India PVC market faces ethylene capacity shortage - producer

22 June 2012 07:14  [Source: ICIS news]

SINGAPORE (ICIS)--India’s polyvinyl chloride (PVC) demand continues to outpace supply because of the lack of domestic source for ethylene, a key feedstock for PVC production, an executive from PVC producer Finolex Industries said on Friday.

Total PVC demand in India is estimated at 1.97m tonnes while domestic supply is at 1.3m tonnes, according to Rajesh Deshpande, general manager, marketing at India-based Finolex Industries.

Deshpande was speaking at at the 16th World Chlor-alkali Conference (21/22 June), organised by ICIS and Tecnon OrbiChem.

“Because of the lack of ethylene capacity in India, vinyl deficit is likely to grow unless there is a move either by existing or new players to increase capacity,” Deshpande said.

PVC growth in India to reach 15% in 2012, according to estimates by Finolex.

Domestic demand for PVC pipes is increasing because of the growing housing sector as well as the water and irrigation sector especially within the agriculture industry, said Deshpande.

India’s government is also expected to increase investments in infrastructure that could translate to generate a potential demand of 8.5m tonnes for PVC pipes, he added.

“Investments in wires and cables are also expected to consume around 1m tonnes of PVC in the next five years. Downstream expansion in PVC use is outpacing supply making imports inevitable,” said Deshpande.

India is expected to import 946,000 tonnes of PVC in 2012, compared with 722,000 tonnes in 2011, according to forecasts by Finolex.

Indian PVC makers include Finolex, Reliance, Chemplast, DCW and DCM.

By: Doris de Guzman
+1 713 525 2653

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