Page 25 - Plastics News June 2021

FeAtures

The Rise and Fall of Plastics

While the Global Plastics production falls in 2020 for first time since 2008 the Indian plastics industry has been
developing fast and is likely to see increasing demands in the post-pandemic era

ver the years Plastic Industry has been growing By contrast, output in Chinawhich currently accounts
Oin business for the wonder material with its wide for a third of global plastics production continued to
numerous applications across the segment. Though the grow by 1.0 percent. It remains largely an importer of
pandemic was able to dent a bit, however its thanks to the specialist plastics, notably for the automotive sector.
PPE’s and the SUP that helped us to survive and overcome North America has increased its plastics output over the
the dangers of the life threatening diseases. past 10 years to 70 million tonnes, PlasticsEurope said.
But its share of overall global production has been eroded
The pandemic has not only killed human but has equally
ruined countries and their businesses as well, According slightly to around 19 percent from 20 percent in 2010. The
to a report Global plastics production declined by 0.3 per automobile sector, one of the biggest buyers of plastics
cent in 2020 as a result of the coronavirus pandemic, only after the packaging and construction industries, saw its
the third time since World War II that output has fallen, consumption plunge by 18 percent or by 900,000 tonnes
the European industry federation Plastics Europe said. in Europe in 2020, PlasticsEurope calculated.
The federation said that factory closures due to
In Europe, plastics output was
down 5.1 per cent last year, coronavirus restrictions and a reduction in stockpiles had
Plastics Europe said in a statement fuelled a sharp rise of eight percent in plastics prices in
Previously, global plastics output the first three months of this year compared with the
fell as a result of the oil crisis in fourth quarter of 2020. And that trend was expected to
1973 and then the financial crisis continue in the immediate future. Over the whole of last
in 2008. year, however, plastics prices had fallen by just under
seven percent in Europe as a result of the drop in oil
But last year, worldwide output prices, PlasticsEurope said.
slipped to 367 million tonnes from
368 million in 2019, a decline of Indian Scenario
0.3 percent, the head of European On the other hand back home the Indian plastics
industry federation Plastics Europe, Eric Quenet, . He industry has been developing fast with market growth
attributed the decline to "the impact of Covid-19 on and diversification in recent years. Latest market reports
the global economy", but the sector suffered much less indicate that the industry is likely to see increasing
than the overall 3.3 percent contraction in the global demands in the post-pandemic era.
economy last year according to IMF figures. While there According to the Directorate General of Commercial
had been expectations of an increase in consumption of Intelligence and Statistics (DGCIS) of India, the Indian
medical plastics due to the pandemic, medical plastics plastics industry hosts more than 2,000 exporters. In FY
only accounted for 1.5-2.0 percent of total volumes, 2020, plastics export of India stood at US$7.045 billion
Quenet noted.
with the highest contribution from plastic raw materials
In Europe, plastics production was down 5.1 percent at at US$2.91 billion, followed by plastic sheets, films and
55 million tonnes last year. And the 27-nation EU now plates at US$1.22 billion, and packaging materials at
accounts for just 15 percent of worldwide production, US$722.47 million.
down from 21 percent in 2010, PlasticsEurope calculated. Meanwhile, there are around 30,000 plastic processing
Europe remains a market that is "structurally in surplus," units of which 85-90% are small and medium-sized
Quenet said. Its export surplus last year amounted to six enterprises, over 7000 recycling units and numerous of
million tonnes, wider than four million tonnes in 2019, end-users, which ensure an effective industry chain in the
and Turkey is currently the biggest customer.
country. These enterprises employ more than 4 million
people.

25 June 2021 Plastics News