Issue: CPMA/020/2019 BUZZ CPMAChange 1 Polymer PVC 2047 20 734 7 171 183 7.6% 2 Polymer LLDPE+HDPE...
Transcript of Issue: CPMA/020/2019 BUZZ CPMAChange 1 Polymer PVC 2047 20 734 7 171 183 7.6% 2 Polymer LLDPE+HDPE...
India is looking at cutting capacity at its biggest oil refinery to match lower fuel demand projections and contain costs which jumped to $60 billion due to meeting stringent environment norms and relocation of the plant, top officials said. State-owned Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) together with Saudi Aramco and Abu Dhabi National Oil Co (ADNOC) plan to set up a 60 million tonnes refinery-cum-petrochemical complex on Maharashtra coast.
The board of Oil and Natural Gas Corporation (ONGC) has offered to help ONGC Petro Additions Ltd (OPAL) raise debt resources of `2,680 crore.
State-run Oil and Natural Gas Corporation (ONGC) said the proposed merger of its subsidiaries, Hindustan Petroleum Corporation (HPCL), and Mangalore Refinery and Petrochemicals (MRPL), would happen next year. The largest hydrocarbon producer in India has lined up a capital expenditure of Rs 32,921 crore during 2019-20, compared to Rs 29,449 crore during the previous financial year.
Indian Oil Corp plans to invest Rs 2 trillion ($27.98 billion) in five-seven years to meet energy needs of diverse user groups, Chairman Sanjiv Singh told at shareholders meeting.
The Haldia Petrochemicals Limited (HPL) will invest over Rs 78,000 crore for setting up a hydrocarbon processing complex in Baleswar district.
The HPL, one of the largest petrochemical majors in the country located at Haldia in East Medinipur district of West Bengal, has proposed to set up a light crude oil refinery, an aromatic complex and an ethylene cracker complex near the proposed Subarnarekha Port in Baleswar district. This would ensure availability of a wide range of feedstock for development of downstream petrochemical units.
GAIL (India) Limited’s Director (Projects) Ashutosh Karnatak has been appointed as the interim Chairman and Managing Director of the company. He has been serving as the Director (Projects) since March 2014.
GAIL India reported a net profit of Rs. 1,501.95 crore for the April-June period. That meant an increase of 4.19 per cent compared to the corresponding period a year ago. In a regulatory filing during market hours, GAIL said its revenue from operations came in at Rs. 18,481.56 crore, up 5.17 per cent compared to the year-ago period.
GAIL India Ltd will invest over Rs 45,000 crore over the next five years to expand the National Gas Grid and city gas distribution network, its chairman Ashutosh Karnatak said on August 20.
The PVC pipes maker’s consolidated net profit fell 43.8% to PET
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Issue: CPMA/020/2019
August 2019
Monthly Newsletter from
1 | August 2019
NN Crude oil futures were higher during mid-morning trade in Asia amid bullish data on last week’s US crude inventory, while ongoing
geopolitical tensions in the Middle East also provided price support.
NN PetroChina Guangdong Petrochemical Company has selected Honeywell UOP to build the world’s largest single-train paraxylene
unit at its new integrated petrochemical complex in Jieyang, Guangdong province, Honeywell said.
NN The Asian petrochemical markets this week will continue to be pressured by the US president’s announcement to impose 10% tariff
on another $300 billion worth of Chinese goods, effective September 1.
Member Companies in the NewsCPMA
Focus on SUP continued as Prime Minister clarion call on
Independence Day urging citizens to eliminate the use of
single-use plastics (SUP) from October 2, has refocused the
spotlight on corporate India’s preparedness in making his
vision a reality. However, in a first, the CPCB has mooted
a definition for single-use plastic: “Disposable plastics used
for packaging only once before being disposed or recycled
and which are non-biodegradable and remain in dumpsites,
landfills or littered on streets and cause serious environmental
or health hazards to our flora and fauna.” In what could be a
relief to beverage firms, only bottles of less than 200 ml will
be barred from use, according to the proposal.
Indian economy continued to face headwinds in terms of
weak core sector output, slump in manufacturing activity and
services sector. Slowdown is being witnessed across sectors
- Automobile sales in India witnessed the worst-ever fall in 21
years. India’s core sector output remained weak in July, with
growth slowing to 2.1% from a year earlier, as production of
coal, crude oil, natural gas and refinery products declined.
Manufacturing activity in India slumped to a 15-month low
in August as sales slowed, forcing factories to cut back on
production. India’s services sector activity softened in August
as job creation and output expansion moderated. The twin
sets of data indicated the lack of any indications of recovery,
both in demand or investment, in the economy in the second
quarter from the six-year low it touched in the June quarter.
In the core sector, cement (7.9%) and steel (6.6%) posted good
growth. Post the surprisingly weak GDP growth momentum in
Q1 FY20, the moderately healthy growth of cement and steel
output in July 2019 offers some encouragement.
On a positive note, FDI equity inflows rose 28% in the first
quarter of 2019-20 to $16.3 billion from $12.7 billion in the
year-ago period.
In past two weeks, the government has announced a number
of measures including consolidation of public sector banks
and capital infusion in them besides a relaxation in foreign
investment norms and steps to ease credit flow to reverse
the slowdown.
On RCEP front - Members of the Regional Comprehensive
Economic Partnership (RCEP) have asked India to decide
if it wants to remain a part of the proposed trade grouping,
as pressure mounts to conclude the deal this year. Talks are
on for instantly ending tariff on 28% of traded goods, 35%
in phases. India is likely to give Asean the steepest cut and
China the least.
Commentary for the month
continued on page 2
Economy & Industry Snippets
Upcoming Events
2 | August 2019
PETCHEM BUZZ
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CPMA MembersApcotex Industries Limited N BPCL N Chemplast Cuddalore Vinyls Ltd. N DCM Shriram Ltd. N DCW Ltd. N Engineers India Ltd. N Finolex Industries Ltd. N GAIL
(India) Ltd. N Gujarat State Fertilizers & Chemicals Ltd. N Haldia Petrochemicals Ltd. N Hindustan Petroleum Corporation Ltd. N HPCL – Mittal Energy Ltd. N Indian Oil Corporation Ltd. N Indian Synthetic Rubber Private Limited N INEOS Styrolution India Ltd. N LG Polymers (India) Pvt. Ltd. N MCPI Pvt. Ltd. N Mangalore Refinery and Petrochemicals Ltd. N ONGC Mangalore Petrochemicals Ltd. N ONGC Petro Additions Ltd. N Reliance Industries Ltd. N
Supreme Petrochem Ltd. N Tamilnadu Petroproducts Ltd.
Associate Members: Braskem SA N HPL Additives Ltd. N ICIS N Indorama Industries Ltd. N Jindal Poly Films Ltd. N SABIC India Pvt Ltd.
CHEMICALS AND PETROCHEMICALS MANUFACTURERS ASSOCIATION708, 7th floor, Kailash Building, 26 Kasturba Gandhi Marg, New Delhi – 110 001. N Telephone: 011-43612198 N Email: [email protected]
6-9 October 2019 | BERLIN
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Source: MosPI, Platts. May IIP revised to 4.6% from 3.8%
Trade Statistics- Key Products
Sr.
No.Product Category Product
2018-19 2019-20 (Apr-Jul) Average monthly Imports
Imports
(KT)
Exports
(KT)
Imports
(KT)
Exports
(KT)
2018-19
(KT)
2019-20
(Apr-Jul)
(KT)
%
Change
1 Polymer PVC 2047 20 734 7 171 183 7.6%
2 Polymer LLDPE+HDPE 1179 966 379 315 98 95 -3.5%
3 Polymer PP 855 718 345 156 71 86 20.9%
4 Polymer PET 335 1082 165 336 28 41 48.1%
5 Polymer LDPE 341 164 140 45 28 35 23.0%
6 Polymer ABS 119 0.4 36 0.1 10 9 -9.1%
7 Polymer PS 54 63 22 18 4 6 24.2%
8 Polymer SAN 9.2 0.4 3.3 0.3 0.8 1 8.1%
9 Polymer EPS 1.2 3.1 0.6 0.9 0.1 0 34.7%
10 Elastomers PBR 105 13 36 6 9 9 3.0%
11 Elastomers SBR 126 29 32 11 11 8 -23.7%
12 Elastomers Butyl Rubber 70 0 21 0 6 5 -12.0%
13 Intermed Fibre PTA 570 162 370 17 47 93 94.9%
14 Intermed Fibre MEG 635 293 313 82 53 78 47.9%
15 Intermed Polymer SM 818 7 288 2 68 72 5.8%
16 Intermed Polymer EDC 582 19 232 20 48 58 19.8%
17 Intermed Polymer VCM 458 0 152 0 38 38 -0.3%
Source: DGFT
Key Economic Indicators UoM Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19
Forex Reserves US $ Bn 407.0 418.5 419.9 427.7 429.6 429.1
Exchange rates 1 US$ 69.7 69.4 69.8 68.9 68.8 71.7
1 Euro 78.7 78.0 78.1 78.4 76.6 78.8
100 Jap Yen 62.7 62.2 63.4 63.9 63.4 67.5
1 Pound Sterling 91.8 90.4 89.9 87.6 84.1 87.3
IIP%age over Prev
month end0.4% 3.4% 4.6% 2.0% N.A. N.A.
Dubai Crude Oil US$/Barrel 66.9 70.9 69.0 61.8 63.3 59.1
Naphtha C&F SEA US$/MT 540 569 544 465 500 455
C2 C&F SEA UD$/MT 984 918 888 716 721 820
C3 C&F SEA US$/MT 828 816 801 814 854 856
Rs 73.17 crore on 14% rise in net sales to Rs 943.81 crore in Q1 June 2019 over Q1 June 2018.Shares of Finolex Industries fell 1.43% to Rs 525.85. The result was announced on Saturday, 10 August 2019.
CPMA: Member Companies...continued from page 1
CPMA submitted detailed justification
to keep Key Petrochemical Products
under exclusive list of RCEP
Further submissions made as to how
Benzene and Toluene to be treated
under RCEP
First Meeting of Chemicals &
Petrochemicals Advisory Forum
took place during the month
where CPMA mainly focused on
the following:
NN Urgently address Tariff issues
NN Taskforce to address the need for
India to produce chemical products
which India is not producing w.r.t to
Fuel demand disruption because of
Electric Vehicles
NN Bring back the Income tax rebate for
R&D (being reduced to 100%)
NN RCEP is a real threat and need to
address it immediately and safeguard
the domestic industry and upcoming
investments in the Country
CPMA made a case for submissions
on Key Pet-Chem Product stating
arguments for increase in Import Duty
and arguments against reduction in
duty under RCEP.
Raised the issues on logistics constraints
being faced by the members at Haldia
dock in a meeting at DCPC.
MOS ( C& F ) chaired the meeting with
particular focus on RCEP where CPMA
highlighted issues being faced by the
industry and cautious approach needed
before finalization of RCEP.
Members attended the meeting
convened by Secy DCPC on perspective
plan for Petrochemical industry.
Attended the meeting at Ministry of
Jal Shakti on action plan needed to
implement the Campaign on plastic
clean up, the call given by Hon’ble PM
beginning 11th Sep 2019.
Government Communications and Interactions
53rd Annual Meeting