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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