India PP Prices Stay on Uptrend Amid Local Hikes, Firming Regional Sentiment

Highlights

Import PP raffia prices rise by $15/ton

Budget 2026 infra spend triggers demand

Industry event leads to temporary spot lull

Domestic PP prices see across-the-board hikes

Players hedge volumes against rising C3 costs

India’s polypropylene (PP) market has gained momentum, supported by domestic price hikes and bullish macroeconomic signals from the Union Budget 2026. Seller confidence has strengthened, while import prices from the Middle East have trended higher amid tighter regional availability and firmer global feedstock costs.

Homo-PP raffia and injection grades from the Middle East were assessed $15/ton higher week on week at $860-890/ton CIF India, cash.

Market sentiment has been reinforced by the Union Budget 2026, which allocated INR 12.2 trillion ($135 billion) toward capital expenditure. The increased spending is expected to boost plastics and polymers demand, particularly for durable PP applications in the automotive and industrial sectors. Additionally, new freight corridor developments are anticipated to drive higher consumption of performance polymers.

Despite rising prices, physical market activity saw a brief pause with the commencement of PlastIndia 2026 at Bharat Mandapam in New Delhi. While domestic hikes earlier in the week established a firm price floor, spot transactions temporarily slowed as industry participants attended the expo. Market sources noted that buyers continue to prioritize securing consistent, high-grade material.

An international polyolefins producer stated that participants are actively securing PP raffia volumes to hedge against rising C3 costs. Chinese import prices into India also increased by $10-15/ton during the week.

In the domestic market, workable prices moved higher across the board. Homo-PP raffia was quoted at INR 92,500-97,500/ton ($1026-1082/ton) FD. The country’s leading private-sector refiner raised all PP grades by INR 2,500/ton ($27/ton) effective February 1. Major state-run petrochemical companies and other primary producers mirrored the move to maintain parity. However, the producer kept prices unchanged in its latest revision effective February 5.

Outlook

The near-term outlook for India’s PP market remains positive, supported by infrastructure spending and ongoing project execution. While secondary converters remain cautious following rapid price increases, strong tender activity in water and gas distribution projects—key consumers of specialized PP grades—provides demand support. Buying activity is expected to pick up after the conclusion of PlastIndia 2026 as processors cover requirements for the first quarter.

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