PP Market Faces Pricing Pressure Amid Weak Demand and Oversupply
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The polymer market remains under pricing pressure due to oversupply and weak global demand. Prices for various polymer types are stable, with some regional disruptions in production influencing the supply chain. Competitive imports and reduced domestic demand continue to affect market margins.
Key Highlights
- Stable Pricing: LLDPE, LDPE, HDPE, and related products showed no price change this week.
- Demand and Supply Trends: Weak PP demand in the US, especially in the automotive sector. Oversupply in Asian markets, notably in China, affects global pricing.
- Production Updates: Petronas Chemicals: Delayed restart of the Kerteh cracker in Malaysia. Vynova: Temporary shutdown of the PVC plant in Wilhelmshaven, Germany, in late November.
Polymer Price Overview: Stabilizing Market Dynamics
- Low K (DG700): Rs. 78.75 Ex Nhava Sheva/Mundra
- Low K (B57): Rs. 83.50 Ex Nhava Sheva/Mundra
- LG LS100H: Rs. 76.50 Ex Mundra/Bhiwandi
- LLDPE: Rs. 86.5/kg (±0) Ex Mundra/Bhiwandi
- LDPE: Rs. 116/kg (±0) Ex Mundra/Bhiwandi
- HDPE PE100 Natural: Rs. 88/kg (±0) Ex Mundra/Bhiwandi
- HDPE PE100 Black: Rs. 90/kg (±0) Ex Mundra/Bhiwandi
- HDPE HM: Rs. 90/kg (±0) Ex Mundra/Bhiwandi
- HD Blow Molding: Rs. 91/kg (±0) Ex Mundra/Bhiwandi
- PP Raffia: Rs. 90/kg Ex Godown
- PP Film: Rs. 99.50/kg (±0) Ex Godown
- PPCP: Rs. 98/kg Ex Godown
- PP Lamination: Rs. 100/kg Ex Godown
Polymer Demand and Supply: Regional Oversupply Pressures Margins Globally
- The polypropylene (PP) market is influenced by various factors affecting supply and demand into late 2024. Weak demand in the US PP industry, particularly from the auto sector, is contributing to reduced activity along the supply chain.
- Asian markets, especially China, remain oversupplied, weakening global PP margins. Competitive pricing from Asia and the Middle East has attracted North American processors to secure imports for early 2024.
Polymer News: Updates from Key Facilities
- *Petronas Chemicals Ethylene: Restart of its Kerteh, Malaysia, cracker delayed after maintenance work that began on September 25, 2024.
- De Paul Road Chem: MTBE plant in Shandong, China, restarted post-maintenance.
- Vynova: PVC plant in Wilhelmshaven, Germany, to shut for maintenance for two weeks starting late November 2024.
Expert Opinion: Demand Recovery Crucial for Market Stability
It is expected that the PP market will continue to experience increased pricing pressure. These conditions are likely to persist until demand improves or supply adjusts through production cuts.
Daily Market Report
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India PVC Markets Prepares for Price Hikes Amid Weak Buyer Activity
Low K (P700) prices are at Rs.83.75/kg and Low K (B57) at Rs.87.75/kg, both Ex Nhava Sheva/Mundra, while LG LS100H is priced at Rs.76.75/kg Ex Mundra/Bhiwandi. PVC prices saw an increase in October due to improved market sentiment in both Asia and the US, signaling a potential rise in demand.
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Asian Polyethylene Markets Face Supply Disruptions Amid Rising Freight Costs
LLDPE (±0) Rs 87.5/kg Ex Mundra/Bhiwandi, LDPE prices are around (±0) Rs 116/kg Ex Mundra/Bhiwandi, HDPE PE100 natural (±0) Rs 90/kg Ex Mundra/Bhiwandi, HDPE PE100 black (±0) Rs 91/kg Ex Mundra/Bhiwandi, HDPE HM (±0) Rs 90/kg Ex Mundra/Bhiwandi, HD Blow Molding (±0) Rs 91/kg Ex Mundra/Bhiwandi. Low-density polyethylene (LDPE) prices rose in Southeast Asia and South Asia while remaining flat in China.
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