PVC Softens Post-ADD Removal While PE/PP Maintain Stability

Key Highlights

• RIL announced PVC price protection; PP & PE domestic prices remain unchanged.
• International PVC prices dropped sharply: South Asia ↓ $45, SEA ↓ $25.
• Imports expected to reduce significantly in December due to year-end slowdown.
• Market sentiment indicates polymers are near bottom levels, improving stocking appetite.

PVC Faces Fresh Downside as International Prices Drop and ADD Removed

• RIL
  1. RIL announced price protection on PVC from 20–30 Nov 2025.
  2. No change in PP and PE domestic prices w.e.f. 20 Nov 2025.
   
• International Offers – South Asia (US$/MT)
  PP Film: 835 (NC)
  PP Injection: 815 (NC)
  PP Raffia: 815 (NC)
  PP CP: 845 (NC)
  HM: 860 (NC)
  HDPE Injection: 855 (NC)
  HDPE Blow: 855 (NC)
  LLDPE: 860 (NC)
   
• International Offers – South East Asia (US$/MT)
  PP Film: 840 (NC)
  PP Raffia: 810 (NC)
  PP Injection: 810 (NC)
  PP CP: 850 (NC)
  BOPP: 820 (NC)
   
• PVC International Prices
  South Asia: $670/MT, ↓ $45
  South East Asia: $625/MT, ↓ $25
   
• LDPE (Middle East)
  One major Middle Eastern producer dropped LDPE film below $1,000/MT — first time in 2025.

PP & PE Demand Weak, But Inventory Pressure on Domestic Producers Remains Low

• Domestic PP and PE demand remains weak, and sentiment is down.
• Domestic producers not facing inventory pressure.
• Imports expected to reduce sharply for December due to year-end slowdown.
• Market participants observe that prices have mostly bottomed, suggesting a good stocking level.
• Middle East LDPE price cut could pressure other producers to follow.

Market News: Imports Set to Decline in December, Supporting Near-Bottom Market Levels

• RIL – X & Y Scheme (HD/LL) for Nov’25:
  1. X = 9% of Annualised APR FY26
  2. Y = 12% of Annualised APR FY26
   
• China Market Influence:
  1. Major Middle Eastern reduction in LDPE film disrupted Chinese PE sentiment.
  2. December pricing from producers yet to be announced.
   
• Indian Domestic Market: Suppliers holding prices steady despite bearish sentiment due to global plant shutdowns and controlled inventory.
   
• DGTR / PVC ADD Update:
  1. India decides NOT to impose anti-dumping duties on PVC from seven nations.
  2. Market expects short-term downside in PVC as international suppliers prepare December offers.

Market Expectation: Middle East LDPE Price Cuts May Trigger Wider Downward Revisions

• PVC prices may face downward pressure in the short term following removal of ADD risk and global offer reductions.
   
• PE/PP markets are expected to remain stable, with producers not showing inventory stress and imports slowing toward year-end.
   
• If Middle Eastern LDPE pricing trend continues, other producers may be forced to revise prices downward to remain competitive.

Overall sentiment suggests that current polymer prices are near the bottom, supporting stocking interest.