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”, 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.
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.
Source : ChemAnalyst