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
+65 6780 4359



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