Stable Outlook for LDPE, LLDPE; PP Woven Demand Stagnates

Key Highlights

• Price Trends: LDPE at ₹116/kg and HDPE PE100 at ₹86/kg remain stable; minor variations in LLDPE and HDPE categories observed.
• Demand-Supply Dynamics: Balanced dynamics for LDPE/LLDPE films; subdued demand in the Indian PP woven sector.
• Market News: Sinochem Quanzhou's PP unit resumes operations, adding 200,000 MT/year capacity.
• Expert Insights: Anticipation of stable LDPE/LLDPE prices; industry monitoring crude oil and global economic impacts.

Polymer Prices: Current Market Levels

• PP Raffia (±0) Rs. 90/kg levels Ex Godown
• PP Film (±0) Rs. 99.50/kg levels Ex Godown
• PPCP (±0) Rs. 97.75/kg levels Ex Godown
• PP Lamination (±0) Rs. 97/kg levels Ex Godown
• Low K (DG700) Rs. 79/kg Ex Nhava Sheva/Mundra
• Low K (B57) Rs. 83/kg Ex Nhava Sheva/Mundra
• LG LS100H Rs. 76.50/kg 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
• HD Blow Molding (±0) Rs. 91/kg Ex Mundra/Bhiwandi

Polymer Demand and Supply Outlook

• Market participants expect virgin LDPE and LLDPE film prices to remain stable as we move into the new year. This outlook stems from balanced supply-demand dynamics and the anticipation of no major disruptions in the short term. 
• There is an acknowledgment that temporary price fluctuations might occur, influenced by global market trends, crude oil price movements, or changes in feedstock costs. In the event of a decline in market prices, companies currently offering discounts may withdraw these incentives, reducing price flexibility for buyers
• In contrast, the Indian PP woven industry is experiencing a period of stagnant demand. This lack of momentum is attributed to subdued end-user activity, possibly due to weak downstream consumption or broader economic factors influencing purchasing decisions. 

Polymer News and Plant Updates

• Crude oil markets are closely watching China’s additional stimulus measures, which may boost demand, even as Middle East supply challenges persist.
• Sinochem Quanzhou has successfully brought its No.1 PP unit online, adding capacity to the market.
• FOB Korea propylene prices on Tuesday were assessed at the USD 795-805/mt levels, up USD (+5/mt) from Monday’s assessed levels.
• In plant news, Sinochem Quanzhou Petrochemical has restarted its No.1 Polypropylene (PP) unit on December 8, 2024. The unit was shut for brief maintenance work on December 2, 2024. Located in Quanzhou, Fujian in China, the No.1 PP unit has a production capacity of 200,000 mt/year.
• Styrene Monomer (SM) prices are trending higher across Europe, signaling potential shifts in downstream product markets.

Expert Opinion on Polymer Price Stability

The consensus among market players suggests stability for LDPE and LLDPE film prices in the coming month. Industry participants remain cautiously optimistic, with a close eye on crude oil trends and macroeconomic developments that may influence demand patterns.