A widely used industrial raw material, High Density Polyethylene or HDPE belongs to the family of polymer products derived petroleum. A high-density version of plastic, HDPE is harder, stronger and slightly heavier compared with Low Density Polyethylene. Known for its versatile qualities HDPE is used extensively in logistics, packaging, transportation etc.

Global Situation

Global production of HDPE is estimated to be around 33 million tons in 2007. Asian region with 10 million ton is expected to contribute 10% of the total global output. Demand from rising economies like China, India etc. have made Asia the main growth area of HDPE consumption.

Indian Situation

The Indian output is estimated to be around 500,000 tons per year with 60-70 percent accounting for polyethylene and the rest polypropylene. Average per capita consumption of polymers in India at 4 kg is rated as quite low compared with global average of 20 kg and 100 kg for OECD countries. Indian demand of polymers is expected to touch 10-12 million tons in 2010 with the country expected to emerge as the third largest consumer after US and China. Reliance, IPCL, Haldia Petrochemicals and GAIL are the leading producers in the country.

Market Situation

Fortunes of all members in polymer family depend upon the price of crude oil and natural gas. Economic growth in major consuming countries such as China and U.S also influences price in domestic market. Variations occur on a monthly basis in domestic polymer prices largely based on changes in the global price for crude oil and natural gas.