APIC ’07: India’s polyolefins demand to grow 10%

17 May 2007 12:38  [Source: ICIS news]

TAIPEI (ICIS news)--Polyolefins demand in India is expected to grow by an average of 10% in 2007-2008 in line with the strong growth of its economy, the Chemicals and Petrochemicals Manufacturers’ Association said on Thursday.

 

“(India’s) overall macroeconomic fundamentals are robust, particularly with tangible progress towards fiscal consolidation and a strong balance of payments position," the association said in its report to the Asia Petrochemical Industry Conference (APIC) in Taipei.

 

India is the world’s fourth largest economy in term of purchasing power parity, and the association said that the World Bank and International Monetary Fund have forecasted that India is likely to continue its rapid growth in the fiscal year started April 2007, with a minimum gross domestic product (GDP) growth of 7.3%.

 

“With an upsurge in investment, the outlook is distinctly upbeat,” it said, adding that India’s GDP growth at 9% and 9.2% for the 2005 and 2006 fiscal years had surpassed expectations.

 

Demand for low density polyethylene (LDPE) and linear low density PE (LLDPE) is expected to grow by 9% this year and 12% in 2008, which are lower compared with last year’s growth of 17% for LDPE and 15% for LLDPE.

 

For the same period, annual demand growth for high density PE (HDPE) is expected to be unchanged from last year at 10%, and that for polypropylene (PP) to be 1.5% higher at 9%.

 

India’s polyolefins demand (kt)

	Actual		Projected		% change year on year
	2005	2006	2007	2008	2006	2007	2008
LDPE	215	251	274	298	17%	9%	9%
LLDPE	732	840	941	1,054	15%	12%	12%
HDPE	820	900	991	1,090	10%	10%	10%
PP	1,412	1,517	1,654	1,803	7.5%	9%	9%
Total	3,178	3,509	3,859	4,245	10%	10%	10%

 Source: Chemicals and Petrochemicals Manufacturers Association

By: Chow Bee Lin
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