India Low-Density Polyethylene (LDPE) Demand to Cross 900 KTPA Mark by 2030
by Chem Analyst Chemical Database PriceAccording 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”,
India Low-Density Polyethylene (LDPE) market is projected to grow at a
CAGR of 5.52% during the
forecast period due to Increasing consumer preference for innovative,
lightweight, and convenient packaging in the FMCG industry backed by increasing
demand for LDPE shrink films for bundle-packaging of beverages and eatables during
the forecast period.
Browse Complete Report : India
Low-Density Polyethylene (LDPE) Market Prices
LDPE is the most ubiquitous of
all polyethylene because it is cheap to make, light in weight and is strong
enough to withstand environmental stresses and rough handling. LDPE finds
extensive applications in heavy-duty films, lamination films, extrusion coating
and moulding applications. Lamination films hold a significant market share in the
India LDPE demand (about 40 per cent) backed by a boost in the country’s
packaging sector. There has been a consistent rise in demand for LDPE films for
wrapping poultry, dairy products, snacks and sweets, frozen food and bakery
products with heightened hygiene standards. LDPE shrink films are globally
preferred over other polyethylene films for packing heavy bundles of large
items like beverage cans and packs of edible oils. Moreover, demand for intact
LDPE pouches and carry bags has been increasingly growing for storing pharma
drugs for longer durations. These factors are likely to support the growth of
LDPE market in the forecast period.
Chemical-Pricing: https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False
Outbreak of novel coronavirus had
a significant impact on the country’s LDPE sector as several Indian ports
declared force majeure to contain the spread of coronavirus pandemic. In
Q4FY20, LDPE supplies remained tightened as key southeast Asian players such as
Lotte Chemical Titan temporarily shut their manufacturing units further hit by
undue delays in scheduled capacity expansions. LDPE film CFR India prices dived
by 2 per cent in the fourth quarter oscillating between $900-920/ tonne, due to
overall industrial slowdown. However, manufacturers are sensing speedy recovery
in the industry as India experiences strong wave of self-dependency amid
COVID-19 related uncertainties and a strong boost in its FMCG and
pharmaceutical sector. Moreover, government’s initiatives towards making India
a global manufacturing hub such as “Make in India” Scheme and rising
investments towards promoting advanced packaging technologies in MSMEs will
support the growth of India LDPE market despite all odds.
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”, Currently,
Reliance Industries Limited is the only manufacturer of LDPE in India and holds
around 60% share in the domestic LDPE market. The company is continuously
ramping up its capacity at Jamnagar petrochemical complex to cater to country’s
growing domestic LDPE demand. RIL uses LyondellBasell’s Lupotech technology for
LDPE production which is the most popularly used technology across the globe. Some
of the other players operating in the
LDPE market are Rakha Al-Khaleej International (RAI) FZCO, Abu Dhabi
Polymers Company (Borouge), Saudi Kayan Petrochemical Co., Sinopec Corp.,
Beijing Yanshan Petrochemical Co., Ltd., ExxonMobil Chemical Co, Qatar
Petrochemical Company, Borealis AB, The Dow Chemical Company, LyondellBasell,
Saudi Basic Industries Corporation (SABIC) etc.
“Polymer demand suffered a major
blow after the onset of coronavirus. Domestic LDPE prices remained relatively
stable in the fourth quarter as players recorded drop in inventory levels amid restricted
imports in the country due to lockdown measures. Polymers are processed from
crude oil in refineries and hence their prices vary proportionately to crude
oil except when their demand-supply factors become deciding factors in short
term. Manufacturers are anticipating better profit margins in the forthcoming
quarters in tandem with the collapse in upstream crude oil prices which would
further suppress their input cost. With local players striving to establish a
strong customer base across the globe backed by hefty industrial investments in
accord with the government’s “Make in India” scheme, country’s LDPE market is
expected to get a strong boost in the coming years. Moreover, with the
expansion of the domestic packaging sector which is likely to register Y-O-Y
growth of about 20 per cent, the demand for LDPE shrink films will surpass its
already existing levels. As India focusses on becoming self-reliant, there is a
strong likelihood that LDPE imports will substantially fall in the coming
years. Looking at the volatility in the market dynamics, it is important for
domestic players to plan efficient utilization of their assets and strategize
their expenditures to maintain their position in the India LDPE market.” 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 and Price, Demand & Supply 2030
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