India’s local PP market extends rally with fresh late-Jan hikes; PE stable

The Indian PP market received a further boost as major domestic producers announced fresh price hikes for PP effective January 24, 2026, while PE prices have been rolled over so far. Market sentiment around PP remains firmly bullish, while PE players appear to be pausing after a strong rebound since mid-December.

PP rally deepens on repeated hikes and tightening supply

The largest Indian private-sector refiner, as well as a major public-sector producer, both raised PP prices by INR1000/ton ($11/ton). Simultaneously, a prominent public-sector joint venture hiked PP by the same amount while rolling over PE offers. These moves reflect persistent bullishness and a concerted effort to pass on rising feedstock costs.

While the latest hikes focus on PP, the broader market has climbed steadily since a definitive turnaround in mid-December 2025. Over the past six weeks, PP prices have surged by a cumulative INR4000-4500/ton ($44-49/ton). Producers in both sectors utilised four distinct rounds of increases in trying to reverse the late-2025 bearishness. In specific segments like raffia, some mid-month revisions reached up to INR1500/ton ($16/ton), driven by localized supply tightness.

PE follows uptrend, but latest revision sees rollover

The PE market has mirrored this recovery, though producers opted for stability in the most recent January 24 revision. Since the December pivot, PE grades have climbed by a total of INR3000-3500/ton ($33-38/ton). While the latest round saw PE prices rolled over by the private sector leader and a public sector joint venture, other public sector entities enforced a INR1000/ton ($11/ton) increase earlier in the month. Infrastructure-heavy grades, such as pipe-grade HDPE, have consistently outperformed the market.

Cost pressures, restocking and outages fuel firming trend

The ongoing rally is primarily a "cost-push" phenomenon, underpinned by upstream energy and feedstock price increases. With Brent crude averaging near $65/bbl in January and regional propylene offers rising, local producers adjusted offers to protect margins. This was further exacerbated by a shift in buyer behaviour, as many converters who held lean inventories in December were forced into restocking while the price floor steadily rose throughout the first half of January.

Supply-side constraints have also begun to reinforce the bullish tone. Reliance Industries shut one of its PP lines at Jamnagar for maintenance on January 22, while its LLDPE plant in the same complex has been offline since mid-January due to an unplanned outage. These disruptions are expected to tighten near-term domestic availability, particularly for PP and LLDPE.

Market participants expect the firming trend to persist into February, though it may face resistance from small-scale converters. For now, the cautious "wait-and-see" approach seen in December has been replaced by active procurement across the board. With domestic availability tightening and competitive import offers becoming scarcer, the sector appears set for a robust first quarter as it shakes off the stagnation of the previous year.