Polymer Market Steady-to-Soft; PP, PE Face Pressure While PVC Firms Up

Key Highlights

• PVC prices firmed up by ₹1–1.25/kg due to rising freight costs and BIS deadline-driven stocking.
   
• PP prices reduced by ₹2–4/kg, especially in fiber and thermoforming grades; demand weak across segments.
   
• PE prices softened, with LDPE and LLDPE down ₹2/kg; HDPE stable amid cautious demand.
   
• Global PP & PE sentiment weak, but tariff relief and Chinese shutdowns could support prices near term.

Polymer Price: PVC Prices Inch Up

• As of today, PVC prices in Mundra vary across grades and origins, with XINFA K67 (SG5) at ₹64,500/MT being the lowest, while FORMOSA K67 Compound (S65D) is the highest at ₹69,000/MT. 
• Both ASNYL (FJ65R) and HYGAIN (HS1000R) are priced similarly at ₹67,000/MT. In Ahmedabad, LLDPE prices range from ₹89,150/MT for 1 MFI NON SLIP (F0118L) to ₹99,310/MT for IM grade (M5026L). 
• HDPE prices in Ahmedabad show a narrower range, with BM (B0155D) at ₹86,450/MT and PE80 (P0148D) peaking at ₹88,000/MT. 
• Polypropylene (PP) prices are higher, with MARLEX PPHP Raffia (HGX030SP) and MRPL Raffia (HR003) both at ₹96,000/MT, while MRPL PPHP TQ Film (HF010) commands a premium at ₹1,00,000/MT. MRPL PPHP IM (HM012T) is slightly lower at ₹98,000/MT.

Polymer Demand and Supply: Weak Demand Weighs on Polypropylene

• Global demand for polypropylene remains subdued across most regions, pressured by falling prices and cautious buying behavior among end-users and traders alike. In China, raffia prices have softened noticeably, although copolymer prices remain relatively stable. 
• The PP operating rate in China has risen to 80%, reflecting moderate production activity despite the weak demand backdrop. Southeast Asia is witnessing a $20/ton price decline, driven by aggressive discounting as suppliers attempt to clear inventory. 
• In Turkey and Europe, raffia and fiber grade prices have seen declines, while BOPP prices show more resilience, supported by limited supply amid tight market conditions.
• Domestically in India, PP prices were reduced by INR 2–4/kg, with larger cuts observed in fiber and thermoforming grades. However, buying interest continues to be weak, as distributors focus on offloading existing stocks rather than replenishing. Demand remains stable only in Homo Raffia and Injection Molding segments, whereas BOPP and CPP demand is lackluster.
• The global polyethylene market sentiment is cautiously optimistic, buoyed by the recent US-China tariff relief which has eased some trade tensions. Despite this, prices softened in China amid expectations of tighter supply due to a planned production shutdown. 
• Southeast Asian markets, particularly Vietnam, report stable to slightly improving prices, reflecting balanced supply-demand conditions. Turkey and Europe continue to see price corrections, with LDPE dropping sharply by $70–80/ton and HDPE and LLDPE also experiencing downward pressure.
• In India, PE prices have softened, with LDPE and LLDPE down by INR 2/kg, while HDPE prices remain largely unchanged. Suppliers have rolled out early bird and post-sale quantity discounts to stimulate demand, but buyers remain cautious and are managing inventories tightly in anticipation of further market shifts.
• PVC markets are showing pockets of strength, particularly in China where prices rose by about 3%, driven by bulk buying and constrained freight capacity. The demand is selective and shipment-focused, especially for June delivery. 
• In India, PVC prices increased marginally by INR 1–1.25/kg amid rising freight costs and a decline in Chinese cargo availability. Domestic demand is slightly improving, supported by traders stocking ahead of the upcoming BIS certification deadline on 24 June 2025. However, uncertainty prevails regarding the clarity and enforcement of anti-dumping duties, keeping market participants cautious.

Market News: Anti-Dumping Uncertainty Keeps Indian PVC Market on Edge

1. US-China Tariff Relief: The easing of tariffs between the US and China has injected a cautiously optimistic tone into the polyethylene market globally. This development is expected to facilitate smoother trade flows and potentially stabilize pricing dynamics in the medium term.
2. Chinese Plant Shutdowns: Planned production shutdowns in China for polyethylene are anticipated to tighten supply, which may underpin price support once these outages begin.
3. BIS Certification Deadline (India): The Bureau of Indian Standards (BIS) certification deadline set for 24 June 2025 is prompting traders to build inventory in PVC and related products to avoid future compliance issues, impacting buying patterns and prices domestically.
4. Freight Capacity Constraints: Tight freight capacity, especially impacting PVC cargo movement from China, is contributing to price increases and supply chain bottlenecks
5. Anti-Dumping Duty Uncertainty: Lack of clarity on anti-dumping duty policies remains a key risk factor for the Indian PVC market, with stakeholders waiting for definitive guidelines to assess the longer-term impact on imports and pricing.

Market Expectations: Domestic Polyolefin Demand Expected to be Subdued

• The polyolefin market is expected to remain subdued in the near term due to cautious buyer sentiment and ongoing price corrections, particularly for PP and PE. However, supply-side factors such as Chinese shutdowns and tariff relief may provide some price stabilization. 
• PVC markets could see moderate strength fueled by regulatory deadlines and freight-related supply tightness, though anti-dumping duty uncertainties pose downside risks. Overall, buyers are likely to continue cautious inventory management while suppliers focus on selective discounting and clearing stocks.