Indian Oil Corporation and GAIL India have announced significant polymer price hikes, sending shockwaves through the plastics processing industry. The price increases, affecting polyethylene, polypropylene, and PVC grades, are attributed to rising feedstock costs following global crude oil price volatility and supply disruptions from key petrochemical producing regions.
Plastic converters and manufacturers are facing a severe margin squeeze as they struggle to pass on higher raw material costs to customers who are already dealing with weak demand in certain sectors. Small and medium processors, who typically operate on thin margins and lack the pricing power of large manufacturers, are particularly vulnerable.
AIPMA has urged IOC and GAIL to provide advance notice of price changes and consider deferred payment arrangements for smaller buyers. The industry is also calling for strategic polymer reserves to buffer against supply shocks and provide price stability during periods of global market turbulence.
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