India's import PE recovery gathers pace on higher local prices and firm replacement costs

India’s import PE market continued its upward trajectory this week, marking a third consecutive week of gains after a prolonged three-month correction. Higher domestic prices, firm import replacement costs, and elevated freight rates continued to underpin import offers from the Middle East, while buyers maintained a cautious purchasing strategy amid compressed processing margins.

Although crude oil and regional ethylene values softened over the week, supply-side discipline and resilient downstream demand kept the market on a firmer footing.

Recovery gains momentum after three-month correction

The latest increases signal a notable shift in market direction following nearly three months of uninterrupted declines. Import PE prices had surged sharply in early March amid disruptions triggered by the US-Iran conflict, before entering a lengthy correction phase from early April onward.

The recent three-week recovery suggests the market may be finding a floor as replacement costs strengthen and suppliers regain pricing power after months of downward pressure.

Middle Eastern suppliers maintain firm stance

Market participants said Middle Eastern suppliers continued to defend their offers by limiting spot allocations, supported by firm replacement costs and persistent freight-related challenges.

LDPE film once again led the gains, reflecting ongoing global tightness in high-pressure PE availability, while LLDPE film also moved higher. HDPE film saw more modest changes but remained supported by the overall firm market sentiment.

Demand remains cautious but supportive

Despite the improving price environment, buyers continued to purchase primarily on a hand-to-mouth basis as processing margins remained under pressure.

Even so, steady demand from flexible packaging and industrial film applications, along with preparations for the upcoming festive season, continued to generate buying interest. Market players noted that these demand fundamentals helped absorb import offers despite elevated landed costs, lending additional support to the recent recovery.