The demand for DOP and DBP is moderate while the prices for the plasticizers have been stable across various trading hubs in India. The website spoke to key stakeholders for DOP and DBP in the country, mainly manufacturers, end- users and traders in order to understand the main driving forces impacting the market.
The market share for DOP and DBP in India is mainly dominated by domestic manufactures, mostly the KLJ group, which has installed a 12,000 metric tonne per month capacity for DOP and DBP. The website spoke to an official from KLJ group who confirmed that the demand for the plasticizers is sluggish at the moment primarily due to the year end closing, whereby buyers refrain from bulk purchases.
On the other hand, comments from Rachna Plasticizers, another domestic manufacturer with a DOP and DBP manufacturing capacity of 1,200 metric tonne per month, painted a completely different market trend when an official reported a strong demand for the chemical in Indian market. "The sales for the plasticizers are strong at the moment so much so that we can't cater to the existing demand with the present stock inventory. When enquired about the cyclical demand for the plasticizers, the official added that the demand for the chemical usually peaks around December and January and troughs are noted during the month of May".
Delhi and Mumbai based traders agreed that the demand for DOP and DBP are dull at the moment and there is a general market expectation that the demand will most likely gain momentum at the end of the financial year or after elections. Until then, buyers are adopting a need based procurement strategy for the chemicals.
DOP and DBP are majorly used as plasticizers in PVC resins for fabricating flexible vinyl products.
The websites spoke to end-user industries, mainly PVC resins manufacturers and understood that the demand for PVC resins is sluggish at the moment and it isn't expected to gain weight until the manufacturing sectors like automobiles, adhesive, etc pick up pace in the Indian economy.
At present in the Mumbai market, DOP and DBP are being sold at Rs. 124 per kg and Rs. 114 per kg, respectively in barrels exclusive of all taxes.
Overall, its safe to say that the demand for plasticizers are sluggish at the moment due to a lull in demand from end- user industries, it will be interesting to note when and how the demand picks up from the end -user industries in India.
By Ntasha Berry (ntasha.berry@indianpetro.com) Mirza Zahid (mirza.zahid@indianpetrochem.com)
The market share for DOP and DBP in India is mainly dominated by domestic manufactures, mostly the KLJ group, which has installed a 12,000 metric tonne per month capacity for DOP and DBP. The website spoke to an official from KLJ group who confirmed that the demand for the plasticizers is sluggish at the moment primarily due to the year end closing, whereby buyers refrain from bulk purchases.
On the other hand, comments from Rachna Plasticizers, another domestic manufacturer with a DOP and DBP manufacturing capacity of 1,200 metric tonne per month, painted a completely different market trend when an official reported a strong demand for the chemical in Indian market. "The sales for the plasticizers are strong at the moment so much so that we can't cater to the existing demand with the present stock inventory. When enquired about the cyclical demand for the plasticizers, the official added that the demand for the chemical usually peaks around December and January and troughs are noted during the month of May".
Delhi and Mumbai based traders agreed that the demand for DOP and DBP are dull at the moment and there is a general market expectation that the demand will most likely gain momentum at the end of the financial year or after elections. Until then, buyers are adopting a need based procurement strategy for the chemicals.
DOP and DBP are majorly used as plasticizers in PVC resins for fabricating flexible vinyl products.
The websites spoke to end-user industries, mainly PVC resins manufacturers and understood that the demand for PVC resins is sluggish at the moment and it isn't expected to gain weight until the manufacturing sectors like automobiles, adhesive, etc pick up pace in the Indian economy.
At present in the Mumbai market, DOP and DBP are being sold at Rs. 124 per kg and Rs. 114 per kg, respectively in barrels exclusive of all taxes.
Overall, its safe to say that the demand for plasticizers are sluggish at the moment due to a lull in demand from end- user industries, it will be interesting to note when and how the demand picks up from the end -user industries in India.
By Ntasha Berry (ntasha.berry@indianpetro.com) Mirza Zahid (mirza.zahid@indianpetrochem.com)
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