Polymer Market Under Pressure Amid Weak Global Demand and Domestic Inventory Caution

Key Highlights

• PVC Price: XINFA K67 at ₹64,000/MT (Bhiwandi), demand remains muted.
• PE Pressure: HDPE, LDPE, and LLDPE facing weak demand and global oversupply.
• PP Outlook: Marginal softness likely, except for auto and appliance-grade segments.
• Policy Watch: Anti-dumping duty (ADD) developments and BIS enforcement delays weigh on PVC sentiment.

Polymer Prices Stay Under Pressure Amid Weak Demand

• In Bhiwandi, XINFA PVC K67 (SG5) is available as ready material at ₹64,000 per metric ton. Delhi markets are quoting HDPE PE100 Natural (Prime) at ₹92,520/MT.
• LDPE 4 MFI Slip GP (Prime) at ₹1,16,000/MT, Natural TAITA ABS (5000W) at ₹1,39,250/MT, and HALDIA PPCP Random (M312 - Prime) at ₹1,06,250/MT. 
• In Rajkot, MRPL PPHP Lamination (HY035R) is priced at ₹1,04,500/MT, and LLDPE 1 MFI Slip (Prime) is being offered at ₹94,370/MT. 
• Wankai PET (WK-801) is available in Ahmedabad at ₹78,500/MT, while in Howrah, HMEL MDPE BM (B0148D) is being sold at ₹96,500/MT.

Indian Buyers Remain Cautious Despite Domestic Incentives

• Globally, PE prices are facing downward pressure. Far East and Southeast Asian markets have seen a $20–30/MT drop in prices, largely due to weak regional demand and an influx of competitively priced U.S. cargoes. The situation in Southeast Asia is especially subdued as China-bound U.S. volumes are being redirected, leading to oversupply concerns.
• In India, domestic buyers are displaying caution, reacting to global price corrections. Even though local producers have introduced incentives to stimulate buying, demand across most PE segments remains tepid. LDPE heavy-duty applications show some stability, but demand in lamination and film segments is considerably weak. LLDPE remains particularly soft despite ongoing shutdowns, as the market is oversupplied.
• Internationally, PP prices have seen a $30–50/MT decline, particularly in China, where suppliers are actively discounting to ease inventory pressure. In Turkey, although prices have held steady, demand remains subdued and is largely need-based. The focus in such markets is limited to core grades like Raffia, Fiber, and ICP.
• On the domestic front, Indian producers are adopting aggressive sales tactics through incentives. However, demand remains limited to essential purchases. ICP and RCP grades continue to underperform. Notably, auto and appliance-related demand is comparatively steady. Additionally, manufacturers are increasingly shifting from MOU-based sales to spot transactions, signaling a cautious market sentiment.
• PVC demand is under intense pressure globally. In China and Southeast Asia, suppliers are adopting highly aggressive pricing to clear stocks amidst weak export orders. The Turkish and European markets are similarly strained due to persistent oversupply.
• Domestically, India's PVC market is dealing with sluggish offtake in key sectors like agriculture and infrastructure. The anticipation of delays in BIS enforcement and high inventory levels have discouraged fresh purchases. Indian producers are advocating for anti-dumping duties as a protective measure to avoid potential plant shutdowns.

PVC Imports Face ADD Scrutiny as Domestic Producers Push for Relief

• Vestolit has lifted its force majeure on PVC and VCM supplies from its Marl, Germany plants, effective late last week. The facilities have annual production capacities of 450,000 tons of PVC and 400,000 tons of VCM.
• In a legal development, the Gujarat High Court ruled today to allow the continuation of an anti-dumping (ADD) investigation, excluding grades imported by EPIGRAL. While final ADD findings can now proceed for other grades, Indian processors may appeal to the Supreme Court regarding EPIGRAL’s inclusion.
• Meanwhile, Wanhua Chemical commenced operations at its new butadiene (BD) plant in Yantai, China, on April 21, 2025, adding 160,000 tons/year of capacity.

Price Updates (Effective April 25, 2025):

• JPFL (Jindal Films): Reduced BOPP (TT/NTT) prices by ₹5,000/MT.
• RIL & Chiripal: Both increased PET prices by ₹1,500/MT.

Market Expectations: Short-Term Inventory Caution Recommended Amid Market Uncertainty

The polymer market sentiment remains bearish across PE, PP, and PVC.

• PE and LLDPE are likely to witness further price corrections.
• PP may see mild to moderate declines, with stability possible in auto-linked grades.
• PVC could soften further unless policy support like anti-dumping duties or BIS enforcement offers relief.

Recommendation: Avoid building large inventories beyond May 5th levels due to ongoing uncertainty and weak demand signals.