India's high density polyethylene (HDPE) market is poised for a slight surplus in 2015 with new plants coming on stream in two months, and the excess would likely be shipped out to China, as per industry sources at Chinaplas 2015 conference in Platts.
India's 2014 HDPE production was pegged at 1.264 mln mt, while imports were pegged at 0.569 mln mt, according to India's Chemicals & Petrochemicals Manufacturers' Association.
The total supply was more or less in line with India's demand for the product. 2015 will see new projects coming on stream in India. These will include ONGC Petro additions' two 360,000 tpa high density polyethylene/linear low density polyethylene swing plants and a standalone HDPE plant with a capacity of 340,000 tpa at the Dahej Special Economic Zone in Gujarat. Both new plants will come online by July. In addition, there is Brahmaputra Cracker and Polymer Limited's 220,000 tpa HDPE/LLDPE swing facility and GAIL's 400,000 tpa polyethylene plant at its Pata facility in Uttar Pradesh, which are expected to start up by July.
India's HDPE production will increase with new plant startups, possibly leading to a slight surplus this year, possibly to the tune of less than 16,000 mt of HDPE , and 10,000 mt for linear low density polyethylene. Market sources said HDPE and LLDPE prices in India may fall if there is indeed a surplus, or some product might be exported to China or Southeast Asia instead.
28-May-15 
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