Polymer Market Weakens Amid Global Demand Slump and Price Cuts – April End 2025 Update

Key Highlights

• Price Trends: Polymer prices hold steady in India; expected to fall ₹2–5/kg in early May.
• Weak Demand: Downstream offtake remains sluggish across Asia; GPPS & HIPS down ₹1,000/MT.
• Incentive Push: IOCL rolls out offtake-based PP incentive scheme to boost sales.
• Supply News: Planned shutdowns at LG Chem, TotalEnergies, Petronas; restarts at Sinopec.

Domestic Polymer Prices Hold Steady Amid Global Weakness

• In Ahmedabad, HMEL HDPE Films (F0146D - Prime) is priced at ₹91,640 per metric ton, while HMEL HDPE PE100 Natural (P0049D - Prime) stands at ₹90,020/MT. 
• The HMEL LLDPE 1 MFI Slip (F0120L - Prime) is available at ₹94,370/MT, and HMEL LLDPE Roto Moulding (R0536L - Prime) is priced at ₹1,03,090/MT. 
• Additionally, HMEL MDPE BM (B0148D) is offered at ₹96,760/MT in the same region. In Rajkot, MRPL PPHP Lamination (HY035R) is quoted at ₹1,04,500/MT. 
• Moving to Bhiwandi, LDPE 4 MFI SLIP GP (Prime) is currently priced at ₹1,13,000/MT. Meanwhile, in Delhi, HALDIA PPCP Random (M312 - Prime) is being offered at ₹1,06,250/MT.

Supply-Demand: IOCL Offers Incentives to Boost PP Sales Amid Weak Demand

• The domestic and international polymer markets saw subdued demand and downward price pressure in the final week of April 2025. Supreme Petrochemicals revised GPPS and HIPS prices downward by ₹1,000/MT, signaling weak buying interest and ample supply.
• IOCL launched a special incentive scheme for PP and Flexi APP customers based on April 2025 offtake, categorized into multiple slabs. While values for the incentive components (X, Y & Z) are pending announcement, the scheme reflects a push by producers to boost offtake amidst sluggish market sentiment.

PP Market Overview:

International offers for PP continued to soften due to poor global demand. PP Raffia offers from China were quoted at $925/MT (CFR India). The domestic PP market is expected to face a price drop of ₹2–3/kg this week.

PE Market Overview:

Similar trends were observed in the PE market, with international offers for May shipments dropping by $50–75 for Vietnam and $30–40 for India. Demand weakness from China, Southeast Asia, and India is pressuring sellers. One-to-one deals have become common as domestic producers struggle to close bulk orders. Prices are expected to drop by another ₹4–5/kg within the next 2–3 weeks.

Feedstock Trends:

Feedstock prices remained mostly unchanged except for Styrene Monomer, which saw a $10/MT decrease.

China Futures Update:

September PP futures on Dalian Commodity Exchange closed higher by 9 RMB, reaching 7111 RMB, indicating slight optimism.

Market Updates: Global Supply Chain Shifts with Multiple Plant Shutdowns

• Qinghai Yihua and LG Chem to shut PVC units for short maintenance.
• LG Chem also scheduled maintenance for its VCM units in Korea.
• Pucheng Energy to restart its 400,000 TPA PP unit in China by April 30.
• HDPE and LLDPE plants by TotalEnergies (France) and Petronas (Malaysia) are shut for maintenance.
• Sinopec and its joint ventures restarted multiple aromatic and intermediate units, including phenol, acetone, MEG, benzene, and xylene.
• Sinopec reduced Phenol offers in East China by CNY 200/MT.
• Shanghai SECCO cut ACN prices by CNY 400/MT, now assessed at CNY 8,500/MT (ex-tank).

May Outlook– Further Price Corrections Expected in PP & PE

The overall sentiment remains bearish due to oversupply, sluggish regional demand, and cautious buying. Further price corrections are likely across PP and PE markets. Producers may continue offering incentives and customized deals to secure offtake. Any shift in oil or feedstock prices, or macroeconomic cues from China and India, will be closely watched in the coming weeks.