India Remains on Top in Asia for Demand of Polyolefins Chemicals
04 December 2023
India is expected to remain on
top in Asia for demand of petrochemical in 2024 given its strong economic
growth and resilient industrial production. However, the greater demand is
unlikely ro bring much relief to domestic producers struggling with pressure on
margins as prices of key chemicals in bulk are expected to remain suppressed
due to ample supplies and new capacities coming on stream. According to a
report, India’s market for chemical commodities is predicted to grow at around
7% in 2023 and 8% in 2024.
The robust demand of India’s
chemical products is being driven by a sharp flow of economic activities after
the country emerged from COVID-19 lockdowns. While India’s domestic chemicals
demand is expected to stay strong in 2024, price expectations will not be very
robust as the market struggles to find the right balance. This is due to new
production capacities on stream in the country and in the rest of Asia, weak
global demand, changing trade flows and volatile upstream prices.
India’s Imports of Polyolefins
India’s import of polyolefins
– the largest chunk of its petrochemical import market surged significantly in
2023, crossed USD 200 million mark in first half of the year itself. This led
by higher demand and increased imports from China, where downstream demand
scenario stood weak. India’s imports of polyolefins from the world totalled USD
159 million in 2020, that increased to USD 360 million in 2022.
Year |
Value USD Million |
2020 |
159 |
2021 |
296 |
2022 |
360 |
Also, take a look on India’s
imports of polyolefins reported from January to July in 2023.
Month |
Value USD Million |
Jan |
28 |
Feb |
26 |
Mar |
32 |
Apr |
31 |
May |
31 |
Jun |
24 |
Jul |
28 |
India’s Imports of Polyolefins
by Origin Country
India imported polyolefins the
most to South Korea in 2022, followed by the United Arab Emirates, the United
States of America, China, Japan, Singapore, Thailand, Saudi Arabia, Belgium and
France. Visualize data in the given chart and analyse values of these countries
recorded in 2022.
Origin Country |
Value USD Million |
Value USD % |
South Korea |
60 |
16.7 |
United
Arab Emirates |
53 |
14.8 |
United States |
50 |
14.1 |
China |
46 |
12.8 |
Japan |
24 |
6.8 |
Singapore |
22 |
6.3 |
Thailand |
19 |
5.4 |
Saudi
Arabia |
14 |
4.1 |
Belgium |
11 |
3.1 |
France |
10 |
2.8 |
According to a report, India’s
polypropylene imports were at 1.02 million mt in January-September, up 39% year
on year, while polyethylene imports increased to 2.34 million mt, up 108% on
the year. This surge in polypropylene imports was driven higher by demand from
infrastructure, packaging, durables and automobile sectors. India plans
sizeable capacity additions for polymer through 2024 and beyond.