Indian polyethylene market rebounds after months of downtrend

The Indian polyethylene market tracked an uptrend over the past few weeks, following months of price declines amid slow demand and steady supply.

The PE market began strengthening at the start of the new year, with the HDPE film CFR South Asia marker rising $35/mt through January 2026, and LLDPE film rates increasing by $25/mt during the same period, according to data from Platts, part of S&P Global Energy.

Platts assessed the HDPE film CFR South Asia price at $865/mt Jan. 28, and LLDPE film at $855/mt, up $15/mt and $10/mt, respectively, week over week.

HDPE film and LLDPE prices dropped continually from early August to late December 2025, according to Platts data.

The HDPE film CFR South Asia marker dropped $115/mt to $830/mt on Dec. 3, from $945/mt on Aug. 6. Similarly, the prices of LLDPE film fell $105/mt to $830/mt on Dec. 3, from $935/mt on Aug. 6.

Moreover, the price rise also persisted in the low-density PE film market throughout January, following a persistent weakness in the previous months.

The LDPE film CFR South Asia marker reached a near-two-month high Jan. 30 at $1,050/mt, up $30/mt from Nov. 28 at $1,020/mt.

Acknowledging the firmness in LDPE markets, an India-based trader attributed the price hike to steady demand and reduced import allocations.

However, the LDPE film CFR South Asia marker had dropped continually from the second half of August to early December, 2025, Platts data showed.

The LDPE CFR South Asia marker fell $1,40/mt to $1,010/mt on Dec. 8, the lowest price level in 2025, from $1,150/mt on Aug. 18.

Higher import offers in India

The price uptrend in India's PE market was mainly driven by higher offers from international producers, firming domestic prices, and tighter availability for some grades.

Although some improvement in buying interest also supported prices through January, the overall end-product demand in India remained slow and may gradually rise over the coming months, an India-based PE producer said.

An Indian trader said that international sellers are not negotiating much on offers as supply is tighter and some alternative export markets are also strengthening.

Notably, the African polyethylene market experienced price increases among most PE products in the week to Jan. 28.

Platts assessed the CFR North Africa HDPE film grade spot price at $870/mt on Jan. 28, up $25/mt week over week.

The Middle East polyolefins market also surged in the week to Jan. 28, amid strong demand in most export markets.

Moreover, domestic producers in India have increased their offers in recent days amid the tightening availability of imported PE material due to turnarounds.

Adjacent market strengthens

Meanwhile, the Chinese PE market also saw an uptrend in rates through January, bolstering market sentiment in other regional markets, including India.

"The buying sentiment is improving in India as the China PE market is gradually strengthening," said an Indian polymer producer.

The HDPE film Far East Asia market rose by $30/mt to $840/mt on Jan. 30, from $810/mt on Jan. 6.

The market is seeing increased offer levels amid supply concerns from Iran and expected cargo delays from the US, amid ongoing bad weather in the region.

Positive outlook

Some market participants indicated a steady to firm price trend in India in the coming weeks.

"The demand is likely to rise in the coming days as the winter season ends in some parts of India, and PE prices are expected to increase further," a trader based in Gujarat said.

Sharing similar views, a major international supplier said, "Import offer levels could remain at higher levels for the region amid an increase in domestic PE rates and supply tightening through February"