The new report by Procurement Resource, a global procurement research and consulting firm, looks in-depth into the costs involved in the production of LDPE. The comprehensive report analyses the production cost of the material, covering the raw material costs and co-product credit, equipment costs, land and site costs, labour wages, maintenance costs, financing charges, and the depreciation costs. The extensive study describes the step wise consumption of material and utilities along with a detailed process flow diagram. The report also assesses the latest developments within the LDPE industry that might influence the costs of production, looking into the capacity expansions, plant turnarounds, and mergers, acquisitions, and investments.
LDPE or low density polyethylene is a thermoplastic produced from a monomer ethylene. It does not react at room temperatures, except with strong oxidising agents. It can bear temperatures of up to 80 degrees Celsius and 90 degrees Celsius for a short period of time. In texture, it is quite flexible and robust. LDPE is widely used in the manufacturing of various containers, dispensing bottles, wash bottles, tubing, plastic parts for computer components, and various moulded laboratory equipment. Its most common use is in plastic bags.
In India, the LDPE market has grown at a considerable rate during 2015-2019 and was anticipated to maintain the pace of growth in the coming years. But this growth has been obstructed due to the COVID-19 pandemic, which has caused the unforeseen disruptions in the supply chain. However, the market is expected to recover once the lockdown restrictions are eased. A large volume of LDPE, about 30%, is produced in India annually, and the highest amount goes for packaging films. The transition towards LDPE films over shrink films is also expected to support the industry growth.
While the global market growth was hindered over the past two years due to its poor heat resistance, the market is expected to rebound as the materials are reinforced by glass. It is also available at a low cost, which has proved to be a boon for the global LDPE market. These factors are expected to influence the production cost for LDPE.
The production cost report by Procurement Resource assesses the production of LDPE via polymerisation. In this process, ethylene is converted into polyethylene within a reaction vessel at a temperature of 320-degree Celsius. The polyethylene, thus obtained, is then mixed with additives to attain molten polyethylene. The molten polyethylene is cooled and cut into pellets to give LDPE.
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