Indian Polymer Producers Push Prices Higher Despite Crude Retreat

India’s domestic polypropylene (PP) and polyethylene (PE) markets continued their upward momentum at the start of August, as leading resin producers introduced another round of price increases effective August 1. The latest revisions came even as international crude oil prices softened, highlighting that domestic pricing remains largely influenced by feedstock replacement costs and producer margin protection rather than short-term movements in energy markets.

This marks the second successive increase within a fortnight, extending the price recovery that began in late July. Over the two rounds of hikes, PP prices have climbed by INR 10,000/ton, while LLDPE film has gained INR 9,000/ton. State-owned producers focused their latest increases mainly on HDPE and LLDPE grades, whereas Reliance Industries revised only LDPE prices, as public-sector producers do not supply this product.

LDPE prices increased by INR 2,000–4,000/ton, taking cumulative gains over the past two weeks to INR 7,000–9,000/ton. During the same period, HDPE injection and raffia grades advanced by INR 5,000/ton, while HDPE blow molding, pipe, and HM film grades registered total increases of INR 3,500/ton.

Among all major polymers, PP continued to post the strongest gains. Producers raised PP prices by another INR 5,000/ton from August 1, supported by firmer regional propylene costs. Market participants noted that resin manufacturers are still working through higher-priced feedstock inventories accumulated during previous weeks, limiting the impact of the recent decline in crude oil on domestic PP pricing. PE grades also moved higher, with HDPE increasing by INR 1,500–3,000/ton and LLDPE by INR 4,000/ton.

Despite the producer-led rally, downstream processors are finding it increasingly difficult to absorb the higher resin costs. Packaging manufacturers and automotive component producers continue to face resistance from customers when attempting to pass on additional expenses. Many converters, especially those supplying fixed-price sectors such as cement, fertilizer, and food packaging, are experiencing shrinking margins and have restricted purchases to immediate production requirements.

Imports have offered little relief to buyers. Elevated freight charges, higher war-risk insurance costs, and extended shipping times through the Middle East have kept imported resin prices relatively firm, allowing domestic suppliers to retain strong pricing power. Consequently, traders remain cautious about building inventories and continue to procure material mainly against confirmed orders.

Looking ahead, market participants believe the current rally will face a critical test later this month. If downstream demand fails to improve and converter resistance strengthens further, producers may find it more difficult to sustain additional increases once earlier feedstock cost pressures begin to ease. Until then, most buyers are expected to continue purchasing only essential volumes while closely tracking raw material costs, import parity, and post-monsoon demand trends.

Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.