05 November 2012 11:10 [Source: ICIS news]
BEIJING (ICIS)--Imports in India are increasing at a rapid rate and the country is expected to account for 19% of polyvinyl chloride (PVC) imports globally by 2016, Rajesh Desphande, general manager of Finolex Industries said on Monday.
Global PVC imports are expected to reach 9.1m tonnes in 2016, he added.
Rajesh was speaking at the 1st China International Chlor-Alkali conference organised by the China Chlor-Alkali Industry Association (CCAIA) and its subsidiary CCAON, in Beijing.
“The low import duty for PVC, at 5%, makes India an attractive market to offload surplus,” Rajesh said.
Total apparent PVC demand in India is currently estimated at 2.2m tonnes. Compound annual growth rate of PVC demand in India is around 7% over the last four years, said Rajesh.
Meanwhile, domestic supply stands at 1.25m tonnes. Thus imports will bridge the gap between demand and supply and India is expected to import 950,000 tonnes of PVC by the end of 2012, Rajesh added.
“Imports have gone up by a staggering 50% in the first 6 months of this year,” he said.
Taiwan and South Korea are the major exporting countries to India because they are exempt from anti-dumping duties (ADD), which are applicable to other countries such as US and China, Rajesh said.
PVC pipes are the biggest contributor of PVC consumption. They account for 70% of total consumption and are growing in double digits, which is propelling the growth of PVC industry in India, according to Rajesh.
PVC pipes will continue to be the largest sector for PVC consumption in India as the 12th five-year plan envisages investment of $41bn (€32bn) for water management and $90bn for irrigation sector, Rajesh added.
The low per capita consumption in India, at 1.6kg/capita, compared to that in the US which is around 12 kg/capita, provides a huge potential for PVC, said Rajesh.
Nonetheless, feedstock constraints and high energy costs are limiting domestic capacity expansions.
“Downstream expansions are outpacing supply so imports are here to stay for a couple of years,” Rajesh said.
The 1st China International Chlor-Alkali conference runs from 5-6 November.
($1 = €0.78)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections