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| India Infoline Sector Reports | Thu, 04-Dec-2003 16:32:45 IST (GMT+5:30) | |
| Organic chemicals | ||
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Nitrotoulene This is basically used in the manufacture of rubber chemicals, explosives and photographic chemicals The isomers of nitro toulenes are Para Nitrotoulene(PNT) Ortho Nitrotoulene(ONT) Meta Nitrotoulene(MNT) These are not soluble in water but are soluble in organic solvents. Manufacturing process It involves nitration of toluene by a combination of nitric acid and sulphuric acid. The process is carried at relatively low temperature to avoid formation of unwanted side products. The final output constitutes 55-60% of ONT, 35-40% PNT, and 3-4 % MNT. PNT and ONT are the co-products of the process. About 0.75 ton of Toulene is required to produce 1 ton of nitrotoulene. PNTs and ONTs are twin products produced in the ratio of 1:2. The consumption profile is not commensurate to the production profile. PNT has to be imported while ONT has to be exported due to the difference in the consumption profile. Toluene accounts for about 30% of the total cost of production. The capital cots are very high in terms of the start up costs. Markets ONTs These are used in the manufacture of dyes and account for 65% of the total demand. As much as 20% of the total demand comes from rubber chemicals where they are used as oxidants and accelerators. The demand is expected to be 7,500 ton. The remaining is used in the manufacture of explosives and isocynates that are used as intermediates in the manufacture of polyurethane foams. PNTs Almost 80% of the demand comes from the dyes sector. 20% of the PNT demand comes from pharmaceuticals for the manufacture of drugs and anesthetics. The demand is expected to be around 4,000 ton this year. MNTs The major consumption comes from dyestuffs industry. The industry is skewed geographically as major dyestuff industry is located in the western region. Outlook There is a supply glut in this sector. Exports are also not possible, as the western countries are becoming environmental conscious. They have already banned the usage of the Azo dyes, which contains ONT, now identified as carcinogenic. Integrated projects with mainly downstream products will be able to withstand the recessionary pressures afflicting the industry. Other commonly used organic compounds
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