2013-01-31 08:57:48 - Recently published research from Business Monitor International, "India Petrochemicals Report Q1 2013", is now available at Fast Market Research
The India Petrochemicals Report examines the enormous long-term potential exhibited by the local consumer market while highlighting short-term concerns about a sharp drop in manufacturing exports due to the eurozone crisis. In this report, BMI also examines the way in which producers are grappling with both the short-term risks and ongoing problems associated with land acquisition that have led to significant delays. It also analyses the impact of exchange rate volatility, which is exacerbating the effects of sustained high oil prices on petrochemicals margins.
Indian petrochemicals production was marked by a sharp decline in growth in 2012 in line with broader economic trends. Production indices point to a sharp downturn from previous years and well below the 9.5% average demand growth
rate the government has targeted for the petrochemicals market. The investment environment is plagued by institutional problems, such as corruption, lack of legal enforcement and the country's notoriously vague land acquisition rules as well as energy supply and feedstock resources. These are holding the country back from more rapid development of the petrochemicals industry, despite the government's drive to create industrial clusters. For many majors, in spite of the market potential and import tariffs, it still remains more attractive to export to India, and only substantial enticements are likely to encourage investment. The petrochemicals industry is replete with examples of project failures and lengthy delays. Issues include lack of feedstock access, political controversies over land acquisition and mechanical and technical problems. There are further structural challenges ahead, notably imported feedstock requirements which have increased costs as a result of a combination of rising global energy prices and currency depreciation.
Full Report Details at
- www.fastmr.com/prod/529378_india_petrochemicals_report_q1_2013.a ..
Over the last quarter BMI has revised the following forecasts/views:
* Petrochemicals output growth is well below BMI's previous forecast of 8% and has been revised down to 2.5% for 2012. A return to stronger growth is expected in 2013, but not at the rates the government is targeting. Much will depend on the strength of Indian household spending, which is under pressure due to high interest and high inflation rates.
* Factors militating against growth included the weakening of the Indian rupee, which depreciated by around 15% against the US dollar in 2012, a decline in GDP real growth to around 5.7% from 6.5% in 2011 and a slump in industrial growth, which hit negative territory in mid-2012 with some key consuming industries such as the automotive sector contracting in H1.
* While BMI still anticipates significant growth in the Indian polymers market in the years ahead as packaging, construction and automotive industries raise per capita consumption, there are growing doubts as to whether the domestic industry will be capable of fulfilling this demand.
* BMI estimates national polymer capacity at 13.4mn tpa in 2013, which is likely to provide for most of the country's current needs. Most capacity additions in recent years have focused on commodity plastics, following the domestic market trend. In 2013 alone, around 1.7mn tpa of PE capacity is set to be added.
Report Table of Contents:
- India Petrochemicals Industry SWOT
- India Political SWOT
- India Economic SWOT
- India Business Environment SWOT
Global Petrochemicals Overview
Global Oil Products Price Outlook
- Table: BMI's Refined Products Forecasts, 2010-2016
- Table: Middle East Outperforms In Terms of Passenger Growth
Emerging Asia Petrochemicals Overview
India Market Overview
- Table: India's Petrochemicals Sector - Cracker Capacity
- Table: India's Petrochemicals Sector - Polypropylene Capacity
- Table: India's Petrochemicals Sector - Polystyrene Capacity
- Table: India's Petrochemicals Sector - Polyethylene Capacity
- Table: India's Petrochemicals Sector - Polyvinyl Chloride Capacity
Industry Trends And Developments
- Projects And Expansion Plans
Asia Petrochemicals Risk/Reward Ratings
- Table: Asia Petrochemicals Business Environment Ratings
- India Petrochemicals Risk/Reward Ratings
Industry Forecast Scenario
- Petrochemicals Outlook
- Table: India's Petrochemicals Sector, 2010-2017 ('000 tpa capacity, unless otherwise stated)
- Table: India - GDP By Expenditure, Current Prices Breakdown, 2008-2016
- Gas Authority Of India (GAIL)
- Indian Oil Corporation (IOC)
- Reliance Industries (RIL)
Glossary Of Terms
- Table: Glossary Of Petrochemicals Terms
- Table: India's Population By Age Group, 1990-2020 ('000)
- Table: India's Population By Age Group, 1990-2020 (% of total)
- Table: India's Key Population Ratios, 1990-2020
- Table: India's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- Chemicals and Petrochemicals Industry
- Cross Checks
- Business Environment Ratings
- Table: Petrochemicals Business Environment Indicators And Rationale
- Table: Weighting Of Indicators
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
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