HMEL MDPE BM (B0148D) in Howrah

Polymer prices reflect continued market weakness as both supply and demand face challenges. Increased production and imports are pressuring supply, while limited demand follow-up and inventory replenishment dominate downstream activities. Maintenance shutdowns by major producers like Reliance aim to stabilize operations.

Polyethylene (PE) prices remained stable domestically, with minor adjustments across segments. Global markets faced bearish sentiment due to weak demand, oversupply, and cautious trading in Asia and the US. Indian suppliers reduced prices to clear inventories, while processors began stockpiling. Recovery is unlikely in the near term due to market uncertainties.

Polymer prices remain stable with minor fluctuations in specific grades. Domestic PE supplies are expected to increase as key Indian producers resume operations. Import demand stays limited amid uncertainty and inventory losses. International polymer production restarts and a higher exchange rate for import valuation add to market dynamics.

Polymer prices remained largely stable, with slight fluctuations in select grades like HDPE PE100 Natural (-₹2/kg) and LLDPE (+₹0.5/kg). Demand for HDPE blow and PVC is declining as PET gains market share. Virgin polymer markets see routine orders but below expected levels. Global trends include price hikes and plant maintenance updates.

The polymer market remains subdued with minimal price changes and declining demand for LDPE and LLDPE grades, particularly in electrical pipe applications. Crude oil price gains and propylene price increases in Asia signal potential market shifts.

Polymer prices in India are rising due to speculative inventory hoarding ahead of a potential duty hike targeting non-BIS-compliant materials. Market trends suggest further price increases through February, with close attention to fiscal policy announcements.

PVC prices range between ₹74-77.75/kg, with a notable oversupply in the Asian market due to increased production and declining real estate demand. Despite a 2.5% rise in production to 20.5 million tons in 2024, apparent consumption fell, exacerbating inventory build-ups and pressuring prices downward in a sluggish economic environment.

PET prices remain stable, with Reliance at Rs. 93,000/MT and Wankai 801 at Rs. 86,500/MT. Malaysia has imposed provisional anti-dumping duties (ADDs) on PET imports from China and Indonesia, ranging from 6.33% to 37.44%, to protect its domestic PET industry. This could stabilize local PET supply while causing minor cost increases for downstream sectors.

Polypropylene (PP) prices remain steady in domestic and global markets as supply outpaces demand. Domestic output has increased slightly, with abundant inventories and moderate seasonal demand in sectors like packaging. Global supply chains are supported by imports, while maintenance shutdowns in China and Saudi Arabia contribute minimally to price movements.