HDPE - IMPORT DATA & PRICING ANALYSIS

JULY 2014


INDEX
Particulars Page No.

Particulars Page No.
JULY REPORT MAIN POINTERS 01 HDPE OFFERS 15

IMPORT SNAPSHOT CAPACITY PROJECTIONS & DEMAND SUPPLY SCENARIO
HDPE INDIA IMPORT SNAPSHOT 02 HDPE CAPACITY PROJECTIONS OF MAJOR PRODUCERS 16
HD/LD/LLD % SHARE IN INDIA PE IMPORTS 03 ETHYLENE CAPACITY PROJECTIONS OF MAJOR PRODUCERS 16
HDPE MONTHLY IMPORTS REGION-WISE BREAKDOWN 03 INDIA HDPE DEMAND SUPPLY 17
INDIA HDPE IMPORTS COUNTRY-WISE BREAKDOWN 04 INDIA ALL PE DEMAND SUPPLY 17
INDIA HDPE DESTINATION PORT-WISE BREAKDOWN 05 INDIA POLYMER DEMAND SUPPLY 18
SOURCE COUNTRY DESTINATION PORT MATRIX JULY 2014 06 INDIA ETHYLENE NET AVAILABILITY 18

PRODUCT PRICING GOI 5 YEAR PLAN CAGR FIGURES 19
HDPE GRADES AVERAGE MONTHLY PRICING 08
HDPE FILM MONTHLY PRICES (MAX/MIN) 09 INDIA IMPORT DUTY STRUCTURE 20
M-o-M AVERAGE PRICES % CHANGE 10
HDPE FILM 1 YEAR PRICE MOVEMENT 11 CRUDE PRICE MOVEMENT & INR V/S USD 21
HDPE FILM 3 YEAR PRICE MOVEMENT 11
ETHYLENE INDIA PRICE MOVEMENT 12 INDIA GDP GROWTH PROJECTIONS 2014-15 22
MAJOR PRODUCTS PRICE TRENDS 13
DISCLAIMER 23
IMPORTANT GLOBAL NEWS 14

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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 1

High-Density Polyethylene (HDPE)

July Report Main Pointers


HDPE import volume increased in the month of July
HDPE grades witnessed a price rise considering monthly averages
HDPE accounted for 35.20% of all PE that was imported into India
80.33% of the HDPE that was imported into India in July was sourced from the Middle East region
Saudi Arabia, Qatar, UAE, Singapore and Kuwait were the largest exporters of HDPE to India
JNPT, Chennai, Mundra, Tuticorin and Kolkata seaports were the largest HDPE import volume handling ports
HDPE was sourced from a total of 20 countries with 27 ports in India being the destination points
Ethylene prices witnessed a net upside in the month of July
Nymex crude and Dated Brent prices saw a net downside
INR witnessed a net depreciation against the USD
Central Board of Excise & Customs notifications on import/export USD exchange rates are as follows:
Dated July 3
rd
2014: 60.10/USD (for imports) & 59.10/USD (for exports)
Dated July 17
th
2014: 60.70/USD (for imports) & 59.70/USD (for exports)

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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 2


Introduction

HDPE is sometimes also referred to as polyethylene high-density (PEHD) and sees high import volume into India given its various applications. It takes
1.75 kilograms of petroleum (in terms of energy and raw materials) to make one kilogram of HDPE. Known for its large strength to density ratio, HDPE
finds applications in Raffia, Blow Moulding, Film, Pipes and Injection Moulding. HDPE is highly preferred as a sheathing material where it provides high
resistance to water penetration. It is very hard, has low coefficient of friction, and is abrasion resistant. Hence, it is used in products and packaging such
as milk jugs, detergent bottles, margarine tubs, garbage containers and water pipes.

HDPE is principally used for the manufacture of high-performance pipe, blow-molded household and industrial bottles, oil bottles, injection-molded food
containers, consumer durables and disposable goods and film goods such as grocery sacks and merchandise bags.

Import Snapshot

Exhibit: HDPE India Import Snapshot























HDPE Volume (MTS) M-o-M Change Value (Rs Crores) M-o-M Change
Jan-13 34253 -8.20% 270 -6.90%
Feb-13 28109 -17.94% 227 -15.93%
Mar-13 31391 11.68% 263 15.86%
Apr-13 29322 -6.59% 249 -5.32%
May-13 31949 8.96% 266 6.83%
Jun-13 33839 5.92% 285 7.14%
Jul-13 29801 -11.93% 266 -6.67%
Aug-13 25050 -15.94% 232 -12.78%
Sep-13 24385 -2.65% 244 5.17%
Oct-13 27253 11.76% 264 8.20%
Nov-13 24461 -10.24% 240 -9.09%
Dec-13 29833 21.96% 287 19.58%
Jan-14 30086 0.85% 293 2.09%
Feb-14 38919 29.36% 382 30.38%
Mar-14 35708 -8.25% 351 -8.12%
Apr-14 36366 1.84% 352 0.28%
May-14 37020 1.80% 360 2.27%
Jun-14 37332 0.84% 360 0.00%
Jul-14 39099 4.73% 386 7.22%
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 3

Source: GoI Import Data

The table gives a snapshot on HDPE India imports in terms of volume imported and monetary value of the imports. The month of July saw HDPE import
level at 39099 MTS which represents a rise of 4.73% M-o-M. The monetary value of HDPE imports in July stood at Rs. 386 crores which represents a
7.22% rise as compared to the preceding month.


Exhibit: HD/LD/LLD % share in India PE imports










Source: GoI Import Data

The chart shows the monthly HD/LD/LLD percentage share in total PE
imported into India.



Exhibit: HDPE monthly imports region-wise breakdown








Source: GoI
Import Data

HDPE Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
APAC 6.06% 6.72% 9.64% 7.00% 11.39% 7.20% 15.56%
EUROPE 1.49% 1.31% 0.99% 1.08% 1.44% 0.99% 1.74%
MIDDLE EAST 91.08% 90.59% 87.81% 89.69% 85.83% 89.47% 80.33%
NORTH AMERICA 1.29% 1.32% 1.49% 1.83% 1.27% 2.27% 2.24%
SOUTH AMERICA 0.08% 0.06% 0.07% 0.39% 0.06% 0.07% 0.13%
Total
100.00% 100.00%
100.00% 100.00% 100.00% 100.00% 100.00%
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 4

The above table lists the region-wise breakdown of imported HDPE. The bulk of HDPE imported by India is sourced from the Middle East region.

Exhibit: India HDPE Imports country-wise breakdown





























Source: GoI Import Data

The table lists out the countries from which HDPE was imported into India in 2014. Saudi Arabia, Qatar, UAE, Singapore and Kuwait were the largest
exporters of HDPE to India.
HDPE (MTS) Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
AUSTRIA 11
BELGIUM 25 124 97 347
BRAZIL 25 25 25 143 23 25 49
CANADA 23 23 138 70 47 47
CHINA 31 5 158 132 94 45 136
FINLAND 2 25 6
FRANCE 15 58 61 61 25
GERMANY 335 279 241 221 129 157 284
HONGKONG 23
INDONESIA 88 35 210 105 67 1 109
IRAN 644 2178 297 198 443 197
JAPAN 366 388 423 391 383 277 398
KOREA 552 693 637 641 455 426 495
KUWAIT 1958 1715 1589 1774 1931 3059 2482
MALAYSIA 102 136 260 34 188 528
NETHERLANDS 11
QATAR 9695 9590 10393 10281 9727 7523 7848
SAUDI ARABIA 13180 17976 15702 15583 15144 17776 13545
SINGAPORE 440 596 882 574 2797 899 3297
SPAIN 50 50 53
SWEDEN 50 99 88 88 167 91 44
TAIWAN 46 51 272 17 51
THAILAND 198 822 726 427 388 853 1069
UAE 1926 3799 3372 4979 4774 4599 7335
USA 364 490 395 596 425 848 831
Total 30086 38919 35708 36366 37020 37332 39099
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 5

Exhibit: India HDPE Destination Port-wise breakdown



Source: GoI Import Data

The table lists out the ports that handled the imported
HDPE in 2014.

JNPT, Chennai, Mundra, Tuticorin and Kolkata seaports
were the largest HDPE import volume handling ports.



HDPE (MTS) Type Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
AHMEDABAD Dry 965 1387 634 607 931 418 482
BALLABHGARH Dry 17 13
BANGALORE Dry 61 82 56 211 160 144 189
BARODA DASHRATH Dry 90 198 256 272 480
BHUSAWAL Dry 1386 1139 891 1881 1485 198
CHENNAI Air 3
CHENNAI Sea 1575 3191 1803 2507 3016 2768 2917
COCHIN Sea 834 833 1701 1422 1212 1424 610
DADRI ALBATROSS Dry 67 151 84 67 84 151
DADRI STARTRACK Dry 67 84
DADRI CGM Dry 49
DELHI Air 12
GOA Sea 116 224 346 373 324 248 431
HARASARU GARI Dry 362 344 315 261 330 277 388
HYDERABAD Air 1
HYDERABAD Dry 492 988 662 980 708 457 465
JNPT Sea 19035 23181 20454 18387 20652 21850 22623
JODHPUR CONCOR Dry 141
KANDLA Sea 124 124
KANPUR JRY Dry 15 15
KOLKATA Air 4
KOLKATA Sea 270 786 1481 749 1020 1272 1588
LONI Dry 48
LUDHIANA Dry 48 64 64 112
MANGALORE Sea 190 197 404 396 198 411 297
MUMBAI Air 2 6
MUNDRA Sea 305 843 1578 2212 2438 1485 3342
NAGPUR Dry 5 10 99
NASHIK Dry 10 9 5 14 5 9 11
PATLI Dry 43 59
PATPARGANJ Dry 2 2 4 10 3
PITHAMPUR Dry 248 215 198 1138 297
REWARI Dry 52 59 18 18 7 35
SANAND Dry 208 192 178
TONDIARPET Dry 36 74 25
TUGHLAKABAD Dry 945 1190 1831 1843 1282 1246 907
TUTICORIN Dry 229 936 513 245 226 324 365
TUTICORIN Sea 2449 2756 2035 3020 1883 3077 2789
VAPI Dry 213 319 298 341 372 379 152
VIZAG Sea 32 32 64 80 40 72
Total 30086 38919 35708 36366 37020 37332 39099
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 6

Exhibit: Source Country Destination Port Matrix July 2014








SOURCE PORT
Volume
(MTS)
Sea
Port
Dry
Port
JNPT 297
KOLKATA 50
BRAZIL HYDERABAD 49
CANADA TUGHLAKABAD 47
BANGALORE 50
JNPT 32
MUNDRA 44
TUTICORIN 10
FINLAND JNPT 6
HARASARU GARI 149
JNPT 88
MUNDRA 23
TUGHLAKABAD 25
JNPT 74
REWARI 35
IRAN JNPT 197
BANGALORE 15
CHENNAI 104
HARASARU GARI 214
JNPT 66
CHENNAI 216
JNPT 279
BELGIUM
CHINA
GERMANY
INDONESIA
JAPAN
KOREA
SOURCE PORT
Volume
(MTS)
Sea
Port
Dry
Port
AHMEDABAD 25
BANGALORE 25
CHENNAI 272
JNPT 1270
TUTICORIN 842
VAPI 50
BARODA DASHRATH 53
CHENNAI 112
JNPT 294
SANAND 70
AHMEDABAD 240
BARODA DASHRATH 416
CHENNAI 1071
COCHIN 313
JNPT 4242
KOLKATA 272
LUDHIANA 112
MUNDRA 848
TUGHLAKABAD 160
VAPI 102
VIZAG 72
KUWAIT
MALAYSIA
QATAR
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 7

Exhibit: Source Country Destination Port Matrix July 2014





Source: GoI Import Data

The tables above represent the source country and destination port matrix which lists out the ports which have received the HDPE imports from the
source countries for the month of July 2014. The type of port and the volume involved are also provided.
SOURCE PORT
Volume
(MTS)
Sea
Port
Dry
Port
AHMEDABAD 146
BANGALORE 74
CHENNAI 507
COCHIN 99
DADRI ALBATROSS 151
DADRI STARTRACK 49
HYDERABAD 383
JNPT 8866
KOLKATA 690
LONI 48
MANGALORE 198
MUNDRA 99
TONDIARPET 25
TUGHLAKABAD 283
TUTICORIN 354
TUTICORIN 1574
CHENNAI 323
JNPT 2090
KOLKATA 510
TUTICORIN 374
SWEDEN TUGHLAKABAD 44
TAIWAN JNPT 51
SAUDI ARABIA
SINGAPORE
SOURCE PORT
Volume
(MTS)
Sea
Port
Dry
Port
AHMEDABAD 38
CHENNAI 73
HARASARU GARI 8
JNPT 733
SANAND 108
TUGHLAKABAD 109
AHMEDABAD 33
BANGALORE 25
BARODA DASHRATH 11
CHENNAI 239
COCHIN 198
GOA 431
HYDERABAD 33
JNPT 3225
KOLKATA 66
MANGALORE 99
MUNDRA 2328
NAGPUR 99
NASHIK 11
PITHAMPUR 297
TUGHLAKABAD 239
HARASARU GARI 18
JNPT 813
THAILAND
UAE
USA
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 8

HDPE India Pricing

Exhibit: HDPE Grades Average Monthly Pricing




























Source: PolymerUpdate Price Archives (Reliance Ex-Hazira Rs/Kg Basic)

The table lists out the average prices observed for the respective HDPE grades. Three month and six month averages are also provided. HDPE grades
witnessed a rise in prices in the month of July.


HDPE Film Blow moulding Injection Pipe Raffia
Jul-14 110.96 111.96 113.16 115.43 111.67
Jun-14 106.96 109.29 109.83 112.43 108.34
May-14 106.96 109.29 109.83 113.43 108.34
Apr-14 106.96 109.29 109.83 113.43 108.34
Mar-14 107.92 109.65 110.79 113.79 113.30
Feb-14 107.96 109.29 110.83 113.43 113.34
Jan-14 105.54 106.87 108.41 111.51 111.42
Dec-13 102.80 103.63 105.67 108.27 108.68
Nov-13 101.71 102.54 104.58 107.18 107.59
Oct-13 101.46 102.29 104.33 106.93 107.34
Sep-13 104.56 105.39 107.43 109.03 110.44
Aug-13 95.96 96.82 99.97 100.48 101.94
Jul-13 95.46 96.32 99.47 99.98 101.44
Jun-13 90.71 91.51 94.61 94.99 96.61
May-13 85.99 86.79 89.89 89.97 91.39
Apr-13 85.80 86.60 89.70 90.05 91.20
Mar-13 87.80 88.60 91.70 92.27 93.20
Feb-13 87.96 88.76 91.86 92.43 93.36
Jan-13 85.64 86.44 89.54 90.11 92.80
3 Month Avg 108.29 110.18 110.94 113.76 109.45
6 Month Avg 107.95 109.80 110.71 113.66 110.56
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 9

Exhibit: HDPE Film Monthly Prices (Max/Min)

























Source: PolymerUpdate Price Archives (Reliance Ex-Hazira Rs/Kg Basic)

The table lists out the maximum and minimum prices that were observed for HDPE Film. HDPE Film prices registered a minimum price of Rs. 108.96 per
Kg and a maximum price of Rs. 111.96 per Kg in the month of July.






HDPE Film Minimum Maximum
Jul-14 108.96 111.96
Jun-14
May-14
Apr-14
Mar-14 106.96 107.96
Feb-14
Jan-14 104.46 105.96
Dec-13 102.46 103.46
Nov-13 100.96 102.46
Oct-13 100.96 101.96
Sep-13 103.96 104.96
Aug-13
Jul-13 94.46 95.96
Jun-13 89.46 91.46
May-13 84.96 86.96
Apr-13 84.96 86.46
Mar-13 86.46 88.96
Feb-13
Jan-13 83.96 86.96
106.96
106.96
87.96
95.96
107.96
106.96
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 10

Exhibit: M-o-M Average Prices % Change

























Source: PolymerUpdate Price Archives (Reliance Ex-Hazira Rs/Kg Basic)

The table lists out the M-o-M changes for the respective HDPE grades considering average monthly prices.





HDPE Film Blow moulding Injection Pipe Raffia
Jul-14 3.74% 2.44% 3.03% 2.67% 3.08%
Jun-14 0.00% 0.00% 0.00% -0.88% 0.00%
May-14 0.00% 0.00% 0.00% 0.00% 0.00%
Apr-14 -0.89% -0.33% -0.87% -0.32% -4.38%
Mar-14 -0.04% 0.33% -0.04% 0.32% -0.04%
Feb-14 2.29% 2.26% 2.23% 1.72% 1.72%
Jan-14 2.67% 3.13% 2.59% 2.99% 2.52%
Dec-13 1.07% 1.06% 1.04% 1.02% 1.01%
Nov-13 0.25% 0.24% 0.24% 0.23% 0.23%
Oct-13 -2.96% -2.94% -2.89% -1.93% -2.81%
Sep-13 8.96% 8.85% 7.46% 8.51% 8.34%
Aug-13 0.52% 0.52% 0.50% 0.50% 0.49%
Jul-13 5.24% 5.26% 5.14% 5.25% 5.00%
Jun-13 5.49% 5.44% 5.25% 5.58% 5.71%
May-13 0.22% 0.22% 0.21% -0.09% 0.21%
Apr-13 -2.28% -2.26% -2.18% -2.41% -2.15%
Mar-13 -0.18% -0.18% -0.17% -0.17% -0.17%
Feb-13 2.71% 2.68% 2.59% 2.57% 0.60%
Jan-13 3.32% 3.26% 3.13% 3.11% 2.75%
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 11


Exhibit: HDPE Film 1 Year Price Movement




Source: PolymerUpdate Price Archives (Reliance Ex-Hazira Rs/Kg
Basic)

The chart shows the price movement for HDPE Film over a one year
time frame.

HDPE Film Price in the beginning of July 2013 = Rs. 94.46 per Kg
HDPE Film Price at the end of July 2014 = Rs. 111.96 per Kg
% Price change in 1 year = 18.53%




Exhibit: HDPE Film 3 Year Price Movement




Source: PolymerUpdate Price Archives (Reliance Ex-Hazira Rs/Kg
Basic)

The above chart shows the price movement for HDPE Film over a
three year time frame.

HDPE Film Price in the beginning of July 2011 = Rs. 64.01 per Kg
HDPE Film Price at the end of July 2014 = Rs. 111.96 per Kg
% Price change in 3 years = 74.91%


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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 12

Exhibit: Ethylene India Price Movement

















Source: PolymerUpdate Price Archives (India CFR USD/MT)

Ethylene price in the beginning of July 2014 = 1450 USD per MT
Ethylene price at the end of July 2014 = 1480 USD per MT
% price change in July 2014 = 2.07%

Ethylene prices witnessed a net upside in the month of July.
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 13

Exhibit: Major Products Price Trends































Source: PolymerUpdate Price Archives [HDPE (Reliance Ex-Hazira Rs/Kg Basic), LDPE (Reliance Ex-Mumbai Panvel Depot Rs/Kg Inclusive of excise duty),
LLDPE (Reliance Ex-Hazira Rs/Kg Basic), PVC (Reliance Ex-Hazira Rs/Kg Basic), PP (Reliance Ex-Hazira Rs/Kg Basic), PS (Ex-Works Rs/Kg Basic), PET
(Reliance Ex-Hazira Rs/Kg Basic), EVA (Reliance Ex-Works Rs/Kg Basic)]

Price Trends HDPE LDPE LLDPE PP PVC PS PET EVA
Jan-13 Up Up Up Up Up Up Up Up
Feb-13 Up Up Up Up Up Up Up Up
Mar-13 Down Up Up Down Up Up Down Up
Apr-13 Down Down Down Down Down No Change Down Down
May-13 Up Up Up Up Down Down No Change Down
Jun-13 Up Up Up Up Up Up Up Up
Jul-13 Up Up Up Up Up Up Up Up
Aug-13 Up Up Up No Change No Change Up Up Down
Sep-13 Up Up Up Up Up Up Up Up
Oct-13 Down Down Down Down Down Down Down Down
Nov-13 Up Down Down Down Down Down Down Up
Dec-13 Up Up Up Up Up No Change No Change Up
Jan-14 Up Up Up Up Up Up No Change Up
Feb-14 Up Up Up Up Up Up Down Up
Mar-14 Up Up No Change Down No Change Up Down Up
Apr-14 Down Up Up Down No Change Down Down Down
May-14 No Change Up Up Up Up Up No Change No Change
Jun-14 No Change Down Down Down Up Down Down Down
Jul-14 Up Up Up Up Up Up Up Down
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 14


The table has been formulated by comparing the average price for the particular month as compared to the average price of the preceding month. If the
value is Up, the average price for the particular month was observed to be higher as compared to the average price for the preceding month. If the
value is Down, the average price for the particular month was observed to be lower as compared to the average price of the preceding month. If the
value is No Change, the average prices of the particular month and the preceding month were observed to be the same. We have considered the India
price movements of the following grades: HDPE Film, Blow Moulding, Injection, Pipe, Raffia; LDPE General, Heavy Duty, Injection, Lamination, Milk
Pouch; LLDPE Extrusion Coating, Film, Injection, Rotomoulding; PP Block Copolymer, BOPP Homopolymer, Injection, Raffia, Random Copolymer, TQ
Film; PVC - Suspension; PET Bottle; PS GPPS, HIPS; EVA.





Important Global News


Lotte Chemical Titan has shut its high density polyethylene (HDPE) plant owing to technical issues. A Polymerupdate source in Malaysia informed
that the plant was shut on July 4, 2014. Its shutdown duration could not be ascertained. Located at Pasir Gudang, Malaysia, the plant has a
production capacity of 120,000 mt/year

Equistar has announced a force majeure on supplies of polyethylene (PE) from two different plants in Texas, USA. A Polymerupdate source in the
US informed that the FM was declared by the company on July 10, 2014. The FM has been attributed to disruptions in feedstock supply. The FM
was declared on PE supplies from the Matagorda and Victoria plants of the company in Texas, US. The Matorda plant has an LDPE capacity of
1.58 billion lbs/year, LLDPE capacity of 1.05 billion lbs/year and HDPE capacity of 1.58 billion lbs/year. The Victoria plant has an HDPE capacity of
600 million lbs/year and LLDPE capacity of 575 million lbs/year

Daelim Industrial is likely to shut its high density polyethylene (HDPE) plant for maintenance turnaround. A Polymerupdate source in South Korea
informed that the plant is planned to be shut in end-September 2014. It is likely to remain off-stream for around one month. Located in Yeosu,
South Korea, the plant has a production capacity of 270,000 mt/year

Pucheng Clean Energy Chemical is in plans to start a new high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) plant. A
Polymerupdate source in China informed that the plant is likely to be started in November 2014. To be located in Shaanxi province, China, the
plant has a production capacity of 300,000 mt/year

Indian Oil Corp (IOC) has restarted a linear low density polyethylene (LLDPE)/high density polyethylene (HDPE) plant. A Polymerupdate source in
India informed that the exact restart schedule of the plant could not be ascertained. It was shut in early July 2014 owing to technical issues.
Located at Panipat in the northern Indian state of Haryana, the plant has a production capacity of 350,000 mt/year

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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 15

Shenhua Baotou Coal Chemical Industry is in plans to shut its linear low density polyethylene/high density polyethylene (LLDPE/HDPE) swing plant
for maintenance turnaround. A Polymerupdate source in China informed that the plant is planned to be shut for maintenance turnaround in
September 2014. It is likely to remain off-stream for around one month. Located in Inner Mongolia, China, the plant has a production capacity of
300,000 mt/year

Sinopec Yangzi Petrochemical has shut a linear low density polyethylene/high density polyethylene (LLDPE/HDPE) swing plant for maintenance
turnaround. A Polymerupdate source in China informed that the plant was shut on July 29, 2014. The plant is likely to remain off-stream for
around one month. Located in Jiangsu province, China, the plant has a production capacity of 200,000 mt/year

Equistar is scheduled to end a force majeure (FM) on supplies of polyethylene (PE) from its plants in Texas, US. A Polymerupdate source in the US
informed that the FM on PE supplies will cease with effect from August 1, 2014. It was declared on July 9, 2014 owing to problems in feedstock
supply. Located at Texas in the US, the Matagorda and Victoria plants have HDPE capacities of 1.53 billion lbs/year and 440 million lbs/year
respectively


Source: PolymerUpdate Market Intelligence




HDPE Offers












The above table lists the HDPE offers along with other details that were captured by our team.

Source: PolymerUpdate Market Intelligence
Offered
Product
Offerred
on Basis
Offer Price
Offer
Unit
Offer from
Country
Offer to
Country
Expected Shipment Offer Date
Film CIF 1655 USD Taiwan India Jul-14 2-Jul-14
Film CIF 1660 USD Taiwan India end July/early August 2014 11-Jul-14
Film CIF 1700 USD Thailand India Aug-14 22-Jul-14
Film CIF 1660 USD Middle East India end August 2014 28-Jul-14
Film CIF 1650 USD Saudi Arabia India end August/early Sptember 2014 28-Jul-14
Injection CIF 1670 USD Saudi Arabia India end August/early Sptember 2014 28-Jul-14
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 16

Capacity Projections & Demand Supply Scenario

Exhibit: HDPE Capacity Projections of the major producers in India











Source: Chemicals & Petrochemicals Manufacturer's Association of India (RIL- Reliance Industries Limited; GAIL- Gas Authority of India Limited; HPL-
Haldia Petrochemicals Limited; IOCL- Indian Oil Corporation Limited; OPAL- ONGC Petro Additions Limited; BPCL- Bharat Petroleum Corporation Limited)


Exhibit: Ethylene Capacity Projections of the major producers in India











Source: Chemicals & Petrochemicals Manufacturer's Association of India (RIL- Reliance Industries Limited; GAIL- Gas Authority of India Limited; HPL-
Haldia Petrochemicals Limited; IOCL- Indian Oil Corporation Limited; OPAL- ONGC Petro Additions Limited; BPCL-Assam GC - Bharat Petroleum
Corporation Limited Assam Gas Cracker)



HDPE Capacity (Kt) 2013-14 2014-15 2015-16 2016-17
RIL 490 490 490 490
GAIL 700 700 700 700
HPL 550 550 550 550
IOCL 475 475 475 475
OPAL --- 720 720 720
BPCL 155 155 155 155
Ethylene Capacity (Kt) 2013-14 2014-15 2015-16 2016-17
RIL 1840 1840 3240 3240
GAIL 1000 1000 1000 1000
HPL 670 670 670 670
IOCL 857 857 857 857
BPCL - Assam GC 220 220 220 220
OPAL 0 1100 1100 1100
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 17

Exhibit: India HDPE Demand Supply













The table provides the India HDPE Demand Supply Snapshot.


Exhibit: India All PE Demand Supply













The table lists out the PE Demand Snapshot for India.




HDPE (Kt) 2010-11 A 2011-12 A 2012-13 A 2013-14 E 2014-15 E 2015-16 E 2016-17 E
HDPE Capacity 1690 1795 1795 1795 1830 2810 2810
LLD/HD Capacity 847 1007 1007 1007 1007 1007 1007
Total Capacity 2537 2802 2802 2802 2837 3817 3817
Production 1216 1503 1501 1486 1621 2521 2606
Imports 330 385 440 410 480 220 230
Exports 55 227 160 115 65 368 500
Apparent Demand 1491 1661 1781 1781 2036 2373 2336
Demand Growth% 10.80% 11.40% 7.22% 0.00% 14.32% 16.55% -1.56%
All PE(Kt) 2010-11 A 2011-12 A 2012-13 A 2013-14 E 2014-15 E 2015-16 E 2016-17 E
Capacity 2826 2965 2980 2980 3065 5115 5565
Production 2072 2519 2457 2485 2654 4488 4996
Imports 970 1060 1217 1179 1313 790 730
Exports 65 251 170 125 77 588 730
Apparent Demand 2977 3328 3504 3539 3890 4690 4996
Demand Growth% 8.40% 11.79% 5.29% 1.00% 9.92% 20.57% 6.52%
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 18

Exhibit: India Polymer Demand Supply













The table lists out the India Polymer Demand Supply scenario.


Exhibit: India Ethylene Net Availability












All ethylene produced in India is used for local consumption and is not exported.





Ethylene (Kt) 2010-11 A 2011-12 A 2012-13 A 2013-14 E 2014-15 E 2015-16 E 2016-17 E
Capacity 3837 3907 3907 4157 5637 7127 7127
Production 3000 3355 3744 3985 5165 6755 6955
Imports 55 15 23 50 25 25 25
Exports 0 0 0 0 0 0 0
Net Availability 3055 3370 3767 4035 5190 6780 6980
Polymers (Kt) 2010-11 A 2011-12 A 2012-13 A 2013-14 E 2014-15 E 2015-16 E 2016-17 E
Capacity 8348 8487 8967 9882 10089 12290 12740
Production 6854 7682 7958 8424 9059 11311 12089
Operating Rate 82% 91% 89% 85% 90% 92% 95%
Imports 2087 2404 2970 2777 2957 2688 2907
Exports 722 1121 1057 1005 1215 1667 1641
Net Trade -1365 -1283 -1913 -1772 -1742 -1021 -1266
Apparent Demand 8219 8965 9871 10196 10801 12332 13355
Demand Growth% 7.40% 9.08% 10.11% 3.29% 5.93% 14.17% 8.30%
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 19

GoI 5 Year Plan CAGR Figures


















Source: GoI 12th 5 Year Plan on Petrochemicals

The table gives the Actual CAGR achieved in the 11th 5 Year Plan (2005/06 2011/12) and the projected CAGR for the 12th 5 year Plan (2011/12
2016/17) and 13th 5 year Plan (2016/17 2021/22) for HDPE and Ethylene. As per government projections, HDPE is likely to enjoy above GDP growth
rates in the 12th and 13th 5 Year plan periods.


5 Year Plan Parameter HDPE Ethylene CAGR
Capacity Creation 9.20% 9.00%
Demand 10.90% 7.00%
Capacity Creation 11.10% 12.90%
Demand 9.20% 12.40%
13th 5 Year Plan
Growth (2016/17 -
2021/22)
Demand 9.00% 0.80%
11th 5 Year Plan
Growth (2005/06 -
2011/12)
12th 5 Year Plan
Growth (2011/12 -
2016/17)
Actual
Projected
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 20

India Import Duty Structure



















Source: Government of India















Products Basic Duty %
Countervailing
Duty (CVD) %
Education Cess
on CVD %
Special
Additional Duty
(SAD) %
TOTAL DUTY %
LDPE 7.5 12 3 4 25.852
LLDPE 7.5 12 3 4 25.852
HDPE 7.5 12 3 4 25.852
PP-Homopolymer 7.5 12 3 4 25.852
PP-Copolymer 7.5 12 3 4 25.852
GPPS 7.5 12 3 4 25.852
HIPS 7.5 12 3 4 25.852
PVC 7.5 12 3 4 25.852
PET 7.5 12 3 4 25.852
INDIA
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 21

Crude Price Movement V/s INR performance against the USD


















Source: PolymerUpdate Market Intelligence, RBI currency reference rates

The graph shows the movement of Dated Brent, Nymex crude and the INR performance against the USD. The Y-axis on the left is USD/barrel rate while
the Y-axis on the right represents the conversion rate.

INR value against the USD in the beginning of July 2014 = 60.14 per USD
INR value against the USD at the end of July 2014 = 60.25 per USD
% net value change in July 2014 = 0.18% (depreciation)

Dated Brent price in the beginning of July 2014 = 112.29 USD per barrel
Dated Brent price at the end of July 2014 = 106.02 USD per barrel
% net price change in July 2014 = -5.58%

Nymex crude price in the beginning of July 2014 = 105.34 USD per barrel
Nymex crude price at the end of July 2014 = 98.17 USD per barrel
% net price change in July 2014 = -6.81%

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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 22

India GDP Growth Projections 2014-15











Data collected from various sources
















Organization GDP Growth
ADB 5.5%
Crisil 6.0%
DBS 5.5%
Goldman Sachs 5.5%
IMF 5.4%
World Bank 5.5%
FICCI 5.3%
NCAER 5.1-5.5%
GoI Economic Survey 5.4-5.9%
Moody's 5.5%
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POLYMERUPDATE
HDPE IMPORT DATA & PRICING ANALYSIS


Contact Details: 344, A to Z Indl. Estate, G. K. Marg, Lower Parel (w), Mumbai 400018, INDIA | Email: info@polymerupdate.com | Tel: +91-22-61772000 (25 lines) | Fax: +91-22-61772025 23



We will be happy to receive any feedback/suggestions on this analysis.

Also, if there are any queries, then please do not hesitate to get in touch with us at info@polymerupdate.com.


Note: The Govt. of India has decided as a policy matter to not disclose the names of the importers/exporters on the ground that revealing such
information would violate commercial confidentiality. These rules are in the nature of subordinate legislation and have the legal force of the Parliament.
Please refer to Notification No. 128/2004-Customs (N.T) Direct Link: http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2k4/csnt128-2k4.htm

The content in this report wherever the source is mentioned as the GoI 12th 5 Year Plan on Petrochemicals is owned by the Planning Commission,
Government of India and its further distribution is strictly forbidden without permission of the Planning Commission, Government of India.
Disclaimer: This analysis makes use of Import data procured from the Indian Customs and is being made available on an as is basis. We have
attempted to refine the raw database by removing records with sweep/reprocessed/off-grade material shipments and records with non-standard units. We
have undertaken our best efforts in refining the database while formulating our statistics; however, customs data is known to include repetitions which are
difficult to verify independently and may have inadvertently got included in this analysis. The figures have been rounded off during some calculations;
hence some totals/subtotals may not match exactly. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness
or correctness of the information/opinions contained herein. It is advisable that all figures be considered as approximate.

In no event will Shalimar Infotech be liable for any expense, loss or damage including, without limitation, indirect or consequential loss or damage, or any
expense, loss or damage whatsoever arising from use, or loss of use, of data, arising out of or in connection with the use of this report. The content of
this report cannot be reproduced without obtaining permission from Shalimar Infotech Pvt. Ltd. All rights reserved.











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