1. The Indian chemicals distribution business is poised to double its size reaching ~US$10 billion by 2016–17 from ~US$5 billion in 2011, according to consulting firm.
Chemagility. The industry is expected to grow at 10%–12% per annum through 2017 on the back of increasing demand for chemicals in the infrastructure sector as well as growing population and urbanization.
2. PVC demand in the country increased by 15% in FY13 to 2.2 million tons. The pipes segment accounted for 74% of the total PVC demand, growing by 14% to ~1.6 million tons in the year. Growth in pipes and fitting industry is a major driver of demand for PVC and it is forecast to grow steadily as the PVC pipes have important applications in the sewerage sector. Another high-growth, end-user industry for PVC has been window profiles with demand growing by 25% to 75,000 tonnes in FY13 as increasing number of builders choose PVC windows. The local PVC capacity is 3 million tons per annum and India imports around 1 million ton per annum. India imports 300,000 tons per year of PVC from South Korea, 270,000 tons per year from Taiwan, 150,000 tons per year from Europe, 100,000 tons per year from China, less than 100,000 tons per year from the US, and around 60,000 tons from Mexico. India is expected to have an additional 200,000 tons/year of local capacity by 2014.
3. The polymer demand in India is projected to grow at 10%–11% in 2013 and 2014, driven by strong demand for polyolefins in the country, according to the Indian industry
association — Chemicals & Petrochemicals Manufacturers’ Association (CPMA).
4. The Indian market for specialty chemicals has the potential to grow to US$80 billion by the end of 2020 from US$20 billion currently. The industry is expected to grow, driven by growth in underlying end-user markets, increased usage intensity and growing demand for superior product specifications and standards in the Indian market.
Regulations
1. India imposes anti-dumping duty (ADD) on soda ash from Turkey, Russia
2. India extends ADD on carbon black (only which are used in rubber applications) from Australia, China, Thailand and Russia
3. India extends ADD on phenol from South Africa, exempts Singapore and the EU
4. India raises import duties to 7.5% on all polymers and ethylene vinyl acetate (EVA)