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Demand of some polyethylene and polypropylene grades, used in single-use plastics, may rise in the longer run in India following a ban on single-use plastics by the local government, sources said.

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The Indian government banned the manufacture, distribution, sale and use of single-use plastic products, including polyethylene bags of less than 75 microns, on July 1.

The rules further state that such plastic materials will have to move to above 125 microns after Dec. 31. Some of the products that would be affected are plastic carry bags, cutlery, packaging material, and straws.

These products are usually made from polyethylene, polypropylene, and polystyrene, while some use polyvinyl chloride, collectively known as polymers.

"This could actually lead to the use of thicker plastic material, which will actually add tonnage to the country's demand in the long term," a domestic polymers producer said.

Microns are a measure of thickness of a plastic product, and the higher the microns, the easier it is to recycle or reuse the plastic products.

Moving to higher micron plastics would mean additional requirements of raw materials like polyethylene and polypropylene. In some cases, plastic product makers could start using calcium carbonate fillers, which are a cheap substitute for polymer and increases the weight of a plastic product.

The commonly used single-use plastics are polyethylene bags or carry bags of 10-50 microns, of which, the most used are of 25-35 microns. These bags are made from high-density polyethylene films.

"This is beneficial for HDPE producers, as there could be more demand for HDPE film once plastics move to higher microns," a polyethylene producer said.

HDPE film producers had lowered their production earlier in anticipation of the ban, which led to more imports in the last few months, a polymers trader said.

However, in the last 15-20 days, overall demand, including imports, has slowed down because of enough purchasing and people taking a step back from big purchases for more clarity on rules, the trader added.

The nationwide ban is going strong and eventually additional requirements of HDPE film will lead to more import, as domestic producers have lowered their output, he added.

The ban has brought some confusion in the market with regard to the implementation of the new rules and the products on which they will be applied.

For example, stretch PE films can't go up to 125 microns and the feedback has been given to the authorities, the PE producer said, adding that there could be some clarity on the subject soon.

In textile packaging, where plastic is made of biaxially oriented polypropylene, some state authorities have been enforcing the ban even as industry players believe the rules do not apply to them, a polypropylene source said.

However, many of the textile packaging plastic makers are now complying with the rules, irrespective of their implementation, he added.

Some market participants believe the implementation of a nationwide ban on single-use plastics is difficult and unviable, as there are no economical alternatives. Moving to higher microns or higher-grade products would lead to a rise in cost for plastic manufacturers, as more raw materials would be needed.

"The more critical issue is that usage [of carry bags, plastic cutlery, etc.,] is not going anywhere, and in the absence of cost-effective alternatives, it won't be that easy to phase out single-use plastics. It could take at least four-five years for us to gauge the actual impact of the ban," a producer said.

Cigarette wrappers also contain biaxially oriented polypropylene and finding an alternative to that is currently difficult, a polypropylene trader said.

"The single-use plastic ban has added to the weak sentiment in PE and PP, more so in the former. It is likely to be temporary as things will get better with clarity from state government officials on implementation," the polypropylene trader said.

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