India’s PP, PE markets slide deeper as October opens with fresh cuts

India’s polyolefins markets entered October on a distinctly bearish footing, with both PP and PE seeing new price cuts in import and domestic markets. Oversupply, monsoon-related slowdowns, and subdued downstream demand weighed heavily on sentiment. Players said the removal of price protection by the country’s major producer underscored the defensive tone, leaving buyers cautious and restricting activity to hand-to-mouth purchases.

Import prices at multi-month or yearly lows

Import offers for Mid-Eastern homo-PP raffia and injection were assessed $25/ton lower from last week. At this week’s average of $845/ton, PP prices are down 14% from the February-March peak of $985/ton, according to ChemOrbis Price Index data. Traders reported that deals barely cleared $850-860/ton, with firm buying interest capped at $830/ton.

Import LDPE and HDPE film offers from the Middle East were also assessed $5-10/ton lower from last week, with their weekly averages hovering around 8.5-month and 4-month lows, respectively. LLDPE film, meanwhile, held steady at record lows in ChemOrbis data since 2022. Traders said competitive offers failed to draw demand as buyers held back for further softening.

Domestic cuts, protection lifted

India’s major domestic producer reduced local PP prices by INR1,500/ton ($18/ton) and removed price protection effective October 1. Deemed export PP prices were also trimmed by INR1,000/ton ($12/ton). This special rate applies to domestic buyers who convert virgin polymers into export-bound finished goods.

On the PE side, the producer cut prices by INR2,000/ton ($23/ton) for LDPE film, and by INR1,000/ton ($12/ton) for HDPE and LLDPE. Price protection was also withdrawn, intensifying the wait-and-watch stance among buyers.

Traders said the absence of protection added caution to purchases. “Oversupply is the structural issue,” one PP trader noted, “and until festive demand or new infrastructure spending arrives, sellers will keep struggling to move volumes.”

Other players described both PP and PE markets as “classic buyers’ markets,” with converters holding minimal stocks and resisting higher offers. With no new infrastructure tenders, heavy monsoon rains, and high inventories, most expect bearishness to persist unless triggered by festive-season demand, government spending, or a rebound in energy markets.