Polypropylene: India BIS Certification Canceled After Two Postponements, Can Export Trade Be Revived?

The cancellation of the implementation of India's BIS certification, along with the complex international situation, may lead to the introduction of other trade protection policies that will affect export trade. Therefore, domestic PP exports continue to face numerous obstacles and challenges, and the PP export market remains uncertain. Continued attention is needed on how to respond in the future.

October Domestic LLDPE Market Review: Weak Sentiment, Prices Continue to Decline

In October, the domestic LLDPE market experienced a declining trend. The average monthly price of LLDPE was 7,225 yuan/ton, down 2.41% from the previous month and 15.40% year-on-year. During the month, the crude oil market showed a trend of first falling, then rising, and then falling again, with limited impact on the PE market from the cost side, mostly reflected in the sentiment of market participants in the commodities sector. After returning to the market post-National Day, affected by macro tariff news and the lack of highlights in the supply and demand fundamentals of the PE market, the overall market sentiment was filled with concerns, and spot PE prices showed a significant decline. With the release of news that China and the United States would engage in trade negotiations in Malaysia at the end of the month, there was a positive signal for China-U.S. trade. At the same time, some downstream factories conducted phased procurement and replenishment, causing spot prices to rise slightly. However, as downstream restocking concluded, the market retreated, and transactions tended to be sluggish.

On February 27, 2024, the Indian Department of Chemicals and Petrochemicals (DCPC) officially issued a quality control order related to three categories of chemicals, including molded and extruded polypropylene (PP) materials, and required that exports of such goods to India obtain BIS certification starting from August 25, 2024. As the implementation date approached, on the evening of August 23, 2024, Indian officials announced that the BIS certification for polypropylene would be postponed to December 24, 2024. On November 12, 2025, the Indian Ministry of Chemicals and Fertilizers published a notification in the "Gazette of India," stating that the government had decided to cancel the BIS certification for 14 chemicals, including PVC, starting from November 12, 2025. This decision aims to simplify market access based on a reassessment of industrial demand and public interest. This cancellation of trade policy has also alleviated some trade barriers faced by the Chinese polypropylene industry.

The BIS certification mark is awarded by the Bureau of Indian Standards (BIS) and refers to the process of testing and auditing products according to Indian BIS standards, resulting in the issuance of a conformity certificate. The certification involves molded and extruded polypropylene (PP) materials, primarily including polypropylene homopolymer products, which will be analyzed further below.

India's export volume is among the top in South Asia and is a major export destination region.

From 2021 to 2025, China's PP export market has gradually evolved from steady growth to rapid expansion. From January to September 2025, China's polypropylene export volume reached 2.3409 million tons, an increase of 28.26% compared to the previous year. This is mainly because China's PP industry is still in a peak period of capacity expansion, with annual new capacity leading global growth. However, domestic demand growth has slowed and cannot absorb such a large supply increase, resulting in continued pressure of oversupply in the domestic market, providing a continuous supply basis for exports. China is rapidly transforming into a "net exporting country," and the phased external market opportunities and arbitrage windows have stabilized overseas customer channels and trade flows. India, facing a supply shortage, has also become a major trade partner for China's exports.

India has always been an important export trade partner for China in the South Asia region. With its large population base and abundant labor force, it has gradually attracted manufacturing companies to establish factories locally, which has accelerated India's rapid development. However, the growth of domestic production capacity has lagged behind, providing a stable market space for Chinese exports. Due to China's polypropylene (PP) prices being consistently low, the export window has opened multiple times. With domestic demand growth slowing, companies have a strong willingness to export and are actively exploring overseas markets at more competitive prices. In recent years, the export trade volume to South Asia has accounted for one-third of the total export trade volume.

However, export volumes also face short-term challenges. India frequently initiates anti-dumping investigations and other trade barriers, causing temporary impacts on export volumes. Meanwhile, the competition from cheap sources in the Middle East is intensifying, exacerbating the competition in the export market.

From January to September 2025, the export volume of PP (Tariff code 39021000) continued to increase year-on-year. According to data from the General Administration of Customs of the People's Republic of China, the PP export volume reached 1.4173 million tons, an increase of 85.23% year-on-year. Among them, the export volume to India was 65,960 tons, an increase of 157.19% year-on-year, with the volume exported to India continuing to rise.

Looking at the market trends for the year, the period around the Spring Festival is a "golden time" for the export market. In addition to the low prices and significant supply pressure providing some support for exports, the high exchange rate of the US dollar throughout the year has also increased the operational space for export opportunities. From March to May, there was a continuous trend of export volumes exceeding import volumes. As new capacities from domestic producers such as Baofeng and ExxonMobil (Huizhou) gradually come online, domestic supply remains ample. In order to alleviate inventory pressure, fulfill sales plans, and increase market share, domestic petrochemical companies have actively lowered prices for sales. Starting in May, the sharp increase in tariffs on propane and shipping costs interfered with the situation. To maintain export advantages, some petrochemical companies also continued to lower their FOB prices, and the high exchange rate of the US dollar further increased the operational space for exports. Although exports weakened in June, they are expected to maintain a basic volume. From July to September, as overseas facility maintenance decreases and on-site demand remains weak, export volumes came under pressure and declined, with exports of PP to India also decreasing, but still remaining higher than the same period in previous years.

India BIS certification canceled, exports are expected to be mainly phased throughout the year.

Despite the fact that India issued quality control requirements for molded and extruded polypropylene (PP) materials at the beginning of the year, the certification process has progressed slowly due to uncertainties in policy adjustments and unclear implementation procedures. As of now, no company has completed the certification, and the recent direct cancellation of the BIS certification has dispelled earlier market expectations that the enforcement of BIS certification would negatively impact the domestic PP market.

Although the cancellation of India's BIS certification alleviates some concerns, it has limited impact on boosting the export market. As the international situation becomes increasingly complex, other trade protection policies may be introduced, affecting export trade. Therefore, domestic PP exports still face numerous obstacles and challenges. To proactively seek breakthroughs in this chaos, it is essential to seize opportunities in the export environment while actively pursuing innovative development, adjusting and enhancing product structures, exploring and expanding into other international markets, and seeking broader export opportunities.