Chemical Weekly reposted this
2024 sees several project announcements and completions, but tough external environment poses commercial risks Over the last couple of years, India has seen several projects getting commissioned for a slew of chemicals – phenol/acetone, acrylate monomers, some synthetic rubbers (styrene butadiene and butyl), polyolefins, etc. In the next phase – spanning the next 2-3 years – we should have projects making styrene, oxo-alcohols, acrylic acid & acrylates, polyvinyl chloride (PVC) resin, bisphenol-A (BPA), polycarbonate (PC), among others. Despite these, in most instances, the anticipated demand growth will outstrip incremental supply, and imports will continue. As my Point of View in the December issue of Chemical Weekly notes, there are several commonalities amongst the new petrochemical projects. For one, the emphasis seems to be on building the C3 (propylene) value chain. This is not surprising as FCC propylene offers a simple, low-cost route to the olefin and one that can be conveniently retrofitted into existing refinery operations. There is also an overwhelming emphasis on PP production, which may not be wise, as it runs the risk of overbuild should demand growth not pan out as anticipated. There are other propylene derivatives that can be considered, and these merit attention if not by the refiners themselves then by third party investors for whom it will be more worthwhile. India needs a much larger and more diversified chemical industry than now. The former it seems is happening; not so sure of the latter. Seen alongside announcements made notably by oil refining companies pinning their growth aspirations on petrochemicals, the project announcements point to a welcome enthusiasm. But the tough competitive environment in most value chains poses commercial risks. The full opinion piece is available here: https://lnkd.in/dc_KmVxR Reliance Industries Limited #plasticsrecycling #circulareconomy #plasticswaste #chemicalrecycling #phenol #acetone #bisphenolA #polycarbonate #aniline #methylmethacrylate Haldia Petrochemicals Ltd #ethyleneoxide Adani Group GRASIM INDUSTRIES LIMITED ( ADITYA BIRLA GROUP) #paints #penicillinG AUROBINDO PHARMA LTD #greenhydrogen #causticsoda #chlorine #propylene #competitiveness