Published on March 25, 2014

Traders in this industry are expecting that demand for this sector will strengthen in near future. Prevailing demand for polymer industry is not up to the mark as told by industry sources from the market. Domestic producers seem to have assured prices protection due to import prices for the polymer being lower and demand was not much active. Traders are expecting that if the prevailing prices persist, demand is likely to gain.

Domestic Polymer market in India was quite tight for the current week due to shut down of a major polymer producer for maintanance. Prevailing demand for Ethylene based Polymer is quite strong for the current week as per industry sources. Industry sources added that the current situation of demand and supply is indicating that some producers are likely to hike prices for polymers in next prices revisions. Packaging industry is the main user industry for this sector and growth in packaging industry will result for the growth of polymer industry. Packaging industry consumed 48 percent of Polymer.

Industry analysts said that with the improved technology and hike in deamnd from packaging sector, Polymer industry is likely to see good growth in near future. At present the domestic polymer products industry has grown at 18% and 20% CAGR over the past three and five years, respectively. The major reason behind this robust growth has been the lower cost of polymer products with finer properties and incredible increase in the demand from the end-user industries such as FMCG, pharma, beverages, consumer durables chemical products. Per Capita consumption of polymer in India is around 9 Kg, which is considerably below the global average which is 25 Kg. The consumption is likely to increase in the coming years as the penetration of polymer products is expected to grow more and more due to their lower prices and extended durability.