India implements new standards on LDPE, LLDPE, HDPE

India's Bureau of Indian Standards (BIS) has imposed new mandatory standards on polyethylene (PE) for producers to comply with. The new requirements have labelled under Indian standard IS 7328:2020, titled Specification of Polyethylene Material for Moulding and Extrusion.

The standard will apply to low density polyethylene (LDPE), linear low density polyethylene (LLDPE) and high density polyethylene (HDPE). Petrochemical producers have until 12 October, 180 days from the announcement of the standard on 15 April, to comply with the standards. The only exception to the new standards are goods or articles meant for export.

Overseas importers will be required to obtain a licence from the Foreign Manufacturers Certification Department for a standard mark to verify that their product conforms to the new standards imposed by the BIS.

The new BIS requirements have had mixed reactions from market participants. Some feel that the impact on the import markets will be limited as ample time has been given for importers to comply with the standards. Key producers overseas should not be negatively affected by the introduction of these new standards.

But smaller foreign importers and trading firms may be affected as they sell PE cargoes from various origins that may not comply with these standards. India is facing a shortage of PE offers from key foreign producers as major producers continue to divert cargoes to Europe and the Americas where netbacks are higher on shortages.

In November 2020, the All India Plastics Manufacturers' Association appealed to prime minister Narendra Modi to cool rising prices in the PE markets for LLDPE and HDPE. As part of their appeal, a request was made to end mandatory BIS requirements to alleviate the tight import supplies that India continues to face.

By Matthew Rajendra