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| India Infoline Sector Reports | Thu, 04-Dec-2003 16:32:44 IST (GMT+5:30) | |
| Organic Chemicals FY00 Review | ||
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Organic Chemicals Update (April – November 1999) Production Trends (in tons)
Source: Indiainfoline Methanol continued to show a negative trend for the month of November and for the first eight months of the April to Nov period. This was because of factors like shut down of Deepak Fertilizers plant for maintenance and absence of commissioning of new plants in the country during this period. Besides lower capacity utilization due to high feed stock prices also adversely affected production. Phenol recorded a negative growth for the month of November. Increase in imports and lower domestic demand from phenol formaldehyde resin segment resulted in lower production by domestic players in this period. However phenol recorded a strong growth of 8.2% yoy in eight month period on account of high demand for phenol derivatives in this period. Price Trends Methanol (Rs/ton)
Source: Indiainfoline Phenol (Rs/ton)
Source: Indiainfoline Prices of methanol have remained steady during the Sept99 to Nov 99 period. Capacity additions and production stabilization in four new plants in the international market resulted in steady international prices. Steady demand from the consuming sector like pharmaceuticals and formaldehyde segment and lower domestic availability prevented domestic producers from raising prices in this period. Phenol prices increased in the international market on account of strong demand from East Asia and tightening of the supplies due to maintenance shut downs. Thus domestic price increased by 10% in this period. Domestic prices of Methanol and Phenol were higher in the months of October and November over last year. Sector Outlook The demand for methanol is unlike to show any significant upturn. Domestic prices are expected to rise keeping in line with the international trends that have seen prices firming up. The domestic players namely GNFC and RCF will benefit by the higher methanol prices Production of phenol in the country will depend on imports by traders and suppliers for meeting the end user industry needs. The rising local demand for phenol products and lower imports would result in higher domestic production in this period. Domestic prices are expected to remain steady on account of flat trends in the international scenario. The profitability of domestic manufacturers is expected to remain depressed in the coming months. Major Event Sudarshan Chemicals has taken the lead among the chemical industry by exploring the concept of offshore development. It has offered its capacities of intermediates used in pigments for toll manufacturing. At present it plans to offer 30 percent of its capacities for toll manufacturing from its plant located in Mahad. It is also offering pilot plants for scale up production of pesticide intermediates. The intensive labour and technical expertise has enabled the company to offer this advantage. Budget expectations Indian Chemical Manufacturers Association (ICMA) has submitted detailed budget memorandum listing out various demands. It is included in the budget special at the following address: |
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