India’s Polyethylene and polypropylene prices liable to stay stable till the end of 2021

In the Indian market, the prices of Polypropylene and Polyethylene were rolled over amid stable demand and sufficient supply. Polypropylene price in the Indian market were observed to be INR 113000/ ton for injection moulding Ex-Silvassa and INR 113240/ton for Raffia Ex-Silvassa. The LDPE prices were INR 145179/ton Liquid Packaging grade Ex Mumbai, for HDPE it is INR 110220/ton for Pipe grade Ex-Silvassa.

India’s PP and PE market had stable so far and the prices continued to be capped due to oversupplies and bearish demand. However, prices were at lower as the sluggish upstream Ethylene and crude oil had impacted the polymer market in India. Major Polymer producers like Reliance Industrial Limited (RIL), IOCL, Mangalore Refinery and Petrochemical Limited had defer revisions and kept the prices stable.  The pressure on downstream Packaging producers in the domestic market to clear the stocks had solidly impacted the Plastic business. The overseas supplies had moreover decreased due to adequate supplies and high inventories. The weaker cost of PP and PE had generally provoked by more fragile upstream propylene and ethylene costs and recuperating supply.

According to ChemAnaylst, that the prices will remain stable in the upcoming weeks for PP and PE market. However, high Inventories will make strain on the downstream market to clear their stocks. Upstream Ethylene and polyethylene costs are expected to drop in the Indian market. It is assessed that the imports from abroad providers will affect due to adequate Polyethylene and Polypropylene stock in the domestic market. The freight cost are expected to reduce due to slower industrial activities and sufficient storage for the vessels. It can be concluded that outlook for Q1 of 2022 will remain bearish and excess supply of both ethylene and propylene will pressure prices of both products for a long while.