20 April 2010 03:26 [Source: ICIS news]
SHANGHAI (ICIS news)--India’s demand for polypropylene (PP) is expected to grow year-on-year at 12-15% in the financial year 2010-11, a source close to an Indian producer said on Tuesday.
“Copolymers and fibres are the segments that will lead this demand growth,” the source said at ChinaPlas exhibition that runs on 19-22 April in Shanghai.
“However, although raffia grade PP is likely to grow at a lower rate, in terms of volumes, it is the biggest and should not be underestimated,” the source added.
Copolymer PP goes into automobiles, household appliances such as washing machines and consumer electronics applications such as television sets, consumption of which is snowballing in ?xml:namespace>
“Each new vehicle that is produced has 40-50kg of PP in it,” he added.
Demand for raffia has also been bolstered by the shortage of natural fibre such as jute for packaging of food grains, fertilisers and cement.
Indian consumption of PP grew at a spectacular 21.2% in the year ended 31 March, 2010 from the previous year to 2.2m tonnes/year. “Of the 400,000 tonnes/year of additional PP that was consumed, most of it was accounted for by imports as domestic supply was restricted by a prolonged shutdown at the Haldia Petrochemicals plant,” the source said.
Total domestic production of PP in 2009-10 was around 2.5m tonnes/year, of which exports constituted 700,000 tonnes. “This caused a huge shortfall which was met by imports,” the source said.
However, the start-up of Indian Oil Corp’s 600,000 tonne/year PP plant at Panipat, Haryana" target="_new" www.icis.com="" haryana?="" panipat,="" at="" plant="" p="" d#http:="">PP plant at Panipat, Haryana, could curtail PP imports in 2010-11, the source added.
Additional reporting by John Richardson
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