India polymer exports to Pakistan set to rise

Company Strategy, Fibre Intermediates, India, Markets, Polyolefins

By Malini Hariharan

After years of waiting truck movement of petrochemicals from India to Pakistan has started paving the way for Indian companies to boost their exports.

Indian Oil Corp (IOC), which regularly exports polyethylene (PE) and polypropylene (PP) by rail to Pakistan, successfully sent its first consignment to Lahore last week from its petrochemical complex at Panipat, Haryana. Panipat is only about 400km from Lahore, a key polymer market in Pakistan.

IOC hopes to increase export volumes to 8,000-8,500 tonnes/month from 5,000-6,000 tonnes/month at present.

“Exporting via road is more cost-effective. Movement by rail is limited by the availability of wagons; we will now be able to send larger volumes,” says a company source.

The start of road trade represents a big opportunity for Indian producers based in the north. Pakistan’s polyolefins demand, estimated at around 300,000/year for PE and 300,000/year for PP, is entirely met by imports, mainly from the Middle East.

And given India’s surplus in PP, Middle East producers are likely to face a challenge.

India is expected to export around 1m tonnes of PP in fiscal 2011-12. And the surplus will increase further after the commissioning of HPCL Mittal Energy Ltd’s (HMEL) 440,000 tonnes/year plant in March or April 2012. HMEL’s plant is located at Bhatinda, Punjab, near the border and Pakistan will be a main export market, says a source close to the company.

Besides polymers, IOC is also eyeing exports of other petrochemicals to Pakistan. The next product is likely to be purified terphthalic acid (PTA). Pakistan consumes about 500,000 of PTA of which 30% is met by imports.

PREVIOUS POST

India demand slides for PVC and PS

06/02/2012

By Malini Hariharan The last year has been rough for Indian polyvinyl chloride (...

Learn more
NEXT POST

Quick recovery forecast for South Korea

08/02/2012

By Malini Hariharan Analysts are predicting a quick recovery for South Korean pe...

Learn more
More posts
US ethylene glycols: Diversifying away from China may prove impossible
23/10/2019

By John Richardson US BUSINESSES are making arrangements to diversify their supply chains away from ...

Read
The US places heavy bets on LLDPE at a time of demand erosion
21/10/2019

By John Richardson IT IS a remarkably single product-focused strategy given the exposure of linear-l...

Read
China’s real GDP growth below 6% as mono-ethylene glycols margins provide early indicator of depth of downturn
18/10/2019

By John Richardson GLOBAL stock markets will now doubt respond negatively to the news that China’s...

Read
Surge in US polyethylene exports occurs as China growth slows, Asian margins turn negative
16/10/2019

By John Richardson PERHAPS ONE could argue, but I certainly wouldn’t, that in a perfect world the ...

Read
Plastics rubbish and the developing world: Lost petrochemicals demand and the new service-led approach
14/10/2019

By John Richardson IT WAS billed as a liberating product, something that brought a little luxury to ...

Read
Little prospects of genuine US and China deal leave US petrochemicals exports very vulnerable
11/10/2019

As always, this blog post expresses my own personal views and these are not the views of ICIS. Thank...

Read
The new China and the rise of the Millennials transform the petrochemicals business model
06/10/2019

By John Richardson ANYONE who has anything to do with the petrochemicals industry or anything to do ...

Read
Global manufacturing slowdown: Turn to China’s polypropylene market for your explanation
04/10/2019

By John Richardson THEY SADLY still don’t get it. All the clamour yesterday was about declinin...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more