stock before further price hikes. 
• Meanwhile, HDPE demand weakness has led to reduced international allocations.
• In the PVC market, sentiment remains subdued, with anti-dumping duty (ADD) speculation impacting interest in Chinese imports. 
• Suppliers from Taiwan, Korea, Japan, and Thailand are struggling to match Indian market expectations, leading to further market uncertainties.

Polymer News: Global Market Updates

• India’s purified terephthalic acid (PTA) imports saw an increase in November, while exports from Taiwan and South Korea declined on a year-on-year basis.
• In the U.S., polyvinyl chloride (PVC) exports are navigating new tariff regulations and evolving trade dynamics. Prices reached a peak of $860 per metric ton in June 2024 before declining to $670 per metric ton in November.
• SK Advanced has postponed the restart of its propane dehydrogenation (PDH) unit in Ulsan, South Korea. The unit, which has a propylene production capacity of 600,000 tons per year, remains offline beyond its initial restart timeline.
• Petrochemical Industries Company (PIC) has taken its polypropylene (PP) plant in Shuaiba, Kuwait, offline for maintenance, with operations expected to resume in the second half of February 2025. The plant has a production capacity of 150,000 tons per year.
• Pengerang Refining and Petrochemical (PRefChem) successfully restarted its No.2 polypropylene (PP) unit in mid-January 2025 following a scheduled turnaround. The unit, located in Pengerang, Malaysia, had been offline since late September 2024 and has a production capacity of 450,000 metric tons per year.
• SK Advanced has extended the maintenance shutdown of its PDH unit in Ulsan, South Korea, to the end of February 2025. The unit, initially taken offline on December 17, 2024, was originally scheduled to resume operations in mid-February. It has a propylene production capacity of 600,000 metric tons per year.
• Yeochun NCC (YNCC) is set to commence maintenance at its No.2 cracker in Yeosu, South Korea, in mid-February 2025. The unit, which has a propylene production capacity of 590,000 metric tons per year, is expected to remain offline until the end of March 2025.

Expert Opinion on Polymer Market Trends

Polymer prices are expected to stay stable to firm due to supply constraints and global price adjustments. LDPE may remain high amid tight supply, while PP availability from the Middle East remains limited, driving buyers to explore alternatives. PVC sentiment remains weak due to ADD concerns impacting import preferences.