India Linear Low-Density Polyethylene (LLDPE) Demand to Touch 3.5 Million Tonnes by 2030
by Chem Analyst Chemical Database PriceAccording to ChemAnalyst report,
“India LLDPE Market: Plant Capacity, Production, Operating Efficiency,
Technology, Process, Demand & Supply, Grade, End Use, Application,
Distribution Channel, Region, Competition, Trade, Customer & Price
Intelligence Market Analysis, 2015-2030”,
India Linear Low-Density Polyethylene (LDPE) market is projected to grow
at a CAGR of around 7.1% during
the forecast period. Rising consumer preference for flexible packaging films in
packaged food and beverages backed by strong demand for rotational molding grade
which supports fabrication of products which seem impossible to be produced by
other processes is expected to drive LLDPE demand in India during the forecast
period.
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LLDPE Prices
LLDPE sector leads the India
Polyethylene market and is likely to register the sharpest growth due better
characteristics than other polyethylenes. Demand for LLDPE holds diverse
applications in milk and edible oil packaging, lamination films, extrusion
coating, cast films, stretch films, specialty films, rotomoulding and injection
moulding. Excellent barrier properties, better affordability, superior
toughness and enhanced puncture resistance ensure that LLDPE remains the most
preferred choice in the packaged food industry. Packaging sector accounts for
more than 60% of the country’s total LLDPE demand, backed by growing demand for
convenient and safe packaging of food and pharmaceutical products. LLDPE films also
popularly used in carrier bags, pouches, and agricultural covering films and
other applications. Rising penetration of new entrepreneurs in the Indian
packaging industry and government incentives to promote small and medium
enterprises will contribute to the overall growth of Indian LLDPE industry in
the forecast period. Moreover, Prime Minister Narendra Modi’s vision to make
India a global manufacturing hub will augment the healthy growth of India’s LLDPE
market.
Chemical-Pricing: https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False
Key LLDPE players anticipate rotational
molding as one of the fastest growing plastics processing methods in the next
five years. The robust growth can be expected because rotational molding can be
used for manufacturing materials of versatile shapes and sizes that could not
be achieved using traditional vinyl processes. LLDPE roto molding grades
serving vast applications in automotive parts, toys, insulated containers,
tanks etc. is expected to drive the overall LLDPE market in the forecast period.
Demand of polymer products remained
strongly affected throughout Q4FY20, due to indefinite halt in industrial
activities caused due to the sudden outbreak of novel coronavirus. Hit by the
demand downturn, LLDPE film CFR prices in India dropped by $10 per tonne with
strong fluctuations between $790-830/tonne in Q4FY20 due to COVID-19 related
uncertainties. Hit by the pandemic woes, local LLDPE players had to balance
with swelling inventories and recorded significant slump in annual polyethylene
sales. Reduced offtake by the downstream end-users forced several state
controlled LLDPE refiners such as OPAL and RIL to curtail operating rates at
their petrochemical production units by more than 30%. However, with ease in
lockdown restrictions in May, the companies scaled up their production
activities up to 70% to recover the potential losses. Despite unprecedented
downfall in the Indian economy due to underperformance of the industrial
sector, the demand for polymers is likely to sustain in this fiscal and
gradually rise in the years to come as India has geared up to become a
self-reliant country with constant support of the Indian government. Prices of
LLDPE will reach to their pre pandemic levels by Q2 FY21 and will erase out the
incurred losses with strengthening demand.
According to
ChemAnalyst report, “India Low-Density Polyethylene (LDPE) Market: Plant
Capacity, Production, Operating Efficiency, Process, Demand & Supply,
Application, End Use, Distribution Channel, Region, Competition, Trade,
Customer & Price Intelligence Market Analysis, 2015-2030”, some of the
major players operating in India LLDPE market are Reliance Industries Limited,
GAIL India Limited, Indian Oil Corporation Limited, Haldia Petrochemicals
Limited, ONGC Petro additions Limited and Brahmaputra Cracker and Polymer
Limited. RIL leads the domestic LLDPE market with about 23% market share.
Globally, the company is the world’s 7th largest producer of LLDPE and is
expected to expand its global footprints with hefty investment plans in the
coming fiscals. The Dow Chemical Company, ExxonMobil, SABIC, QAPCO etc. are
some of leading international players operating in the India LLDPE market. Scheduled
capacity expansions and new players venturing into the domestic market are
likely to propel the LLDPE market growth in the forecast period. In 2019, India’s
HPCL-Mittal Energy Ltd (HMEL) received environmental clearance for adding a
polymer unit at its Guru Gobind Singh refinery and Petrochemical complex. The
proposed project is expected to complete by April 2021 and would house two
LLDPE/HDPE swing plants of capacity 400 KTPA each, a 500 KTPA Polypropylene
plant, a 450 KTPA HDPE unit and a 55 KTPA butane-1 line.
“India is the second largest polymer consumer in Asia after
China. Polymer demand in India is strongly driven by increasing disposable
income and exceptional growth in its e-commerce sector. Almost 80% of the global
LLDPE is used in films for applications such as food and non-food packaging,
shrink & stretch film, and non-packaging uses. India’s huge volumes of
produced LLDPE goes into single-use packaging. Food packaging is one of the
major growing areas of the industry as people become more adaptable to packaged
and frozen foods. Sectoral growth is also promoted as people are increasingly
shifting their focus from packing in rigid containers to high quality flexible
packages. Although COVID-19 rendered a deep injury to the Indian polymer
industry, abundant low-cost feedstocks will create lucrative opportunities for
the Indian firms. Moreover, domestic players aggressively expanding their
capacities and investing in world class LDPE processing technologies would
further enhance the penetration of the local players in the international
markets. Looking at the market uncertainties, long-term supply-chain analysis
and procurement strategies will have a decisive impact on the growth trajectory
of the country’s LLDPE market in the years to come.“said Mr. Karan Chechi,
Research Director with TechSci Research, a research based global management
consulting firm promoting ChemAnalyst.
Browse Related Reports:
India
High Density Polyethylene (HDPE) Pricing, Supply and Demand
India
Low-Density Polyethylene (LDPE) Prices, News and Analysis
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Created on Jun 5th 2020 03:46. Viewed 213 times.