(ICIS) -- India posted a 10-12% year-on-year increase in polyethylene (PE) imports in the first eight months of its fiscal year, while it took in 15-17% less of polypropylene (PP) over the same period, industry sources estimated on Friday.
PE imports totalled 600,000 tonnes for the April-to-November period, while PP imports were pegged at 225,000 tonnes, they said. ⌠The volumes of PE and PP imported in the past eight months are much higher than we expected, said a source close to an Indian polymer producer.
For the full financial year ending 31 March 2011, Indian producers were expecting PE imports to post a growth of less than 10% but a 20% decline in PP purchases from abroad, industry sources said. Strong demand for PE drove up the import volumes, especially in PE pipes and flexible packaging segments, an end-user said.
High density PE (HDPE) and linear low density PE (LLDPE) drive the surge in PE imports, but low density PE (LDPE), used mainly in packaging, shrank by 10-12% due to global shortages. Meanwhile, PP imports had been falling as local supply increased, with the start-up of a 600,000 tonne/year PP plant of Indian Oil Corp (IOC) at Panipat in Haryana state, sources said. The company has also started a 650,000 tonne/year PE plant at the same site.