1 Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
Indian Aromatics Markets Current Scenario and Future Prospects
| NIKUNJ PAREKH | KEMPAR ENERGY, SINGAPORE
KUNJAL SYNERGIES, INDIA
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INDIA – MACRO ECONOMY UPDATE
AGENDA
INDIAN AROMATICS MARKET OVERVIEW
ABOUT KUNJAL GROUP
Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
SELLING TO INDIA : TAX AND LOGISTICS
THE WAY FORWARD
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INDIA – MACRO ECONOMY UPDATE
3 Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
SDS - India’s economy has been one of the fast growing economies of
the world. It is the third largest economy of the world in terms of
purchasing power parity.
- From 2004 to 2011, India’s quarterly GDP growth rate averaged
over 8%.
- Growth has been subdued in the years 2012-2013 and 2013-
2014 due to challenges in the Global Economy and Particularly
Policy Paralysis due to the Central Government
- 2012 GDP Growth : 4.5% | 2013 : 4.7%
- Signs of Revival in GDP Growth and Industrial Activity with the
formation of New Government - Q1 FY 2014 (Apr-June) GDP
Growth : 5.7%
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INDIA – MACRO ECONOMY UPDATE
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Nikunj Parekh
Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
SDS
SOURCE: MINISTRY OF
FINANCE,
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INDIA – MACRO ECONOMY UPDATE
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SDS
- Export Growth of over 7% YoY in Q2 2014
- Foreign Currency Assets – USD 294.5BN as of End July 2014
- Headline WPI Inflation – 5.19% in July 2014
- The Indian economy is characterized by strong macro-economic
fundamentals. We have a well-developed financial system, young
and qualified labor force, dynamic private sector and growing
savings and investment rate.
- Govt has started positive measures by clearing major project
approvals, FDI in key sectors, fuel subsidy cuts and better
governance
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INDIAN AROMATICS MARKET
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- India plays an increasingly important role in the global aromatics
market.
- Booming demand from construction, new infrastructure projects,
polyster sector, chemicals & pharmaceuticals.
- Key producers: Reliance, IOC, Haldia, BPCL, OMPL, OPaL
- Key surplus aromatics: Benzene, Paraxylene, Orthoxylene,
Mixed Xylene (Isomer)
- Key Net Imports : Styrene Monomer, Toluene, Mixed Xylene
(Solvent), Phenol, Acetone, etc
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INDIAN AROMATICS MARKET
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- Very Competitive Market with many distributors and traders
operating.
- Credit Terms to End users is 60-90 Days. Different from China
- Congestion at Ports contribute to higher costs.
- Effected by International Price movements almost immediately
due to daily spot pricing in local market.
- Local Producers become aggressive if too much import / stock
build
- Slowly Moving into Floating Price mechanism mode for
Imports.
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BENZENE
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2013 -14 2014 – 2015 (E) 2015–2016 (E)
PRODUCTION 1347 KTA 1439 KTA 1829 KTA
DEMAND 730 KTA 870 KTA 930 KTA
IMPORT 0 0 0
EXPORT 617 KTA 569 KTA 899 KTA
-SD - Benzene Production Growing Due To New Tdp Units And
Cracker Expansions / New Projects.
- Major Domestic Demand Is Lab, Cumene, Chloro And
Nitro Benzene, Aniline.
- Future Demand Growth Expected At 7~8%.
- Main Export Markets: Middle East, Europe, Usa, Sea.
Source: CPMA
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TOLUENE
9 Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
2013 -14 2014 – 2015 (E) 2015–2016 (E)
PRODUCTION 140 KTA 140 KTA 164 KTA
DEMAND 440 KTA 460 KTA 500 KTA
IMPORT 300 KTA 320 KTA 336 KTA
EXPORT (10,000MT Re-
Export)
Small Qty Re-
Export
Small Qty Re-
Export
-SD - Toluene Production Is Steady, Ril Is Biggest Producer,
Capacity Utilisation Is Growing Slowly.
- Major Domestic Demand Is Solvents, Chloro / Nitro
Toluene, Tdi, Pharmaceuticals, Adhesives
- Not Imported In India As A Gasoline Blending Component.
- Future Demand Growth Expected At 4-5%.
- Main Import Sources: Singapore (64%), Thailand (16%), South Korea (10%),
Europe (6%), Middle East (4%).
Source: Industry
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PARAXYLENE
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0 Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
2013 -14 2014 – 2015 (E) 2015–2016 (E)
PRODUCTION 2258 KTA 2824 KTA 4056 KTA
DEMAND 2290 KTA 2658 KTA 4248 KTA
IMPORT 679 KTA 770 KTA 770 KTA
EXPORT 669 KTA 801 KTA 596 KTA
-SD - Paraxylene Production Is Increasing In India Due To Robust Pta And Pet
Growth
- East Coast (HALDIA) Needs To Import Px Due To
Logistical Reasons
- Main Import Sources: Oman, Kuwait, Singapore, Malaysia, Saudi
Arabia,
- Main Export Markets: Indonesia, China, Taiwan Etc.
Source: CPMA
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STYRENE MONOMER
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1 Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
2013 -14 2014 – 2015 (E) 2015–2016 (E)
PRODUCTION 0 0 0
DEMAND 551 KTA 582 KTA 614 KTA
IMPORT 551 KTA 582 KTA 614 KTA
EXPORT 0 0 0
-SD
- No Styrene Monomer Production In India
- Stable Demand Growth For Ps, Abs, Sbr
- Main Import Sources: Singapore, Saudi Arabia, Kuwait, Indonesia
- No Future Plan Yet For Sm Plant.
Source: CPMA
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ORTHOXYLENE
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2 Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
2013 -14 2014 – 2015 (E) 2015–2016 (E)
PRODUCTION 405 KTA 365 KTA 365 KTA
DEMAND 272 KTA 276 KTA 288 KTA
IMPORT 65 KTA 68 KTA 60 KTA
EXPORT 205 KTA 168 KTA 168 KTA
-SD
- Ox Operating Rates Are Down Recently
- Stable Demand Growth For Pa And Chemicals
- East Coast India Importing Due To Logistics And Some Volume To West
Coast Due To Tax Benefits.
- Export Market Will Be Hit Due To New Capacities In Asia
- Main Import Sources: Singapore, Isreal, Eu
- Main Export Markets: China, Malaysia
Source: CPMA
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MIX XYLENE (SOLVENT)
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3 Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
2013 -14 2014 – 2015 (E) 2015–2016 (E)
PRODUCTION 86 KTA 85 KTA 85 KTA
DEMAND 96 KTA 120 KTA 130 KTA
IMPORT 35 KTA 52 KTA 60 KTA
EXPORT 23 KTA 17 KTA 14KTA
-SD - Mx Demand And Supply Is Steady.
- Main Application Is Solvents, Pesticides Etc
- Imports Increasing Due To Tax Benefits And
Geographical Advantages
- Small Exports Due To Better Netback And Geographical Reasons
- Main Import Sources: Thailand, South Korea, Singapore
- Main Export Markets: Uae, Sri Lanka.
Source: CPMA
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DOWNSTREAM AROMATICS
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-SD
- Some other key downstream aromatics in India are Linear Alkyl Benzene
(LAB), Phenol, Acetone, Aniline, Hexane, C9, Cyclohexane, ACN, etc
- LAB is Exported as well as Imported due to Logistical Reasons and Netbacks.
- Phenol / Acetone are Net Import Products with volumes of 200KTA and 70KTA
Respectively.
- Aniline imports are growing due to Competitive prices from China and demand
growth in Dyes and Rubber Chemicals.
- Hexane, C9 , C9+ and Heavy Aromatics are imported on a regular basis for
solvent and extraction usage.
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SELLING TO INDIA – TAXES
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5 Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
-SD
- Import Tax is applicable in general for all Aromatics imported to India in
the range of 2% to 7.5%
- India has some FTA which impact buying pattern of Aromatics.
- Asean-India FTA (AIFTA)gives benefit of 0% Import tax for products such
as Toluene, Mix Xylene, OX, CX etc, and preferential Import Tax for Phenol
,Acetone, IPA etc.
- Korea – India CEPA FTA also gives tax benefits for Toluene, Mix Xylene,
C9, etc.
- No Tax Treaties yet with China, Taiwan, Africa, Middle East, Europe or
USA.
- Anti Dumping Duties on some products such as Phenol, Acetone etc
impact buying patterns.
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SELLING TO INDIA – LOGISTICS
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6 Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
-SD
- Most of the Petrochemical and Aromatics Plants in India are located on the
West Coast of India, followed by North and some in the South.
- East Coast and South Coast are still nett importers for Aromatics products and
will continue to do so due to logistics reasons.
- Kandla in West Coast India is the “Zhangjiagang” of India – the main
Petrochemical port of call due to logistics for serving West Coast and Pan India
Market.
- Aromatic Import Sources are slowly to South East Asia and Middle East due
to reduced lead times, Tax benefits and competitive freights compared to other
destinations.
- Main Port of Calls in India for Aromatics in the future will be Kandla, Mumbai,
Hazira, Cochin, Vizag, Ennore, Kolkata, Haldia.
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THE WAY FORWARD
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7 Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
-SD
- India is poised to grow and become one of the Key Markets for
Aromatics and Solvents after China in Asia.
- Benzene and PX will be the major Aromatics Export products and will be
a big competition to SEA and NEA producers.
- No new major capacity additions announced in other Aromatics, hence
the Import Volumes will keep growing.
- Huge Opportunities for setting up Aromatics and Downstream units for
Styrene, Toluene, Phenol, BPA etc.
- Imports are becoming more Geographically - localized as more Regional
Ports in India are becoming equipped to handle bulk imports
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ABOUT KUNJAL GROUP
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8 Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
-SD
- ESTABLISHED IN 1983
- DISTRIBUTION SET UP IN INDIA IN 4 PORTS FOR AROMATICS AND
SOLVENTS (KANDLA, MUMBAI, KOLKATA, HAZIRA)
- PRODUCT PROMOTERS FOR RELIANCE INDUSTRIES, NIRMA, SI
GROUP
- GROUP SALES TURNOVER OF OVER US$ 300 MILLION
- OFFICES IN KOLKATA, MUMBAI, KANDLA AND SINGAPORE
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ABOUT KUNJAL GROUP
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9 Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
-SD
- KEMPAR ENERGY PTE LTD – SINGAPORE : TRADING, SOURCING AND
LOGISTICS ACTIVITIES.
- ACTIVE IN INTRA-ASIA AND DEEP SEA TRADE APART FROM
SOURCING FOR INDIAN REQUIREMENTS.
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ABOUT KUNJAL GROUP
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0 Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
-SD
PRODUCTS TRADED
- TOLUENE - N-HEXANE
- MIX XYLENE - MDC
- BENZENE - N-BUTANOL
- PHENOL - IPA
- ACETONE - CAUSTIC SODA
- NORMAL PARAFFIN - METHANOL
- C9 - BUTYL ACRELATE
- ANILINE - OX
- MEG / DEG - DAA
- LINEAR ALKYL BENZENE (LAB) - ACETIC ACID
- POLYSTER FIBRE
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ABOUT KUNJAL GROUP
Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
KEY PARTNERS
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ABOUT KUNJAL GROUP
Platts - 2nd Asian Aromatics Conference | Seoul | September 2014
CONTACT US:
EMAIL: [email protected] | [email protected]
WEB WWW.KUNJAL.COM
YAHOO: NIK_KEMPAR
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