Plexconcil Unveils In-Depth Analysis of Export Trends for Nov 2023

Plexconcil, the Plastic Export Promotion Council, under the aegis of the Department of Commerce, Government of India, has released a detailed report offering a comprehensive analysis of India's plastic export trends for November 2023. The study based on data from the Ministry of Commerce & Industry, Government of India indicates that for November 2023 plastics exports witnessed a notable increase across key categories like Floorcoverings, leathercloth & laminates, FRP & Composites, Human hair & related products, medical items of plastics, etc. Verticals like Consumer & houseware products, Cordage, fishnets & monofilaments, Plastic raw materials, etc., decreased exports compared to November 2022.

Overview of Overall Exports

In November 2023, India recorded merchandise exports totalling USD 33.9 billion, reflecting a marginal decline of 2.8% compared to the same period in 2022. The cumulative value of merchandise exports from April to November 2023 stood at USD 278.8 billion, indicating a 6.5% dip from last year's corresponding period.

Exhibit 1: Trend in overall merchandise exports from India

Analysis of Plastics Export Trends

The plastic sector, a crucial component of India's export portfolio, declined in November 2023. Plastic exports amounted to USD 892 million, a 5.6% decrease from November 2022. The cumulative value of plastics exports from April to November 2023 was USD 7,405 million, registering a 9.4% decline compared to the same period in the previous year.

In November 2023, the performance varied across different product panels. Positive export growth was observed in panels such as FRP and composites, Medical items of plastics, floor coverings, leathercloth & laminates, Packaging items (both flexible and rigid), and Human hair & related products. Conversely, other panels faced challenges in achieving growth, including Plastic raw materials, Consumer & houseware products, Cordage, fishnets & monofilaments, Plastic films and sheets, FIBC, Woven sacks, Woven fabrics, Tarpaulin, Plastic pipes & fittings, Writing instruments & stationery, and Miscellaneous products & items.

Exhibit 2: Trend in Plastics Export by India (USD Million)

Mr Hemant Minocha, Chairman of Plexconcil, said, “October 2023 saw a 9.4% jump (Y-o-Y) in overall plastics exported from India. While we have witnessed a minor decline in November, I am positive about the bullish demand for Indian plastics in the international markets. We are particularly bullish about the South American continent, where we recently organised a strategic Buyer-Seller Meet across Costa Rica, Guatemala, El Salvador, and Guatemala. A contingent of over 100 exporters from India successfully engaged with over 50 companies to discuss a fruitful way forward, enabling us to create export opportunities to over USD 100 million in the next four years. As we advance, we would closely identify opportunities across multiple countries to help boost India’s overall exports.”

In November 2023, the Indian export landscape witnessed diverse trends across various product categories. Consumer & houseware products faced a substantial decline of 14.8%, primarily attributed to reduced sales of Household & toilet articles made of plastics, Plastic moulded suitcases (42021220), Handbags, and Toothbrushes. Notably, India experienced diminished exports of Plastic moulded suitcases and Handbags to the European Union and Toothbrushes to the ASEAN region. Cordage, fishnets & monofilaments exports encountered a notable decline of 15.2% in November 2023 due to decreased sales of Monofilaments of any cross-sectional dimension > 1 mm of plastics and Twine, cordage, ropes, and cables of polyethene or polypropylene. In contrast, the export of FIBC, woven sacks, woven fabrics, & tarpaulin exhibited resilience, with a marginal decline of 2.9%. This was primarily due to reduced sales of Flexible intermediate bulk containers, particularly to the United States of America. The average price realisations for Flexible intermediate bulk containers have seen a 17% decrease throughout the year.

Mr Sribash Dasmohapatra, Executive Director, Plexconcil, said, “Additionally, the Indian contingent in the recently concluded ARABPLAST in Dubai was one of the biggest in recent years. The Middle East imported USD 38 billion of plastics in 2022, with India capturing a 4.7% share (USD 1.7 billion). This data clearly highlights the immense growth potential for Indian plastics in the region. As the apex body for the Indian plastics export industry, PLEXCONCIL is committed to helping our members tap into this potential. PLEXCONCIL organised RBSM with over 100 international buyers in our bid to support domestic industries and encourage a greater number of domestic processors into the export fold and benefit from increasing global opportunities.”

Export of Floor coverings, leather cloth & laminates surged by an impressive 18.4% in November 2023, driven by higher sales of Floorcoverings of PVC and Textile fabrics impregnated, coated, covered, or laminated with plastics to the United States of America. The category of FRP and composites experienced a remarkable surge, registering substantial growth of 62.8% during November 2023. This surge can be attributed to elevated sales across all products within this category, especially Articles of plastics and articles of other materials from 3901 to 3914.

Human hair & related products saw a 25.0% increase in exports in November 2023 due to higher sales of Human hair, dressed, thinned, and bleached to China. However, the average price realizations for this human hair product segment have fallen by 12% throughout the year. Medical items of plastics continued to perform well, with exports increasing by 23% in November 2023, driven by higher sales of Spectacle lenses. This category contributed immensely to the positive growth in the export sector, with India reporting its highest-ever monthly export as well as import of Spectacle lenses in November 2023.

On the contrary, exports of Miscellaneous products & items plummeted by 48.5% in November 2023 due to lower shipments of Optical fibers, optical fiber bundles, and cables. Packaging items, both flexible and rigid, experienced a modest increase of 1.9%, fueled by higher sales of Boxes, cases, crates, and similar articles for the conveyance or packaging of goods, made of plastics, and Sacks and bags of plastics. India predominantly exports Packaging items - flexible, rigid to North America and Europe. The export of Plastic films & sheets saw a decline of 2.3% in November 2023, driven by reduced sales of Films and sheets of polycarbonates, Films and sheets of polyethylene terephthalate, and Films and Sheets of other polyesters. Nonetheless, Indian exporters of plastic films and sheets have indicated signs of improvement in the export market since the end of the June 2023 quarter, with demand for BOPP starting to recover.

Export of Plastic pipes & fittings decreased by 8.5% due to lower sales of rigid tubes and pipes of polyethylene to Canada and the United States of America, and Fittings like joints, elbows, and flanges of plastics for pipes to several export destinations. Plastics raw materials exports declined by 14.5% in November 2023, attributed to lower sales of Polypropylene, Polytetrafluoroethylene, and Polyethylene terephthalate. The average price realizations for Polypropylene and Polyethylene terephthalate have fallen by 15-20% throughout the year, positioning India among the top-5 exporters of Polytetrafluoroethylene and Polyethylene terephthalate resin globally. Lastly, the export of Writing instruments & stationery decreased by 7.0% in November 2023 due to decreased sales of Ballpoint pens to Congo DRC, Vietnam, and the United States of America.