Page 28 - Plastics News March 2017
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FEATURES




          In December 2016, major Indian producer RIL spearheaded   tonnes, based on data from the India’s Department  of
          the PE exports due to a severely weakened domestic    Commerce.
          demand after the government’s surprise demonetisation   LLDPE imports for the period had fallen 26% from the same
          of the rupee (Rs) 500 and Rs1,000 notes, which accounted   period in 2015, based on data from India’s Department
          for more than 80% of the money in circulation at that time.
                                                                of Commerce. There is a strong likelihood that imports
          Weak  local  demand  presented  a  good  opportunity  to   of these polymers will substantially fall when the new
          venture into global markets to establish a customer base   domestic capacities start up, market sources said.
          for PE when its new facilities start commercial production   In recent weeks, LLDPE and HDPE import prices into India
          in  2017,  company  sources  said.  RIL  sent  in  December   increased modestly as supply is ample in the domestic
          PE product from its existing facilities for customers in   market.
          different markets to try out, so that exports can start as
          soon as on-spec production is achieved at the new units,   Moreover, additional price discounts for bulk bookings and
          they said.                                            cash purchases also rendered domestic product attractive
                                                                amid the ongoing cash crunch, market sources said.
          Another local PE producer, GAIL India Ltd (GAIL), had also
          forayed into exports for the first time late last year, with a   Indian traders that were previously involved in importing
          few consignments sent to southeast Asia, where netbacks   PE  into  India  and  selling  locally  are  now  eyeing  other
          are better, market sources said.                      markets.

          The company’s  400,000  tonne/year LLDPE/HDPE swing
          facility resumed operations in January 2017, after more
          than a month of shutdown following technical issues at
          the unit’s reactor. The plant was commissioned in March
          last year.

          Meanwhile, new PE producer oPaL is also keen to export
          to China and southeast Asia when it is able to establish
          distribution channels sometime in the second half of
          2017, a company source said. Buyers in India have turned
          cautious about imports, particularly for HDPE and LLDPE
          grades. In April to November 2016 – the first eight months
          of India’s current fiscal year – total LLDPE imports stood
          at 326,400 tonnes, while HDPE imports were at 469,700

           The oil and gas sector is among the six core industries in India and plays a major role in influencing decision making
           for all the other important sections of the economy. India is expected to be one of the largest contributors to non-
           OECD petroleum consumption growth globally. Domestic refiners’ import of crude oil increased 9.1 per cent year-
           on-year to around 18.81 million metric tons during August 2016. Total fuel consumption is expected to grow around
           5-6 per cent in FY 2016-17 and thereafter, while consumption of gasoline is expected to grow around 9-10 per cent
           over the medium term, supported by robust passenger vehicle sales amid low crude oil prices.2

           India is the fourth-largest Liquefied Natural Gas (LNG) importer after Japan, South Korea and China, and accounts
           for 5.8 per cent of the total global trade.3Domestic LNG demand is expected to grow at a CAGR of 16.89 per cent
           to 306.54 MMSCMD by 2021 from 64 MMSCMD in 2015. The country's gas production is expected to touch 90 Billion
           Cubic Metres (BCM) in 2040 from 35 BCM in 2013. Gas pipeline infrastructure in the country stood at 15,808 km in
           December 2015. State-owned oil and Natural Gas Corporation (oNGC) dominates the upstream segment (exploration
           and production), producing around 22.37 MT of crude oil, which is approximately 60.5 per cent of the country’s
           36.95 MT oil output, as of March 2016.



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