FORMOSA PVC K67 COMPOUNDED (S65D) in Chennai

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.

The PVC spot market continues its bearish trend, weighed down by weak demand and high production levels. International markets also softened due to lower demand and new capacities in China. Experts forecast continued volatility for January 2025.

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.

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.

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.

India's polymer market is facing oversupply due to increased domestic production, with major players like RIL ramping up capacities. Coupled with stable or declining demand and supply chain uncertainties, prices of key polymers have dropped. Globally, stable ethylene prices and economic changes, such as Mexico's interest rate cut, continue to influence the market.

The polymer market continues to see steady price movements, with minor changes in LLDPE and HDPE grades. Meanwhile, the PVC industry faces challenges such as fluctuating raw material costs and shifting environmental policies, requiring collaborative efforts for resilience. Industry news highlights stable trends in toluene and naphtha, alongside key production updates and investments in biorefineries.

North America continues to dominate the polyvinyl chloride (PVC) resin market due to its robust construction sector, rising healthcare expenditures, and increasing urbanization. These factors are expected to drive steady market growth in the region.