Recycled Polymer Demand Rises Amid 2025 Targets
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FPolymer_6_d2c14e4ff6.png&w=1920&q=100)
Polymer prices in India show slight declines across most grades, with supply-demand imbalances persisting. Recycling mandates for 2025 drive early demand for recycled polyethylene, but significant challenges remain in collection and processing. Global polymer markets face feedstock shortages, impacting price stability. Industry news highlights maintenance shutdowns and incentive schemes.
Key Highlights
- Price Trends: PP and HDPE grades witness slight price reductions; LDPE remains stable.
- Recycling Mandates: Government targets for 2025 push early adoption of recycled materials but pose challenges.
- Global Dynamics: Feedstock shortages likely to impact recycled polymer markets early next year.
- Industry Updates: Shutdowns in chemical units and new incentive schemes impact production and pricing.
Polymer Price Trends: Marginal Declines Across Key Grades
- PP Raffia (-1) Rs. 89/kg levels Ex Godown
- PP Film (-1) Rs. 98.50/kg levels Ex Godown
- PPCP (-2) Rs. 95.75/kg levels Ex Godown
- PP Lamination (-1) Rs. 96/kg levels Ex Godown
- PVC Low K (DG700) Rs. 79 Ex Nhava Sheva/Mundra
- PVC Low K (B57) Rs. 83 Ex Nhava Sheva/Mundra
- PVC LG LS100H Rs. 76.50 Ex Mundra/Bhiwandi
- LLDPE (-0.5) Rs. 86/kg Ex Mundra/Bhiwandi
- LDPE prices are around (±0) Rs. 116/kg Ex Mundra/Bhiwandi
- HDPE PE100 Natural (-1) Rs. 86/kg Ex Mundra/Bhiwandi
- HDPE PE100 Black (-1) Rs. 88/kg Ex Mundra/Bhiwandi
- HDPE HM (-1) Rs. 88/kg Ex Mundra/Bhiwandi
- HDPE BM (±0) Rs. 91/kg Ex Mundra/Bhiwandi
Recycling Mandates: Driving Early Demand but Challenges Persist
- In India, market participants anticipate improved demand as domestic recycled polyethylene buyers are expected to incorporate a share of recycled material into their end-products ahead of the government guidelines set for 2025.
- The Ministry of Environment, Forest, and Climate Change has established ambitious recycling rate targets of 30%-50% for various plastic packaging by 2025, alongside requirements for recycled plastic content ranging from 5% to 30%.
- However, industry sources in India view these targets as challenging, citing the need for significant capacity expansions and a corresponding increase in collection rates. Some domestic buyers have already begun integrating a percentage of recycled polyethylene to ensure future supply security.
- Globally, the recycled polymer market is expected to slow down early next year, as manufacturers rush to secure post-consumer resin to meet mandatory or voluntary commitments, while recyclers face difficulties in procuring sufficient feedstock to meet rising demand.
- Market sources have also highlighted voluntary commitments from some brand owners aiming to include post-consumer recycled polyethylene and polypropylene in their plastic packaging by 2025, which could further drive demand upward.
Industry News: Maintenance Shutdowns and New Incentive Schemes
- Sadara Chemical halts production at the glycol ethers unit. The company has started maintenance at the unit on December 6, 2024. Further details on the duration of the shutdown could not be ascertained.
- Isomer MX prices were quoted higher in Taiwan while remaining stable in Korea on Wednesday
- ONGC Petro additions Limited (OPaL) announces a linked Incentive Scheme in Polypropylene (PP) and Polyethylene (PE) for December 2024 in the domestic markets of India.
- Chengdu Yulong starts a turnaround at the melamine plant. The plant was shut in early December 2024 for a maintenance turnaround. Further details on the duration of the shutdown could not be ascertained.
- Jiangsu Dynamic Chemical takes the BG unit offstream.The company has halted operations at the unit on December 6, 2024, for maintenance. Further details on the duration of the shutdown could not be ascertained.
Expert Opinion: Limited Price Growth Amid Persistent Supply-Demand Imbalance
The significant supply-demand mismatch is unlikely to improve soon, suggesting limited potential for further price increases. Monitoring cost-side trends will be crucial for future market development.
Daily Market Report
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FPolymer_425b662378.png&w=3840&q=75)
Imported PVC Market Weakens Amid Persistent Decline
PVC prices declined across most grades due to high operating rates, ample supply, and weak downstream demand. Declining crude oil and calcium carbide prices reduced cost support for production. Analysts anticipate continued bearish trends in the PVC market, with excess inventory and sluggish trading activity dominating the near-term outlook.
Read Story
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FPolymer_1_78b0af3fdb.png&w=3840&q=75)
PVC and Calcium Carbide Prices Decline Amid Weak Market Fundamentals
Polymer prices remain largely stable, with minor fluctuations in PVC and HDPE. Weak upstream support, declining PVC demand, and high operating rates have led to a surplus supply. The PVC spot market remains bearish due to sluggish inquiries and market confidence.
Read Story
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FCPVC_024ab9034c.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FLLDPE_Films_Ready_Material_882bbff6cf.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FPPHP_Films_Ready_Material_10d55911b7.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FHDPEPE_100_Ready_Material_e3a92491ae.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FPVCK_67_Compounded_Ready_Material_1e8a2459cc.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd3dhalnpawfxbg.cloudfront.net%252Fproduction%252Fnexizo%252Fnexizo.ai%252F_next%252Fassets%252Fbg-png-msite.png&w=3840&q=30)
%2Fhttps%253A%252F%252Fd3dhalnpawfxbg.cloudfront.net%252Fproduction%252Fnexizo%252Fnexizo.ai%252F_next%252Fassets%252Fved.png&w=128&q=75)