Sluggish Polymer Demand Persists as China's Chemical Market Shapes Global Trends

Key Highlights:

1. Price Stability: Minimal fluctuations in polymer prices, with HDPE PE100 natural declining by ₹2/kg, while LLDPE saw a slight increase of ₹0.5/kg.
2. Demand Slump: Low demand for virgin LDPE films and a downtrend in LDPE/LLDPE electrical pipe grades; import quantities decreased.
3. Regional Insights: Propylene prices rose in Asia due to stronger energy values, while ethylene prices in the US remained unchanged.
4. Economic Impact: China's economic slowdown, capacity expansion, and self-sufficiency in chemicals contribute to a sluggish market and increased exports.

Stable Price Trends with Minimal Adjustments Across Grades 

• Pp Raffia ((±0) Rs88/kg levels Ex Godown.
• Pp film (±0) Rs.98.50 kg levels Ex Godown 
• PPCP   (±0) Rs 95.75 /kg levels Ex Godown.
• PP Lamination  (-1) 95/kg levels Ex Godown
• LLDPE(+0.5) Rs.86.5/kg Ex Mundra/Bhiwandi.
• LDPE prices are around(±0) Rs.116kg 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
• 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

Demand Weakens Amid Declining Virgin LDPE and LLDPE Market Activity 

• There is low demand in the virgin LDPE film market.
• The LDPE and LLDPE electrical pipe grade industries are experiencing a downtrend.The total import quantity of LDPE has decreased month-over-month Market experts forecast no major improvements next year in China’s CFR (PE) and (PP).
• The Virgin LDPE film market is currently sluggish, and market players lack confidence in future prospects. 
• An Asian expert forecasts that in 2025, there will be no significant improvements in China’s CFR polyethylene (PE) and polypropylene (PP) price spread over CFR Japan naphtha costs. 

Crude Oil and Propylene Price Movements Signal Regional Shifts

• Crude oil rises as US Fed cuts interest rate by 25 bps, signals stronger economy.
• Propylene prices gain in Asia.Prices increased on account of higher energy values coupled with improved buying momentum in the Asian region.
• Ethylene prices left unchanged in the United States.

Expert Opinion on Polymer Market Trends

As per manufacturers of LDPE and LLDPE electrical pipes, the market is slow even though procurement is routine. For the past three months, no major movements have been observed.

This outlook is influenced by China’s low GDP growth. China's capacity building self-sufficiency in chemicals, and slowing growth has put them into net exporters.