(plastemart) -- According to BMI, the slow pace of capacity expansion due to the long-term, demographic changes will mean that India will become more reliant on imports for basic chemicals and plastics.
Even when bearing in mind the delays and cancellations, India will have a rapidly expanding petrochemicals industry. The Indian government forecasts domestic polymer demand reaching 11 mln tonnes in 2015, up from 5.8 mln tonnes in 2008. The main concern going forward is India’s ability to meet growing demand.
Over the last quarter BMI has revised the following forecasts/views:
- India is set to add nearly 900,000 tpa of new polypropylene (PP) capacity in 2012, with additional planned new capacity set to come online in 2013.
- By 2016, ethylene capacity will hit 9.41 mln tpa, polyethylene (PE) will reach 5.67 mln tpa and PP will be 5.1 mln tpa.
- Indian consumption of plastics will grow from 8 mln tonnnes in 2009 to 16 mln tons by 2016 and 25 mln tonnes by 2020. Going forward, the country will register a lower rate of growth than the 15-16% seen over the past few years.
MRC