Polycarbonate demand is set to rise significantly, especially in Battery Electric Vehicles (BEVs), where usage is expected to increase 2 to 5 times in the coming years. The market is projected to grow at a CAGR of 3-4 per cent by 2028, driven by its application in EV battery housings, insulation, and lightweight components that improve efficiency. Additionally, polycarbonate benefits from trends in renewable energy, particularly wind energy systems, due to its durability and design flexibility.

India Export Dynamics

  • The India polycarbonate data shows fluctuating monthly import volumes, ranging from 18 million tons (low in June, December 2023) to 35 million tons (peak in August 2024). Since 2023, the top five exporting countries have been South Korea, China, Thailand, the US, and Spain, reflecting their dominance in global trade.
  • This variability reflects seasonal demand patterns and supply adjustments by manufacturers to manage inventory and pricing pressures.

Price Decline

  • Polycarbonate prices dropped steadily from $2.40/kg in January 2023 to $2.07/kg in December 2023, stabilising around $2.10-$2.14/kg during mid-2024.
  • The decline indicates oversupply during high-production months and competitive pressures globally.

Demand Driver Industries

  • Polycarbonate demand is driven by its versatile applications in automotive (including EVs), electronics, construction, medical devices, and emerging sectors like aerospace and drones.                  Source: Alchempro

Deepak Chem Tech's New Polycarbonate Plant

Investment Details

Deepak Chem Tech Ltd (DCTL), a subsidiary of Deepak Nitrite Ltd, has announced an investment of ₹5,000 crore to establish a greenfield polycarbonate manufacturing facility in Dahej, Gujarat. The plant is designed to produce 165,000 metric tonnes annually and is scheduled to commence operations by the fourth quarter of FY2028.

Strategic Partnerships

  • DCTL has partnered with Trinseo to acquire polycarbonate assets in Germany, gaining access to advanced CALIBRE resin technology and trademarks.
  • This collaboration will enhance DCTL's technological capabilities and global market presence.

Backward Integration

  • DCTL's integration of upstream intermediates like phenol and acetone into polycarbonate production will improve cost efficiency and margins.