Plasticisers drive phthalic anhydride demand in India

Phthalic anhydride (PAN) consumption in India is dominated by the plasticisers sector, according to a new market research report from GlobalData. In 2017, plasticisers accounted for 74.3% of PAN consumption in the country due to growing demand for polyvinyl chloride (PVC) in the construction industry and automotive industries, the report said.

“Plasticisers contribute largely as end use application of phthalic anhydride in India due to growth of the construction and packaging industry. Phthalic anhydride is also extensively used in the production of phthalate plasticisers for making PVC to a large extent in the automotive and electrical & electronics industries,” informed Mr. Dayanand Kharade, Petrochemicals Analyst at GlobalData.

The report – ‘Phthalic anhydride industry outlook in India to 2022’ reveals that Lurgi-BASF PAN technology is the dominant technology used for PAN production, accounting for 88.5% of the total installed PAN capacity of 0.344-mtpa in the country.

The largest PAN plants in India in 2017 were operated by IG Petrochemicals (Taloja), Thirumalai Chemicals (Ranipet), Asian Paints (Ankleshwar) and SI Group India (Navi Mumbai).

The main sectors that consume PAN in India are plasticisers, alkyd resins and unsaturated polyester resins (UPR). In 2017, these sectors accounted for almost 96.3% of the PAN demand in the country. The average price of PAN, which was $980.7 per tonne in 2017, is expected to increase at a CAGR of 3.2% to $1148 per tonne in 2022.

During the period from 2008 to 2017, India was a net importer of PAN. Imports as percentage of demand rose from 18.5% in 2008 to 35.6% in 2017. According to GlobalData forecasts, imports as percentage of demand is expected to decrease to 19.2% in 2022.