US-India plastics trade shows strong growth - SPI

09 February 2009 11:31  [Source: ICIS news]

NEW DELHI (ICIS news)--US exports of plastics-related products to India surged 41% year on year in 2008, while US imports from India rose 26% in the same period, a senior US industry representative said on Monday.

Plastic resin, finished goods and machinery to India amounted to an estimated $550,000 in 2008, while US imports from India during the year totalled around $350,000, said Neil Pratt of the US Society of the Plastics Industry (SPI).

“While one reason for the surge in US plastics exports to India last year was waning demand in the US – a fallout of the spiralling economic meltdown – the main reason was a recognition by US businesses that India presented an immense market opportunity,” said Pratt.

Pratt was speaking to ICIS news on the sidelines of PlastIndia 2009, India’s largest plastics exhibition and conference.

Although China is still the third-largest export market for US plastic resin makers, the Chinese appetite for plastic imports was not as robust in 2008 as in earlier years, said Pratt.

“Also, US producers feel there is a need to diversify the geography of exports to survive the bumps in the road to economic recovery,” he said.

The Indian market is still showing positive growth, despite the dent in demand caused by the global downturn, and the US plastics industry was capitalising on that, he said.

A further reason for eyeing the Indian market was the decline in US plastics exports to Europe, said Pratt.

“US producers have been finding it very difficult complying with the Reach (The EU’s registration, evaluation, authorisation and restriction of chemicals scheme) regulations which are being implemented in Europe, and this has been partly responsible for the decrease in US-Europe bilateral trade in plastics,” Pratt said.

The SPI submitted a letter to US government authorities stating that Reach was erecting trade barriers between the Europe and US plastics industries, he said.

While India presented a potentially strong export market for US plastics manufacturers, makers of Indian plastics, especially resin, have also been targeting the US for exports.

The export volumes of plastics from India to the US have been increasing steadily, with finished products being the most popular.

With Indian producers expanding capacity and their US counterparts consolidating their operations and reducing capacity, it is quite likely that bilateral trade will increase in the coming year, he said.

Events like the India-US Plastics Industry Summit, which was held on 5 February in New Delhi in conjunction with PlastIndia 2009, would provide a further boost to bilateral trade between the two countries, he said.

PlastIndia 2009 started on 4 February and ends on 9 February.

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By: Prema Viswanathan
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