Page 149 - CW E-Magazine (26-9-2023)

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MARKETING PARTNERSHIP sive infrastructure development plans, FY2024 and FY2025. In addition, the calendar year. “A weak macro-economic
growing urbanisation levels, Housing average quantity of aluminium used per outlook is likely to curtail global
Best Agrolife, Syngenta join hands for herbicide for All schemes along with railways in- vehicle in India remains signifi cantly aluminium demand in the near term.
vestment in the metro rails network and lower (~40-45 kgs) compared to the The global aluminium consumption
launch aluminium-bodied Vande Bharat trains global average of ~160-200 kgs. ICRA is expected to grow by a feeble ~1%
bode well for the domestic aluminium believes that focus on vehicular weight in CY2023. In addition, global metal
New Delhi-based agrochemicals Rs. 300-350-crore of the market in the BAL has also been granted a 20- demand. In addition, the government’s reduction to improve fuel effi ciency supply shows signs of improvement,
fi rm, Best Agrolife Ltd. (BAL), has next three years. year patent for an invention of a syner- conducive policy is likely to support would entail a higher per unit usage of primarily in China, which is likely to
inked an agreement with multinational gistic pesticidal composition that in- the rapid transition to new age techno- aluminium, going forward. result in a surplus metal balance in the
giant, Syngenta, for the marketing of “Previously, India imported pyroxa- cludes two insecticides and a fungicide logies and clean energy, which remains current calendar year. Chinese con-
Pyroxasulphone 85% WG herbicide sulphone from other countries, but to address some of the most pressing the tailwind for spurring domestic alu- Further, a signifi cant transition to sumption continues to face headwinds,
under the brand name, ‘Movondo’. after gaining registration for the local challenges in rice cultivation. minium demand”. the electric vehicles in the coming dec- primarily due to a weak demand in the
“Pyroxasulphone is a pre-emergence herbi- manufacturing of pyroxasulphone 85% ade would also aid domestic aluminium building and construction segments.
cide for wheat, corn, and soybean that WG herbicide, BAL has become the Fungicide launched in Telangana Automotive demand demand in the long term. Consequently, aluminium prices are ex-
ensures increased yields while offering fi rst Indian agrochemical business to In another development, BAL in- The automotive sector also plays a pected to remain under pressure in the
outstanding crop safety by eliminating manufacture pyroxasulphone 85% WG formed about the launch of its fungi- pivotal role in the overall consumption Global consumption near term at least, and any improvement
weeds that pose a threat to these crops. locally. Seedlings India, one of the cide ‘Tricolor’ at an event in Medchal, of aluminium in India. After a stellar While domestic demand remains re- would hinge on a stronger recovery in
It is more effective against broadleaf wholly-owned subsidiaries of BAL, Telangana. Comprising Trifl oxystrobin performance in FY2023, automotive silient, global aluminium consumption Chinese demand and improvement in
weeds and requires fewer applications will produce it in India,” BAL said. 10% + Difenoconazole 12.5% + Sul- demand is expected to remain steady in is likely to remain muted in the current global sentiments,” Mr. Roy added.
than other commercial herbicides. phur 3% SC, this fungicide offers com-
Pyroxasulphone 85% WG controls the “Prior to this, multinational corpora- prehensive disease control capabilities. PROFITABILITY CONCERNS
primary troublesome weed in wheat, tions have typically supplied key chemi- Its composition delivers prophylactic,
Phalaris minor,” BAL informed. cal compounds to Indian agrochemical curative, and eradicative actions, effec- ICRA revises outlook for petrochemicals to negative
companies. However, this deal marks a tively addressing a diverse range of
This agreement will help both pivotal shift, as it signifi es the fi rst in- crop diseases such as sheath blight, Rating agency ICRA has revised of a host of chemicals and thus, volume well as margins under check. For poly-
companies maximise the value of the stance of Indian agrochemical compa- powdery mildew, scab, and alternaria. the outlook on the petrochemicals and growth for these chemicals is expected propylene, China is adding around 5.5
new herbicide and effi ciently estab- nies taking the lead by exporting these The combination of three active ingre- basic chemicals industries to ‘negative’ to slow down in the near term.” million tonnes of capacity, the majority
lish a market for the product. The molecules to their multinational coun- dients ensures heightened effi cacy, bene- from ‘stable’ due to weak demand and of which will come online in 2023.
pyroxasulphone market is worth over terparts,” the agrochemical company fi ting crops like rice, tomato, grapes, global supply glut. Outlook on spe- Moreover, sizable capacity expan- Globally, polyethylene capacity is fore-
Rs. 450-crore, and BAL plans to corner further said. chilli, wheat, mango, and apple. cialty chemicals remains stable, with sions over 2022 to 2024, are expected cast to grow by almost 6 percent year-
profi tability expected to moderate in to weigh on the operating rates and on-year in 2023, even as demand is
BRIGHT OUTLOOK FY2024, but not trigger an outlook would result in a supply overhang, projected to grow by only 1 percent.
change at this stage, it said, adding that which is likely to keep the spreads and
India’s aluminium consumption to grow by 9% in the petrochemical and basic chemicals margins under pressure in the next 2-3 The global supply overhang is ex-
industries are likely to face pressure on years. While domestic demand is likely pected through 2025, ICRA said, add-
FY2024: ICRA operating rates and profi tability. to remain healthy, dumping of excess ing that for poly vinyl chloride (PVC),
output by large overseas producers is the global capacity addition is again
In a recent note on the Indian primary the power transmission and distribu- for the domestic aluminium demand “The petrochemicals and basic likely to keep profi tability under pres- led by China, which is expected to add
aluminium industry, ICRA has estimat- tion (T&D) sectors. ICRA notes that in the foreseeable future. Further, an chemicals industries have been facing sure, he said. around 5 million tonnes by 2026, along
ed the domestic aluminium demand the Central Electricity Authority (CEA) improvement in solar rooftop installa- headwinds on account of weak demand with India, where capacity addition is
growth to remain healthy at around 9% has outlined a planned capacity expan- tion market, along with large capacity amid a global supply glut, owing to capa- Polymer trends expected to be around 4 million tonnes
in the next two fi scals, given the Gov- sion of 16,600 circuit kilometres (ckm) additions expected in the solar module city expansions in several chemicals. For commodity polymers, the global by 2026. “The domestic demand on the
ernment’s thrust on infrastructure deve- for the current fi nancial year, which is manufacturing in India in the next 3-4 This is likely to exert pressure on the demand is expected to remain muted. other hand remains healthy with growth
lopment. Domestic demand growth an increase of over 13% compared to fi nancial years, would also drive do- operating rates as well as profi tability While the European economy has wit- of around 5-8 percent expected over the
would sharply outpace the rate of global FY2023. mestic aluminium demand as a part of of the petrochemical and basic chemi- nessed weak growth and infl ationary near to medium term for PE, PP and
growth in aluminium demand. ICRA the renewable energy transition drive. cal players,” ICRA said in a statement. pressures, the recovery of the Chinese PVC, driven by health, packaging, auto-
foresees a stable outlook for the domes- In addition, the government’s am- According to Mr. Prashant Vasisht, economy has been sluggish despite motive, consumer durables and housing
tic aluminium industry. bitious target to achieve 500-GW of Elaborating on the domestic alu- Senior Vice President and co-group head of opening up. Simultaneously, several sectors. Despite this, manufacturers are
renewable energy capacity by 2032 minium demand outlook, Mr. Jayanta corporate ratings, ICRA, “Tepid global capacities have already been added and facing headwinds owing to dumping by
Demand from energy sector would entail signifi cant capacity ad- Roy, Senior Vice-President and Group growth and infl ationary pressures in further expansion is underway, especi- overseas manufacturers due to lacklus-
In the domestic market, a major dition for the transmission lines in the Head, Corporate Sector Ratings, ICRA, major chemical-consuming nations are ally in China, the US and the Middle East, tre demand in other markets,” the state-
portion of aluminium is consumed in coming decade, which augurs well said, “The Central Government’s mas- exerting pressure on the global demand which will keep the operating rates as ment said.

148 Chemical Weekly September 26, 2023 Chemical Weekly September 26, 2023 149

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