Indian Producers Extend PP, PE Rally with Third Consecutive Hike Amid Feedstock Squeeze

Indian polymer producers have implemented a third consecutive price hike for polypropylene (PP) and polyethylene (PE), driven by a feedstock squeeze. This coordinated increase comes amid a significant drop in imports, exacerbated by logistical challenges from the US-Iran conflict.

According to ChemOrbis, domestic producers are responding to feedstock shortages by raising prices for PP, HDPE, LLDPE, and LDPE. The supply constraints have been intensified by the Indian government's directive for refiners to prioritize propane, butene, and propylene for cooking gas production, limiting availability for petrochemical production.

Argus Media reports a notable decline in India's imports of PE and PP in March, with PE imports down 28% month-on-month and PP imports down 17%. The closure of the Strait of Hormuz has forced Middle Eastern suppliers to reroute shipments, impacting supply to India.

Reliance Industries Limited has also increased domestic PP prices, reflecting the broader trend of rising polymer costs. The ongoing supply disruptions and price hikes are affecting various sectors, including cement, where HDPE price spikes translate to increased costs.