Polymer prices in India rise again from 1 April 2021

HDPE up Rs 3,000 - Rs. 4,000; LLDPE up Rs. 2,000; and LDPE up Rs. 7,000

813
Flexible packaging produced for leading brand owners by Vijayneha Polymers. Photo: Vijayneha
Flexible packaging produced for leading brand owners by Vijayneha Polymers. Photo: Vijayneha

At a time when polymer prices have already risen by 40 to 100% in the past nine months, they have been raised again by the larger Indian suppliers from 1 April 2021. Reliance Industries raised the price of high-density polyethylene (HDPE) by Rs 3,000 a ton, the price of linear low-density polyethylene (LLDPE) rates by Rs 2,000 a ton, and of low-density polyethylene (LDPE) by Rs. 7,000 on the first day of the new financial year. Reliance also increased the price of extrusion coating grade LDPE by Rs. 9,000 a ton.

ONGC Petro Additions raised its HDPE polymer price by Rs. 4,000 a ton and LLDPE by Rs 2,000 a ton – also from 1 April 2021. The other significant Indian polymer suppliers include other public sector companies Indian Oil Corporation, Mangalore Refineries and Petrochemicals, Haldia Petrochemicals, and Gas Authority of India.

The polymer price hikes have been less frequent in the last couple of months than in the previous year. There have also been occasional price reductions linked to the fluctuation of crude oil prices. Still, one cannot dismiss some of the disruptions in shipping, such as the Suez canal’s temporary blockage since India has become the largest purchaser of US crude oil. The storms in the Southern US and the global shortage of containers have also constrained polymer imports.

Industry experts expect fewer price hikes for polymers in the coming months since the high demand in March seems to have cooled slightly in April, although it is still robust. Some experts also expect polymer prices to decline after June.

The Indian Plastic Manufacturers Association (IPMA) says that polymers are exported by Indian manufacturers, including the public sector oil companies, at prices lower than those offered to domestic customers. The IPMA has urged the central government to set up a ‘Petrochemical Regulatory Authority’ to supervise the polymer market. However, industry experts say this is unlikely given the government’s lack of activity in previous crises.

The flexible packaging industry that has fared well in the past year of the pandemic is a significant consumer of polymers and has considerable capacity-building investments in the pipeline to be installed from the last quarter of this year.

The impact, resilience, and growth of responsible packaging in a wide region are daily chronicled by Packaging South Asia.

A multi-channel B2B publication and digital platform such as Packaging South Asia.is always aware of the prospect of new beginnings and renewal. Its 16-year-old print monthly, based in New Delhi, India has demonstrated its commitment to progress and growth. The Indian and Asian packaging industries have shown resilience in the face of ongoing challenges over the past three years.

As we present our publishing plan for 2023, India’s real GDP growth for the financial year ending 31 March 2023 will reach 6.3%. Packaging industry growth has exceeded GDP growth even when allowing for inflation in the past three years.

The capacity for flexible film manufacturing in India increased by 33% over the past three years. With orders in place, we expect another 33% capacity addition from 2023 to 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels have grown similarly. The numbers are positive for most of the economies in the region – our platform increasingly reaches and influences these.

Even given the disruptions of supply chains, raw material prices, and the challenge of responsible and sustainable packaging, packaging in all its creative forms and purposes has significant headroom to grow in India and Asia. Our context and coverage engulf the entire packaging supply chain – from concept to shelf and further – to waste collection and recycling. We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers.

In an admittedly fragmented and textured terrain, this is the right time to plan your participation and marketing support communication – in our impactful and highly targeted business platform. Tell us what you need. Speak and write to our editorial and advertising teams! For advertisement ads1@ippgroup.in , for editorial info@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna

Subscribe Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here