According to ChemAnalyst report, “India High Density Polyethylene (HDPE): Plant Capacity, Production, Operating Efficiency, Demand & Supply, Grade, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, India High Density Polyethylene (HDPE) market is anticipated  to grow at a healthy CAGR of 7.25% during the forecast period due to rising demand for HDPE pipes from the country’s developing  agriculture sector further strengthened by Indian government’s initiatives towards adapting sustainable agricultural practices. Moreover, strong demand for HDPE specially formulated Blow Molding grade for manufacturing medical products, amid rising health consciousness will drive the HDPE demand during the forecast period.

Browse Complete Report :  India High Density Polyethylene (HDPE) Price, News and Analysis

HDPE is a relatively stiff polyethylene and possesses useful thermal characteristics with high recycling rate. HDPE containers and woven sacks hold more than 40% share in the domestic high-density polyethylene demand. Due to its desirable properties, HDPE is preferably used for manufacturing cereal box liners, shipping containers, bottles for non-food items, such as shampoo, liquid laundry detergent, household cleaners etc. Increasing demand for liquid detergent and positive transformation in India’s FMCG market is likely to accelerate demand for HDPE containers in the forecast period.

Among all other grades, the Blow Molding grade holds the largest market share due to its desirable characteristics such as high tensile strength and temperature resistance. These attributes make Blow Molded HDPE increasingly preferred in manufacturing bottles used in dairy, medical applications, water, and other packaging sectors. HDPE Pipe Grade is potentially the strongest growing grade in the forecast period owing to its remarkable corrosion resistance. Rising applications for Pipe Grade HDPE in agriculture sector for transporting water and developing channels for drainage and irrigation, will drive the HDPE demand in the forecast period. Moreover, government initiatives like Pradhan Mantri Krishi Sinchai Yojana (PMKSY) towards the development of irrigation sources in agricultural fields will augment the growth in demand of Pipe Grade HDPE.

Outbreak of novel coronavirus caused indefinite halt in country’s production activities and demand downturn hard hit the overall HDPE prices in the final quarter of FY20. HDPE Blow Molding grade price hovered between $965-$968 per MT while that of Pipe grade remained around $1020 per MT in the final quarter of 2020.  However, with ease in lockdown restrictions and hope of quick economic recovery, there has been a quite optimism among the domestic HDPE players. With local manufacturers starting to scale up their plant operating efficiencies from 45 per cent in March to 80 per cent in May, the industry is all set towards recover the incurred losses. In addition, a significant surge in demand for HDPE could be observed after central government procured huge volumes of HDPE bags to combat the shortage of gunny bags to procure and distribute wheat stocks for addressing food security issues amid lockdown.

According to ChemAnalyst report, ““India High Density Polyethylene (HDPE): Plant Capacity, Production, Operating Efficiency, Demand & Supply, Grade, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, key players operating in High Density Polyethylene (HDPE) market are Haldia Petrochemicals Ltd., ONGC Petro additions Ltd., Reliance Industries Limited, Indian Oil Corporation Limited, GAIL India Limited, HPCL-Mittal Energy Limited, Brahmaputra Cracker and Polymers Limited, etc. Huge capacity expansion plans and technological investments will drive the HDPE market growth in India in the years to come. HPCL-Mittal Energy Ltd (HMEL) received environmental clearance in FY19 for addition of polymer unit at its Guru Gobind Singh refinery and Petrochemical complex. The proposed unit will tentatively complete by April 2021 and would house two LLDPE/HDPE swing plants of capacity 400 KTPA each, a 500 KTPA PP plant, a 450 KTPA HDPE unit and a 55 KTPA butane-1 line. Dow, INEOS, SABIC and LyondellBasell Industries Holdings B.V. are some of the international players operating in the India HDPE market.

“As the government of India is strenuously promoting its “Make in India” strategy, with its keen focus on expansion of sectors like agriculture, MSMEs, healthcare and infrastructure, the demand for several grades of HDPE is likely to grow by leaps and bounds. Under the Union Budget 2020-21, the country’s FMCG sector is expected to achieve tremendous growth in the forecast period which will create a vast growth potential for HDPE Blow Molding grade. Moreover, growing awareness for wellness products and changing lifestyles are the key growth drivers for the consumer goods sector. With stronger expansion of country’s agriculture sector and Indian government’s strenuous efforts to enhance surplus water availability in the agricultural fields by encouraging farmers to make use of advanced irrigation technologies, a strong boost in demand for HDPE pipes is expected. Moreover, domestic refiners actively planning to expand their polyolefins footprints and increasing Foreign Direct Investments (FDI) will drive the growth of HDPE market in the years to come. HDPE being a crucial part of the industrial value chain, indicates a consistent growth potential in the polyethylene industry in the next five years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.

Source: ChemAnalyst

Votes: 0
E-mail me when people leave their comments –

ChemAnalyst

You need to be a member of Global Risk Community to add comments!

Join Global Risk Community

    About Us

    The GlobalRisk Community is a thriving community of risk managers and associated service providers. Our purpose is to foster business, networking and educational explorations among members. Our goal is to be the worlds premier Risk forum and contribute to better understanding of the complex world of risk.

    Business Partners

    For companies wanting to create a greater visibility for their products and services among their prospects in the Risk market: Send your business partnership request by filling in the form here!

lead