India’s Recycled Linear Low-Density Polyethylene (R-LLDPE) market remained steady for most of September 2025, with prices being unchanged for three weeks due to balanced supply and demand from the packaging sector. A 4% increase was observed in the last week, followed by a 2% rise in the first week of October, driven by e-commerce and pre-Diwali orders.
The R-LLDPE market in India began September with stability, similar to August, when steady production and low imports supported competitive local supply. In the first week, R-LLDPE market sentiment reflected cautious buying, backed by expected price increases in the latter from infrastructure growth. Packaging led demand, with e-commerce FMCG sectors as key drivers, while agricultural uses for greenhouse films and irrigation remained consistent.
This balance continued through the second and third weeks, with R-LLDPE prices showing no change, reflecting a 12-week stable trend. The market remained stable due to consistent buying and production, with supply chains benefiting from better feedstock access and smooth logistics to major manufacturing hubs. Moreover, polyolefin waste collections ensured enough scrap inputs, while e-commerce parcel demand kept courier-bag demand constant.
In the final week of September, R-LLDPE prices rose 4%. Increased local demand drove this, especially from pre-Diwali flexible-packaging orders that improved immediate use. E-commerce demand for aircushions and bubble wraps remained high, balancing reduced export demand in garments and automotive packaging.
Downstream sectors supported this R-LLDPE price increase. In packaging, September saw steady growth despite challenges. E-commerce activities drove demand for recycled materials, meeting rules requiring 30% recycled content in rigid packs, while pharmaceuticals maintained strong demand. FMCG sector faced brief trade challenges from new GST slabs delaying some purchases, but quick-commerce and cold-chain demand kept orders flowing.
The automobile sector outpaced August’s 3% year-on-year growth. September sales rose by about 5%, with passenger vehicles up by 6% due to festive bookings and tax changes. Two-wheelers’ sales increased, while commercial vehicles gained from e-commerce logistics and infrastructure demand, with tractor sales being boosted due to monsoon rains, supporting the demand for R-LLDPE.
In the first week of October, R-LLDPE prices increased by 2%, driven by steady flexible-packaging and FMCG shrink-film demand. Pre-Diwali demand and busy e-commerce logistics used large pellet volumes, despite good scrap availability and unhindered polymer supply. Stable warehouse levels showed no immediate product shortages, but improved downstream activity kept R-LLDPE prices higher.
For Q4, R-LLDPE market is expected to see gradual growth. In the rest of October, prices are anticipated to increase by 2% due to festive dispatches and agricultural film demand, with potential growth in transportation costs. November could see further increase in R-LLDPE costs, with post-festive restocking and winter projects maintaining demand. However, a decrease of about 2% is predicted for December, due to year-end FMCG and export declines, supported by sufficient stocks and normal lead times.
