Daily Market Report

The Indian polymer market remains subdued amid monsoon-driven demand slowdown and global freight issues. While domestic suppliers offer incentives to stimulate sales, geopolitical tensions—especially the Strait of Hormuz crisis—are driving crude prices higher, impacting raw material costs. BIS compliance deadlines are also reshaping sourcing behavior toward certified domestic suppliers.

PET bottle chip prices remained under pressure amid weak feedstock costs and muted downstream demand. While domestic production dipped due to maintenance, supply remains ample. Export momentum slowed, and high end-product inventories curbed fresh bulk buying. Crude oil weakness and global trade uncertainties are expected to keep prices subdued.

The Chinese polypropylene market continued consolidating in May 2025, with wire-drawing grade PP prices dipping 1.18% to $1,030/ton. Stable production, high inventories, and off-season demand weighed on prices. Despite slight export improvements and tariff optimism, buyers remain cautious amid macroeconomic uncertainty and incoming capacity expansions expected to pressure the market further.

Indian ABS prices varied across brands and cities, reflecting regional differences. China’s ABS market saw initial declines followed by recovery, driven by supply adjustments and improved trade relations with the U.S. Overall, the ABS market is expected to remain stable or slightly weaker in the near term amid balanced demand and supply conditions.

PVC K67 prices in Mundra range from ₹64,500 to ₹68,750/MT, with Chinese SG5 grades leading on price. Despite strong 10% YoY demand growth, oversupply and Chinese dumping have pressured international prices, now 25% lower than FY 2022–23. India’s PVC market is poised for structural change, with BIS certification and anti-dumping duties kicking in by mid-2025.

In the first week of June 2025, polyethylene (PE) product prices remained largely stable across LDPE, LLDPE, and HDPE categories. Downstream demand from agricultural and packaging films remained supportive, but segments like raffia and injection moulding showed weaker activity. HDPE supply constraints continue due to maintenance shutdowns. Market sentiment suggests limited price upside without stronger demand or feedstock cost increases.

HDPE prices across Asian markets remained mostly unchanged this week. In India, subdued demand and limited spot imports kept the market quiet, with expectations of better domestic supply from upcoming plant restarts. With monsoon season approaching and Eid holidays nearing in the Middle East, market sentiment remains cautious and volumes tight.

PP prices in Delhi remain steady, with PPCP random grades peaking at ₹1,09,000/MT. Chinese PP prices dipped 0.74% in May, reflecting stable but subdued demand. While supply remains ample with upcoming capacity additions, off-season demand and high inventories are capping price momentum. Market expected to stay in consolidation.

Chinese PET bottle chip prices saw sharp fluctuations in May 2025, rising to ¥6,185/ton mid-month due to crude and feedstock gains, then easing to ¥6,077/ton amid supply pressure. High inventories, policy uncertainty, and weak demand kept recovery in check. A seasonal uptick may occur if beverage demand strengthens.

Styrene Monomer prices strengthened across Asia despite weak crude trends, with Indian bulk imports priced at ₹82/kg. Domestic Styrene Copolymer markets remained subdued in April, but demand is expected to rebound from June. Upstream benzene prices firmed up, while traders anticipate steady price hikes due to seasonal demand and tighter supply.

Brazil’s polyethylene (PE) market is experiencing a surge in prices and demand amid expectations of antidumping duties (ADDs) on US and Canadian imports. Domestic supply remains tight, and distributors are passing on cost increases. Gecex is set to decide on ADDs by 29 May, potentially reshaping Brazil’s import dynamics.

Wankai PET prices stable across Indian ports despite weak cost fundamentals. Industry margins decline to -44 USD/ton due to low raw material prices and high polymerization costs. China's aggressive PET production and oversupply continue to suppress Asian market prices. Jindal Films fire disrupts BOPP supply, triggering sharp price hikes and market panic.