Will China's polyurethane market shift to the Indian market?

- Jul 20, 2018 -

Will China's polyurethane market shift to the Indian market?

It is reported that the polyurethane market in the Asia-Pacific region has become the backbone of the demand for regional industries, while China and India are the leaders behind it. China is the leader, and India is a leader. India's polyurethane market is only about 1/10 of China's. What are the future trends of China and India?

India has three major demanders for automotive, electronics and home. The automobile industry accounts for 25% of the country's total revenue and is a pillar industry in India. It has maintained a good growth trend in recent years. The electronics industry is expected to bring considerable profits to the polyurethane market, and as people become aware of the importance of packaging electronic components such as circuits and sensors, they are stimulating the demand for polyurethane in the electronics industry. The growth of disposable income and lifestyle changes in the Indian region have brought benefits to the home furnishing industry. In general, the three major industries in India are creating a quality development environment for polyurethane.

Will the Chinese polyurethane market shift to the Indian market?

With the passage of the GST Act, India will eventually end the "economic separatist" status brought about by a variety of different tax systems, eventually forming a unified consumer market with a population of 1.24 billion, a fully unified tax system.

The outside world often likes to compare India with China, and it is also a BRICS country, and it is also the most potential developing country. So who is the main force of the future market?

China's polyurethane industry has grown against the trend of the financial crisis, but it has become fatigued in the current "new normal." Stable development has consumed “potentials” and will remain in this state for a long time. As more and more foreign companies expand their production capacity in China, China's domestic demand for polyurethane is basically satisfied. From the data of China's import and export in January-August 2016, the import volume of polyurethane raw materials decreased significantly, while the export volume increased slightly. In China's exports to India, the expansion was larger. In terms of aggregated MDI, the cumulative growth in January-August was 34.7% year-on-year; in the AA, the cumulative growth in January-August was 20.7%; in terms of TDI, the cumulative growth in January-August was 86.9. %. It can be seen that the demand for polyurethane in the Indian market is booming.

So, will commercial trade really be transferred from China to India?

India's polyurethane market is only about 1/10 of that of China. Although it is still far apart in proportion, its growth rate is very alarming. In the same way, this also provides room for future expansion and continued growth of the company. Although China's growth in the polyurethane market is not encouraging under the economic slowdown, the transfer of commercial trade to India is only a speculation. India's good demand does not mean that it can replace China's position in a short time.

India has a large demand for polyurethane and is also a labor-intensive country with China. This makes us predict that the import tax will be levied at a high level after the adoption of the GST bill. Will India gradually evolve into a manufacturing power? Or continue to maintain by import. Supply and demand balance?

If we compare the polyurethane market in China and India to two glasses of water, China is a cup of water that is about to be filled, and there is only a little water in the cup of India. What we really want to think about is whether India fills the glass of water by itself or pours Chinese water into the cup of India.

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