The year 2004 was a tumultuous year - a year that saw tremendous increase in price of oil and almost all petrochemicals. The second half of this year in particular, witnessed escalating prices that halted a solid growth in nascent stages just as the global economy started on the path to recovery. Further growth of petrochemicals in 2005 will be decided by the stability of feedstock prices. The price increases adversely affected the profitability of plastic converters as they were squeezed at two ends - by the raw material suppliers at one end and the end users at the other.
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* Global economic growth
* The Middle East region : emergence as leading petrochem manufacturing base and consolidation
* The North American and European petrochem manufacturing sector : consolidations and reorganisation
* India : Capacity expansions and estimated polymer consumption
* Estimated polymer consumption in India vis a vis China in 2004

India has grown by about 10% in 2004, but actual consumption is lower when compared to China. With polymer growth rates quite similar in both the countries, India despite its huge population, will always be a distinct second in Asia. It cannot catch with the demand/consumption of plastics in China. However, both these countries will dominate the global markets. They will influence the capacity and supply situations in the future. China, because of its huge demand will continue to outsource polymers from the Middle East. Supply in India on the other hand, is surplus for the last few years and India continues to export almost half a million tons of polymers every year, predominantly to China. ........................CLICK HERE TO READ MORE