Ballooning Polycarbonate Markets in India
- 26-May-2022 8:40 AM
- Journalist: S. Jayavikraman
The polycarbonate prices are firm globally, forcing Indian imports to remain at a premium to global prices. Consistently high freight rates have contributed to the pressure, and rising energy costs have accelerated the upward trend. In the meantime, rising crude oil prices would raise naphtha prices because naphtha is an essential feedstock to produce Polycarbonate, and an increase in its price would impact.
The prices of Polycarbonate were observed to be hovering around INR 216828/ton-INR 231735/ton Polycarbonate IM Grade Ex-Ahmedabad with a weekly escalation of 1.1% as per Chem Analyst. The market cost pressure supported the trend among Indian traders. In the short term, container shortages and ship blockages at many ports have exacerbated supply shortages.
Owing to port closures in China due to rigorous containment requirements, the availability of Polycarbonate in India has been constrained. In India, downstream purchasers have been more cautious about their inventory levels as demand fundamentals have improved. Several well-known dealers were observed, looking to boost their profit margins, and announced price changes in Polycarbonate in recent weeks. The market grew in response to rising demand for packaged items in the food and beverage sector, as well as the use of rigid clear plastics to replace traditional materials.
It was discovered recently that the usage of various polymers has increased dramatically in recent weeks, resulting in a significant increase in their pricing. Following the return of market activity, demand from the downstream automotive industry has also aggressively rebounded, supporting the recent price rise. In India, demand remained strong, with suppliers reporting that the quantity of material ordered has grown in recent months.
As per Chem Analyst, the Polycarbonate market is expected to grow further due to increased demand from the developing downstream automotive sector and rising investments in the public infrastructures. Moreover, an increase in production and demand for the application of industrial cleaners is expected to be a primary driver for the Indian polycarbonate market.