From the Presidents Desk
Vol No. 14, Issue No. 12, June 2026
Dear Members,
Greetings from Organization of Plastics Processors of India!
As I write this message, USA-Iran Ceasefire agreement has come in force.
The immediate impact is positive for Indian Plastic Processors because the ceasefire has sharply reduced fears of a prolonged Strait of Hormuz disruption, causing crude oil and petrochemical feedstock prices to fall back toward pre-war levels. The biggest near-term benefit is lower raw-material cost pressure and better availability of PE, PP, PVC, PET and other polymers.
Brent crude has fallen from the conflict spike back toward roughly $70-75/bbl, tanker traffic through Hormuz has resumed, and polymer import offers are expected to soften within days.
We expect cheaper polymers, better Gulf supply availability, and improved export quoting conditions over the next few weeks. The main caution is inventory devaluation for processors who stocked resin at wartime prices. If the ceasefire holds through July- August, PET sheet margins in India should improve meaningfully as PTNPET feedstocks reset lower.
India is experiencing a weak/ deficient monsoon. It can have a significant impact on the Indian Plastics Processing Industry. The effects are transmitted through agriculture, water availability, electricity generation, consumer demand, and overall economic growth.
A weak monsoon is likely to moderately affect the Indian plastics processing industry, with the greatest impact on agricultural plastics, irrigation pipes, rural consumer products, and water- intensive manufacturing operations. Companies that improve water efficiency, reduce energy consumption, diversify into essential products, expand exports, and invest in recycling and renewable energy will be better positioned to withstand the effects of deficient rainfall.
For the industry as a whole, water management, energy efficiency, and a strategic shift toward products linked to water conservation and essential infrastructure will be the most effective response.
With Best Wishes,
Pradeep Rathod
President, OPPI