PRESIDENTS DESK

 

From the President’s Desk

 

Dear Members,
 

This message is received by you during localized lockdowns. The country is in the midst of a patchwork of lockdowns initiated by State Governments. They are nowhere as rigid and sweeping as last year’s nationwide shutdown. Therefore the economic impact will be relatively limited. As the situation remains fluid, it is difficult to gauge the extent of the current slowdown in economic momentum. Not withstanding this, downgrades of existing forecasts of GDP growth for 2021-2022 has started appearing in the media.
 

Economic consequences of the second wave will not be as severe as the initial Covid outbreak both because the lockdowns are not as stringent and because the company have learnt to adapt. On the other hand, a quick recovery once the second wave subsides is unlikely.
 

My conversation with Plastic Processors reveal that currently the customer demand is just 50% of what it was in pre-covid period. It appears that 1st June 2021 onwards the demand will start picking up.
 

The prices of most of the Plastic Polymers are almost 50% to 70% higher than what it was few months back. Moreover many Plastic Polymers are not available in the required quantity. Taking a global view of Plastic Polymers, it is felt that it will take almost 1.5 years for the prices and availability of Plastic Polymers to normalize.
 

The exports of Plastic Products are also down by approx. 35%. The reduction in the exports is compounded by the non-availability of Containers in the required quantity.
 

On 19th May 2021 Organization of Plastic Processors of India participated in the Oral Hearing pertaining to Initiation of Anti-Dumping Investigation concerning imports of "Low Density Polyethylene (LDPE)" from Qatar, Saudi Arabia, Singapore, Thailand, United Arab Emirates and United States of America.

 

With Best Wishes,
 

Mahendra Sanghvi
President