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.

Also, take a look on India’s imports of polyolefins reported from January to July in 2023.

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.

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.