India’s HDPE film prices may drop on plastic bag ban in New Delhi

31 October 2012 09:04  [Source: ICIS news]

SINGAPORE (ICIS)--Prices of high density polyethylene (HDPE) film in India maybe under downward pressure, as its key downstream plastic bags will be banned in New Delhi from 22 December, market sources said on Wednesday.

The New Delhi government announced the effective date of the complete ban on the manufacture, sale and storage of plastic bags in the city earlier in the week.

Previously on 11 September, the government made a decision to impose such a blanket ban, regardless of thickness. 

HDPE film resins, which are the key raw material for the manufacture of plastic bags, may face a significant decrease in demand.

“This will curtail the already shrinking demand for HDPE film resins. Over the past few years, the Indian government has gradually imposed partial and complete bans of shopping bags across the various cities, hurting the resins’ demand,” a local converter said.

On 31 October, Gulf Cooperation Council (GCC)-originated cargoes were offered at $1,350-1,360/tonne (€1,040-1,047/tonne) CFR (cost & freight) Mumbai, while Iranian material were booked at $1,310/tonne CFR Mumbai, according to local players.

In the fiscal year ending March 2012, India’s consumption of HDPE resins was about 1.6m tonnes, up by 5-6% year on year, while in the period of January 2012 to August 2012, demand of HDPE resins improved by 10%, market sources said.

($1 = €0.77)

By: Ong Sheau Ling
+65 6780 4359

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