Page 124 - CW E-Magazine (14-1-2025)

Point of View
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in Paradeep (Odisha). The plants were expected to be commissioned by early 2024, but have been delayed and will most likely be ready
only in the middle of 2025. Alongside an MEG plant planned for the site, it will serve as a source of feedstocks for the company’s upcoming 1-Bromo-3-Chloropropane 3-Aminoacetophenone Crotonaldehyde
357-ktpa textile yarn manufacturing project located in the city of Bhadrak in Odisha. 1-Propanephosphonic Acid 3-Aminobenzoic Acid Crotonic Acid

Cyclic Anhydride 3-Ethylaniline Decanal
The PTA project of JBF Petrochemicals Ltd., a subsidiary of JBF Industries Ltd., a polyester manufacturer, which became bogged down
due to financial travails, has received a new lease of life, following the October 2022 decision of the National Company Law Tribunal (NCLT), 2,4-Dimethyl-Nitrobenzene 3-Ethylnitrobenzene DETDA
approving the financial bid of GAIL (India) Ltd. to take over the debt-laden asset through an insolvency process. After duly securing owner- 2,5-Xylidine 3-Hydroxyacetophenone Hexanal
ship in June 2023, and incorporating a new company, GAIL Mangalore Petrochemicals Ltd. (GMPL), the gas major is well into the process 2,3-Dimethyl-Nitrobenzene 3-Methyl-2-Nitrobenzoic Acid Hexanoic Acid
of restarting the project and is reported to be targeting a completion date sometime in 2025. The 1.25-mtpa PTA plant is located in a Special 3-Methyl-4-Aminobenzoic Acid Hydroxyacetone
Economic Zone in Mangalore, adjacent to the Mangalore Refinery, from which it will source the PX required. In November last year, GMPL 2,3-Xylidine
re-engaged with the process licensor, INEOS, to support the plant’s revitalization. 2,4-Xylidine 3-Methyl-4-Nitrobenzoic Acid Lauric Aldehyde
2,6-Dimethyl-Nitrobenzene 3-Nitroacetophenone Malononitrile
If these projects are commissioned as per schedule, total installed capacity for PTA in India will reach 11.89-mtpa by FY27. If an operating 2,6-Xylidine 3-Nitrobenzoic Acid Methyl 2-Bromohexanoate
rate of about 87% – the average over the last few years – is maintained, this will translate to a domestic availability of about 10.3-mt, well 3-Nitrophthalic Acid Methyl 3-Methoxyacrylate
ahead of domestic demand which is expected to be in the range of 8.8-mt. Doing so will hence call for a ramp up in exports – to the extent 2-Aminobenzoic Acid 3-Nox Mixed Xylidine
of 1.6-mt, representing the surplus over demand. This will be challenging given the considerable capacity build-up in the region, notably in 2-Ethylaniline
China. The alternative – and possibly a more likely scenario – is operating rates for the industry as a whole to come down to about 72% in 2-Ethylnitrobenzene 4-Aminoacetophenone Octanal
the near term to match domestic demand and supply. 4-Aminobenzoic Acid Octanoic Acid
2-Methyl-3-Nitrobenzoic Acid 4-Ethylaniline O-Cyclohexylphenol
Global capacity build 2-Methyl-5-Ethylpyridine 4-Hydroxyacetophenone Orthophthalodinitrile
According to CPMA, there is a huge PTA overcapacity in Asia with an exportable surplus of ~26-mtpa collectively available with China, 2-Nitroacetophenone 4-Nitroacetophenone P-Cymene
Korea, Thailand and Vietnam, which is likely go up to 33-mtpa by 2025. China alone had overcapacity of 18-mtpa in 2022 – nearly three times 2-Nitrobenzoic Acid
India’s total consumption, to give a perspective – and this surplus is expected to augment further to 27-mt in 2025. Between 2016 and 2023, 4-Nitrobenzoic Acid Potassium Carbonate
the global PTA capacity addition was about 35-mtpa, with the overwhelming share (90%) in China, which now accounts for nearly two-thirds 3,4-Dimethyl-Nitrobenzene 4-Nitroethylbenzene Potassium Hydroxide
of global consumption and capacity. A distinguishing of the new builds in China is the scale and the level of self-sufficiency for PX. The 3,4-Xylidine 4-Nox Tertiary Butyl Alcohol
business is today dominated by plants of latest vintage with capacities ranging from 1.5-mtpa to 3.0-mtpa with upstream (PX and refining) 3,5-Xylidine Chlorosulfonyl Isocyanate Thiophenol
and/or downstream (polyester) integration. Average plant sizes have risen from 1.0-mtpa in 2015, to 1.3-mtpa in 2020 and to 1.8-mtpa now.
PLEASE CONTACT WITH YOUR SPECIFIC REQUIREMENTS
Between 2016 and 2023, about 14-mtpa of PTA capacity shut down globally – of which 11-mtpa was in China. More rationalisation is
expected, particularly amongst standalone units, but this will not compensate for the new builds. As a consequence, global operating rates,
now in the range of 72%, could trend lower. CHEMET

Protective measures
Domestic manufacturers of PTA – including RIL, MCC PTA and Indian Oil Corporation – have sought to protect their turf against HEAD OFFICE : Span Centre, 2nd Floor, Ramakrishana Mission Road, Santacruz(West), Mumbai - 400 054, INDIA.
low-priced imports by seeking tariff and non-tariff barriers and these have been a bone of contention with user industries who actively Tel : +91-22-66802222 / 26045601 E-Mail : info@chemetindia.com Website: www.chemetindia.com
protested. Anti-dumping duty (ADD), ranging from $27-160 per tonne, was imposed in 2016 and 2019 on PTA imports from China, Iran,
Indonesia, Malaysia, Taiwan, Korea, and Thailand, but was removed in the Union Budget presented in February 2020 (possibly a first BRANCH OFFICES
intervention for a trade measure in a Budget speech by a Finance Minister) “in the interest of the public.” The removal was challenged by some AHMEDABAD OFFICE : 1101, Safal Prelude, HYDERABAD OFFICE : Flat No. 104, K1 Primo,
domestic producers in the Gujarat High Court, which stayed the order, only to have the Supreme Court setting the stay aside in July 2024. Corporate Road, Nr.Prahladnagar Garden, Kondapur X Roads, Hanuman Nagar, Kondapur,
Anandnagar, Ahmedabad - 380 015, INDIA. Hyderabad-500 084, Telangana, INDIA.
In another measure, ostensibly to regulate the import of sub-standard goods and promote the manufacturing of superior products within Tel : +91-79-40370725
the country (but in reality, to only make imports more tedious), the Bureau of Indian Standards (BIS) imposed Quality Control Orders (QCOs) E-Mail : chemetahmedabad@chemetindia.com Tel : +91-40-4856 5970 / 71
for PTA and MEG in June 2023 and on PSF in October 2023. But with several overseas players getting licenses, the threat from imported E-Mail : chemethyderabad@chemetindia.com
material continues to rise. NEW DELHI OFFICE : 214, Hans Bhavan,
Wing No.1, Bahadurshah Zafer Marg, KOLKATA OFFICE : Sharma House, 3rd Floor, 1/2, Lord
Build ahead of demand New Delhi - 110 002, INDIA. Sinha Road, Kolkata - 700 071, INDIA.
Consumption growth for polyesters – particularly fibre – is, almost entirely an Asia story, and growth in the region is expected to be in Tel : +91-11-45751865 Tel : +91-33-22827247 / 22826511
the range of 5-6%. Demand in India is expected to do better. History of petrochemicals in India has shown that when capacity has come E-Mail : chemetdelhi@chemetindia.com E-Mail : chemetkolkata@chemetindia.com
ahead of demand, the latter accelerates above historical numbers. PTA manufacturers – old and new – are pinning their hopes on this time
being no different. In the near term, however, the surfeit of new capacity, all coming bunched together in a year or two from now, will put CHENNAI OFFICE : 8-J, Century Plaza, 560-562,
pressure on margins. Anna Salai, Teynampet, Chennai - 600 018, INDIA.
Tel : +91-44-24342245 / 24349301
Ravi Raghavan E-Mail : chemetchennai@chemetindia.com

124 Chemical Weekly January 14, 2025

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