Virgin LDPE Market Holds Steady Amid Low Demand and Ample Supply

Key Highlights

• Current Prices: LDPE 4 MFI SLIP GP priced at ₹1,16,000/MT (Delhi) and ₹1,14,500/MT (Chennai); LDPE 2 MFI NON SLIP at ₹1,13,000/MT (Mundra & Bhiwandi).
• Market Sentiment: Demand remains muted; Reliance’s list price hike hasn’t impacted downstream markets significantly.
• Supply Conditions: No inventory pressure; strong import presence from Saudi Arabia in Apr–May 2024.
• Global Factors: Potential U.S. tariff disruptions could push global prices up by $10–$20/ton.

LDPE Prices Across Key Indian Markets

• The current pricing for virgin LDPE (Low-Density Polyethylene) across key Indian markets shows a fairly stable range. 
• In Delhi, LDPE 4 MFI SLIP GP (Prime) is being offered at ₹1,16,000 per metric ton. Meanwhile, LDPE 2 MFI NON SLIP (Prime) is priced at ₹1,13,000/MT in both Mundra and Bhiwandi, indicating uniformity in Western market rates. 
• In the southern region, Chennai is witnessing slightly lower pricing for LDPE 4 MFI SLIP GP (Prime) at ₹1,14,500/MT, compared to Delhi.

Steady Supply with Limited Import Pressure

• The virgin LDPE market is currently reflecting a stable yet cautious tone driven by a combination of soft demand and sufficient supply. Manufacturers and traders report no major inventory pressure, primarily due to the steady availability of domestic raw materials and limited imports. 
• While Reliance Industries has raised list prices for LDPE Film grades to ₹118–₹119/kg, this increase hasn't translated into stronger downstream pricing or buying sentiment.
• Demand continues to be subdued, with buyers engaging in routine, need-based purchasing. There is no noticeable uptick in offtake, especially from end-product manufacturers who are yet to benefit from the price revisions. 
• On the import front, the highest volume of virgin LDPE imports was recorded from Saudi Arabia in April and May 2024, underlining the country's dominant supply position.
• Looking ahead, potential supply disruption risks—notably from US tariff policies—could impact the global market, possibly prompting a price increase of $10–$20/ton, depending on severity.

Global Developments in Polyethylene & Polypropylene

• Wanhua Chemical has successfully commenced operations at its No.2 Cracker unit in early April 2025. The facility, located in Yantai, China, boasts a significant production capacity with 700,000 tons per year of propylene and 1.2 million tons per year of ethylene. This development is expected to boost the regional supply of key petrochemicals. 
• Meanwhile, PetroChina Jinxi Petrochemical has taken its Styrene Monomer (SM) plant offline for scheduled maintenance. The plant, situated in Liaoning, China, has a production capacity of 60,000 tons per year.
• Advanced Petrochemical Company (APC) is set to begin commercial operations at one of its newly built Polypropylene (PP) production lines in Jubail, Saudi Arabia, during the first week of April 2025. 
• The No.1 PP Line boasts a production capacity of 400,000 tons per year. Additionally, APC has announced that its second PP Line, No.2, is slated to commence operations by May 2025. This expansion marks a significant step in APC's efforts to strengthen its position in the global polypropylene market.

Expert Opinion: Cautious Outlook Amid Global Uncertainty

• Despite the recent price hikes by key domestic producers like Reliance, market activity remains cautious. The market is neither bullish nor bearish, but is in a watchful mode, waiting for clear signals from both domestic and global fronts.
• Cautious buying is the key recommendation, especially with potential Middle East supply fluctuations looming. Buyers are advised to monitor developments closely and avoid overstocking. Until a demand revival is observed, possibly from the packaging or agriculture sectors, LDPE traders and processors should continue operating on short-cycle procurement strategies.
• While price stability may seem comforting, the overall tone is one of strategic restraint, with an eye on future policy changes, shipping dynamics, and any new downstream movement that might hint at recovery.