Polymer Prices Face Downward Pressure Amid Slowing Demand and Rising Inventories

Key Takeaways:

• Polymer prices, including various types of polyethylene and polypropylene, have seen declines due to slowing demand in industries like construction and packaging.

• Lower feedstock costs, driven by falling crude oil and natural gas prices, have contributed to these declines.

• Supply-side updates include production delays at several major facilities in Asia, impacting global polymer availability.

  Polymer Price Updates Across Key Segments

• Low K (DG700) Rs 80 Ex Nhava Sheva/Mundra

• Low K (B57) Rs 85.25 Ex Nhava Sheva/Mundra

• LG LS100H Rs 78 Ex Mundra/Bhiwandi

• LLDPE (-0.5) Rs. 86.5/kg Ex Mundra/Bhiwandi

• LDPE prices are around (±0) Rs. 116/kg Ex Mundra/Bhiwandi

• HDPE PE100 natural (-1) Rs. 88/kg Ex Mundra/Bhiwandi

• HDPE PE100 black (±0) Rs. 90/kg Ex Mundra/Bhiwandi

• HDPE HM (±0) Rs. 90/kg Ex Mundra/Bhiwandi

• HD Blow Molding (±0) Rs. 91/kg Ex Mundra/Bhiwandi

• PP Raffia (-0.50) Rs. 90.50/kg levels Ex Godown

• PP Film (±0) Rs. 100/kg levels Ex Godown

• PPCP (-1) Rs. 98/kg levels Ex Godown

• PP Lamination (-0.25) Rs. 100.75/kg levels Ex Godown

Global Economic Impacts on Polymer Demand

• The global economic slowdown, especially in key markets like construction, automotive, and packaging, has reduced the demand for polymers such as polyethylene (PE), polypropylene (PP), and polyvinyl chloride (PVC).
• As industries that heavily consume these materials slow down, inventories build up, and prices are forced downward. Seasonal slowdowns can also exacerbate this issue.
• Falling prices for feedstocks like crude oil and natural gas, from which many polymers are derived, have also contributed to the price decline. For example, ethylene and propylene, which are the building blocks for many polymers, have seen price drops due to lower energy costs and oversupply in some regions. This reduction in input costs allows polymer producers to lower their selling prices while still maintaining margins.

Polymer News: Supply Chain Developments and Production Delays in Asia

• Idemitsu Kosan has delayed the restart of its No. 2 Styrene Monomer (SM) Line, located in Tokuyama, Japan.
• SP Chemicals (Taixing) Co Ltd, a subsidiary of Singapore-based SP Chemicals Pte Ltd, intends to start operations at its newly constructed Ethylene-based PVC Plant by the end of 2024. The plant is located in Jiangsu, China.
• PetroChina Dushanzi Petrochemical is planning to start up its new Ethylene Plant (C2) on 30th September, 2026. The plant will be located in Tarim, Xinjiang, China.
• Chongqing Jianfeng Industrial Group has delayed the restart of its 1,4-butanediol (BDO) Plant, located in Chongqing, China.
• Xinjiang Tianye has increased operating rates at its No. 3 Monoethylene Glycol (MEG) Unit, located in Shihezi, Xinjiang, China.
• A major explosion occurred at Indian Oil Corporation (IOCL)'s Mathura Refinery, injuring 12 people, with 3 in critical condition. The incident occurred while restarting the Atmospheric Vacuum Unit (AVU), leading to a sudden fire. The refinery is located in Mathura, Uttar Pradesh, India.

Expert Opinion on Market Price Pressures and Future Trends

The overall polymer market is seeing increased pricing pressure, and these trends may continue until demand conditions improve or the market rebalances through production adjustments.