PVC Market Faces Challenges Amid Fluctuating Demand

Key Highlights

1. Polymer Price Trends:
   • LLDPE increased slightly to Rs. 86.5/kg (+0.5), while HDPE PE100 natural dropped to Rs. 84/kg (-2).
   • LDPE, PP, and other HDPE grades remained stable across markets.
2. PVC Market Challenges:
   • Growth is hindered by raw material price fluctuations, geopolitical tensions, and environmental concerns.
   • Addressing these requires collaboration and robust regulatory frameworks.
3. Industry News:
   • Sinopec resumes production at its No.1 HDPE unit in Beijing.
   • Samsung E&A secures a $955 million biorefinery contract in Malaysia.
4. Expert Insights:
   • Resilience through investment discipline and sustainability will drive future growth in the chemicals sector.
   • Businesses must focus on innovation and balanced market approaches to overcome near-term volatility.

Polymer Price Update: Mixed Trends Across Grades

• LLDPE (+0.5): Rs. 86.5/kg Ex Mundra/Bhiwandi
• LDPE (±0): Rs. 116/kg Ex Mundra/Bhiwandi  
• HDPE PE100 natural (-2): Rs. 84/kg Ex Mundra/Bhiwandi  
• HDPE PE100 black (±0): Rs. 88/kg Ex Mundra/Bhiwandi  
• HDPE HM (±0): Rs. 88/kg Ex Mundra/Bhiwandi  
• HD Blow Molding (±0): Rs. 91/kg Ex Mundra/Bhiwandi   
• PP Raffia (±0): Rs. 89/kg Ex Godown  
• PP Film (±0): Rs. 98.50/kg Ex Godown  
• PPCP (±0): Rs. 95.75/kg Ex Godown  
• PP Lamination (±0): Rs. 96/kg Ex Godown  
• Low K (DG700): Rs. 79 Ex Nhava Sheva/Mundra  
• Low K (B57): Rs. 82.75 Ex Nhava Sheva/Mundra  
• LG LS100H: Rs. 76.75 Ex Mundra/Bhiwandi  

Supply and Demand: PVC Industry Faces Growth Challenges in 2024

• The Polyvinyl Chloride (PVC) market is expected to experience fluctuating growth patterns in the near term, influenced by persistent factors contributing to sluggish growth throughout 2024.  
• The PVC industry faces several key challenges in the short- and medium-term forecast, including:  
• Shifting consumer preferences  
• The need for industrial policy amendments to address growing environmental concerns  
• Significant fluctuations in raw material costs due to geopolitical tensions  
• Expected subdued economic growth  
• To overcome these challenges, effective collaboration within the chemical industry and across the value chain is crucial. Establishing a robust regulatory framework and achieving consensus on initiatives supporting a balanced approach considering supply, demand, and financial factors will be essential.

Key Developments in the Polymer Industry

• Bharat Petroleum Corporation Limited (BPCL) rolls over Toluene prices in the domestic market of India.  
• Naphtha prices show a mixed undertone on Friday.  
• SAMSUNG E&A wins a USD 955 million contract for a biorefinery in Malaysia.  Sinopec Beijing Yanshan resumes production at the No.1 HDPE unit.  

Expert Opinion on Polymer Market Trends

• Despite the anticipated challenges in 2024, the Polyvinyl Chloride (PVC) industry has opportunities to thrive by focusing on resilience and innovation. This includes:  Maintaining investment discipline  
  Actively engaging in business ecosystems  
  Demonstrating a strong commitment to sustainability  
• The chemicals industry must continue to play a pivotal role in driving sustainable solutions while navigating the complexities of the market.