Page 9 - Plastics News July 2021

FROM THE EDITOR'S PEN

Ready To Bounce Back

It seems that Petrochem and Plastics industry is gradually coming on track and if situations
continue then perhaps, we might be back on the pre-pandemic level very soon, thanks to
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According to reports though the sector is facing some challenges (and while many of them
are in dilemma for CIF quote) as inadequate availability and rising rates of raw materials
(polymers), increasing shipping freight, container shortage, and inverted duty structure due
to certain free trade agreements however, this has not affected the exports.

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exports as the sector holds huge potential to create jobs.
Given the fact Petrochemical players in India, as a result of improved plastics exports, are
cautiously optimistic that the industry is on track for a gradual recovery even as the south Mr. Rajiv B.Tolat
Asian countries are still in the throes of a deadly second COVID-19 wave. India’s petrochemical
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2022, an industry group executive said, citing moderate impact of the previous year’s sharp
economic slowdown to the sector.
Also According to Shri Mahinder Singh, secretary general of India’s Chemicals and Petrochemicals
Manufacturers’ Association (CPMA), the impact of economic recession on petrochemicals sector
as such , owing to end-market diversity and exposure to more resilient sectors, was moderate
in the last one year as compared with other industries.
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and polyethylene (PE) - have performed well. Demand (for PP and PE) remained at the same
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chemicals is gradually returning and expected to reach the pre-Covid levels during the current
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general meeting that was recently held on 2 July.
Moreover most companies expect to improve output in the next six to 12 months, according
to a joint survey conducted by industry body Federation of Indian Chambers of Commerce &
Industry (FICCI) and Dhruva Advisors in June this year.
After a brief pause in April-May this year, petrochemical demand has resumed its upward trend
in June 2021 and petrochemical capacity is likely to be revived in the near future.

Rajiv B.Tolat
Hon. Editor
publication@aipma.net

9 July 2021 Plastics News