Daily Market Report

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.

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.

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.

PET prices have increased due to rising production costs, fuelled by surging crude oil prices and higher polyester raw material rates. While new production facilities may ease supply constraints, short-term growth remains limited as downstream buyers adopt a cautious approach. The approaching Spring Festival is expected to bolster domestic demand for PET, supporting market stability amidst rising supply levels.

As of January 8th, ABS prices in India remain stable at ₹139,000/MT across major cities. While supply has increased, reaching 74% capacity utilization, downstream demand softened amid cautious purchasing. Upstream cost fluctuations and pre-holiday buying offered limited support. Analysts expect weak consolidation, with potential post-holiday recovery driven by policy incentives.

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.

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.

The decline in polymer demand and prices in India is expected to persist, driven by economic conditions, supply chain dynamics, increased domestic production, crude oil price fluctuations, government policies, and environmental factors, shaping market trends and stakeholder decisions.

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.

LLDPE prices in January 2025 show upward trends due to tight supply pressures, with 2 MFI Non-Slip priced at Rs. 89190/MT. However, downstream demand remains weak. Key industry developments include maintenance shutdowns in China and Saudi Aramco's propane price cuts. Experts predict continued challenges due to subdued demand and tight cash flows.