Daily Market Report

PP prices surged in February 2025 due to supply shortages from Middle Eastern and Asian producers, logistical disruptions, and rising feedstock costs. While the packaging sector remains stable, demand in automotive and construction is weak. Market experts anticipate further price increases amid supply constraints, particularly before Ramadan.

India's PVC market is witnessing steady demand from infrastructure and agriculture sectors. Prices remain competitive, with manufacturers expanding capacity to meet rising needs. Global supply disruptions and fluctuating raw material costs could impact pricing. Despite near-term volatility, the outlook remains positive as demand strengthens and production capacity increases.

The polyethylene market remains under pressure as weak demand and increased spot availability lead to price adjustments. HDPE prices saw minor fluctuations, while LDPE found support due to supply constraints. Global crude oil trends and scheduled production shutdowns are influencing market sentiment. Demand recovery is expected by mid-to-late February.

PVC markets remain under pressure as weak demand in China and Europe limits price recovery. India’s PVC market may stabilize soon, but global fundamentals remain bearish. Freight costs have eased, Reliance increased LDPE & HDPE prices, and supply disruptions from TotalEnergies & LG Chem could impact global trade flows.

HDPE prices remain weak due to oversupply and sluggish demand, with China hitting five-year lows. New production capacities further strain the market, while geopolitical tensions add uncertainty. With crude oil prices down and futures showing bearish trends, HDPE prices are likely to stay under pressure unless demand sees a significant recovery.

Polystyrene prices increased in January, driven by strong export demand, restocking, and higher benzene costs. Prices later stabilized despite fluctuations in feedstock ethylene and styrene. Supply tightened due to reduced imports and limited production expansions. While cost pressures persist, steady demand from packaging and construction supports a stable market outlook.

PET prices in New Delhi rose to ₹92/kg, driven by higher raw material costs amid U.S. sanctions on Russia and increased energy demand. While production costs remain low, cautious downstream buying has limited trading activity. The market is expected to remain volatile, closely tracking international oil price movements and supply conditions.

The ABS polymer market remained stable in January, with slight price increases in some grades. Production fluctuated, impacting inventory levels, while raw material prices remained firm. Demand spiked pre-holiday but slowed during the Spring Festival. The market is expected to stabilize in February, with prices influenced by supply adjustments and raw material costs.

In Chennai, PPHP raffia grade is priced at ₹98,000/ton, while in Mundra, injection molding (IM) grade is available at ₹99,000/ton. Rajkot reports lamination grade at ₹101,000/ton. In Ahmedabad, raffia grade is listed at ₹89,750 per metric ton, and in Daman, IM grade is priced at ₹99,000/ton.

Indian polymer prices fluctuate amidst steady PP and PE demand. International suppliers raise prices, while Middle Eastern supply is restricted. Chinese suppliers offer competitive rates. LDPE faces tight supply, whereas HDPE demand weakens.

PVC prices across global markets remain stable, with slight fluctuations in Asia and the United States. A potential anti-dumping investigation by India's DGTR could influence future pricing dynamics. Supply and demand balance continues, though weaker demand is expected as the Chinese New Year approaches.

The styrene market shows mixed trends, balancing adequate supply and moderate demand. Prices rose marginally in China to 8,550 Yuan/MT. Imported styrene at Kandla is priced at ₹95.5/kg. Despite seasonal stocking, increasing inventories weigh on market momentum. Near-term fluctuations are expected, influenced by supply pressures and cautious demand recovery.