With domestic capacity exceeding demand, India has been a net exporter of commodity polymers for the last 4-5 years. This situation will continue for atleast the next 3 years, particularly for LLDPE, HDPE, PP and Polystyrene. However, there is a need to import some polymers like LDPE and EVA as well as some specialty products. These specialty products are from the group of polymers that infact have an excessive capacity. However, the domestic requirement of these grades is not large enough for the local producers to manufacture them in cost-effective manner.

According to our data bank, the overall trade balance in 2004 was as follows

Several larger and well recognized international suppliers with marketing offices in India like Basell, Borouge, Exxon Mobil, Sabic etc. are fighting to get some market share from almost 465 KT imports of commodity polymers. The situation in the next 2-3 years will not change significantly since an increase in capacity of LDPE, PP and PVC is on the cards. EVA plant of RIL (erstwhile Nocil), restarted only in December 2004, will have much higher production from this year.

Polymer business is very dynamic- prices fluctuate violently due to dependence on price sensitive oil and other feedstock materials. Generally price variation of about US$20-25 is quite common at any time of the year. The larger consumers, who have excellent contact with polymer suppliers always tend to command a lower price.