Chlor-Alkali Market Overview - Elite ... - Elite...
Transcript of Chlor-Alkali Market Overview - Elite ... - Elite...
Chlor-Alkali Market Overview
Ramakant Bhat
Indian Petrochem 2014
Contents
• Chlor-Alkali introduction
• Global Chlor-Alkali Industry
• Chlor-Alkali Industry in China & India
• Outlook for the Industry
• About Tricon Energy Ltd
Chlor-Alkali Chemistry
Chlor-Alkali : key segment in Inorganic chemicals
Used in a wide array of sectors including chemicals & petrochemicals
Caustic & Soda Ash >60% of Inorganic Chemicals
Caustic Soda
Soda Ash
Aluminium Fluoride
Carbon Black
TiO2 Sulphuric Acid
Calcium Carbide
Others
Inorganic
Chemicals
Caustic Soda & Chlorine Applications
Global Chlor-Alkali Industry
China 40 46%
[VALUE] 2.4%
N. America 16 19%
Europe 12.6 15%
3.4 4%
2.5 3%
2.5 3%
2.5 3%
2.5 3%
1.7 2%
0.8 1%
0.1 0%
China
NE Asia ex-China
N America
W Europe
Indian Sub-continent
Middle East
L America
SE Asia
CIS & Baltic
E&C Europe
Africa
Oceania
Global Caustic Soda Capacity (MMTS)
101
204
37
157 205 25
51
41
80
75
7
14
6
13
10
93
98
86
65
75
226
367
170
315
365
U.S West Euro Mid East NEA China
Var. Exp. + Fixed Steam Salt Electricity
ECU COST REGION WISE (USD)
Pulp & Paper 15%
Alumina 12%
Organics 17%
Detergents/ Textiles
15%
Inorganics 13%
Water Treatment
5%
Others 23%
Pulp 25%
Other 15%
Alumina
60%
Growth in key user sectors likely to
continue to fueling demand
2013 Global Caustic Demand 70 MM MT
2013 Global Net Exports = 5.5 Mil DMT
driven by alumina & pulp sectors
CAUSTIC SODA SECTOR WISE CONSUMPTION
Segment Avg Growth 2010-15
Alumina 5.90%
Detergent & Textiles 5.50%
Organics 4.40%
Water Treatment 4.30%
Caustic Soda Total 4%
Inorganic 3.40%
Others 3.20%
Pulp & Paper 2.20%
CAUSTIC SODA – GLOBAL TRADE FLOW
Global Trade is approx. 13 Mil DMT
Caustic Soda movement within Asia
China Caustic Soda Capacity 40 MMTS
HEBEI
HEILONGJIANG
JILIN
LIAONING
SHANXI
TIANJIN
SHANDONG
NINGXIA
JIANGSU SHAANXI
INNER MONGOLIA
ANHUI
HENAN
FUJIAN
ZHEJIANG
JIANG XI
HUBEI
HUNAN
BEIJING
GANSU
QINGHAI
GUIZHOU
SICHUAN
YUNNAN
GUANGXI
GUANG DONG
HAINAN
XIZANG (TIBET)
MACAU
HONGKONG
TAIWAN
XINJIANG
SHANGHAI
Port
Manufacturer
QINGDAO
TIANJIN
NINGBO
SHANGHAI
HONGKONG
HEBEI
HEILONGJIANG
JILIN
LIAONING
SHANXI
TIANJIN
SHANDONG
NINGXIA
JIANGSU SHAANXI
INNER MONGOLIA
ANHUI
HENAN
FUJIAN
ZHEJIANG
JIANG XI
HUBEI
HUNAN
BEIJING
GANSU
QINGHAI
GUIZHOU
SICHUAN
YUNNAN
GUANGXI
GUANG DONG
HAINAN
XIZANG (TIBET)
MACAU
HONGKONG
TAIWAN
XINJIANG
Domestic Producer
1995 – 5.82 m dmt
2000 – 8.00 m dmt
2005 – 14.70 m dmt
2010 – 30.00 m dmt
2012 – 37.36 m dmt
2013 – 40.00 m dmt
Total: 185 producers
Capacity in 2013: 40 million DMT
Capacity over 400,000dmt: 22 producers
Capacity between 100,000 and 400,000dmt: 107 producers
Capacity below 100,000dmt: 56 producers
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
7.3 8.2 9.4 10.6 12.4 15.1 17.6 18.5 18.9 20.9 24.7
27.0 8.5
9.8 10.7 11.9 14.7 18.1
19.7 24.8
27.9 30.2
34.0 37.4
China Production China Capacity
China Caustic Soda Production (MMTS)
Chlor-Alkali Industry in India
India Caustic Soda capacity
2011-12 000’DMT
2012-13 000’DMT
2013-14 000’DMT
Capacity 3126 3126 3202
Production 2555 2540 2614
Demand 2774 2841 2914
Imports 219 301 300
2014 -15 Capacity estimated 3.4 MMTPA
Caustic Soda Major Producers in India
Company Capacity (kT)
Aditya Birla Group 493
Gujarat Alkali 413
DSCL 275
Reliance Industries 168
Sree Rayalaseema 124
The Andhra Sugars 132
Kanoria Chemicals 128
DCW Ltd. 100
Others 1,369
Total 3,202
PULP & PAPER 15%
ALUMINA 14%
ORGANICS 12% INORGANICS
8%
SOAPS & DETERGENTS
7%
TEXTILES 21%
WATER TREATMENT 3%
DYES & INKS 3%
PESTICIDES 1%
PHARMACEUTICALS 0%
OTHERS 16%
CAUSTIC SODA - SECTOR WISE CONSUMPTION (%)-INDIA
INDIA ALUMINA
20142016
capacity
6820
10070
ALUMINA CAPACITY ‘000 MT 2014 2016
2014
2016
DEMAND
670
930
CAUSTIC DEMAND FOR ALUMINA ‘000 DMT 2014 2016
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010-11 2011-12 2012-13 2013-14
134,190
112,699
126,439
153,327
17,230 72,143
92,716
90,700
34,858
7,352
82,630 62,627
Other Iran Saudi Arabia
186,279 DMT 192,194 DMT 301,275 DMT 300,635 DMT
Antidumping Duty on Caustic Soda in India
Countries on which antidumping duty applicable USA : $ 55.96/DMT
EU : If landed value below $415.46/DMT
South Korea : Nil to landed value below $366/DMT
China : If landed value below $401/DMT
Saudi Arabia : Nil to $ 133.6/DMT
Thailand : If landed value below $379
Norway : If landed value below $379
Taiwan : If landed value below $361
Iran : Nil to $8.75/DMT Countries on which antidumping duty was applicable in past but currently exempt; Japan
Qatar
Indonesia
Indian Caustic Soda Scenario
The major end-users of Caustic Soda in India are paper/pulp/manmade fibers/alumina
25% of total installed capacity of 3.20 MMT per annum is used captively while rest are for merchant trade
There are around 37 caustic soda units spread across India and most of it under 100,000 MTPA
All Mercury plants excepting one have been successfully converted to Membrane in line with pollution requirements
The level of integration in India is very low as compared to West Europe and North America, which have an integration
level of about 86% and 52%, respectively. While plants outside India are Chlorine centric, plants in India are
Caustic centric.
Outlook for the Industry
- North America : Shale gas low energy cost will bring new capacities and expansions of Chlor alkali
- South America : New capacities/expansion of Alumina, Paper/Pulp capacities will increase demand for Caustic Soda
- Europe : Outlook not good due high production cost and weak economy.
- Asia : Few regional expansions expected to cover the regional demand increase in Chlorine (As EDC) and Caustic Soda
- China : Will remain burdened due high capacity, low operating rate, slowing economic growth. Will need a boost to turnaround.
GLOBAL OUTLOOK AND CONCLUSION
- Middle East : New Alumina capacities in that region will consume part of Caustic produced and reduce export volume. For Iran, due to sanctions India will continue to remain the best netback market.
- India: No new major Chloralkali capacity expected due lack of Chlorine outlet. With increasing Alumina capacity in Eastern India and insufficient local availability, there will be a major import demand for Caustic Soda in that region.
- Antidumping duty on most of the logistically competitive sources will add burden to the Alumina industry.
Founded in 1996
30 Local Offices
280+ Employees
28 nationalities speaking 22 languages
Trading & Distribution of Chemicals & Polymers
Leader in Caustic, Styrene, Xylenes & Pygas
About Tricon
Global Coverage – Local Presence
Curiosity for new products Passion for new places Creativity for new services
“Tricon’s evolution is the result of the commitment of its partners to expand into additional markets
and support new product lines and industries, but always keeping our people as the core of our strategy. As a result, the employee base, the
number of offices, and the quantity and quality of our business keeps growing year after year.”
Ignacio Torras, CEO
Future
Thank you
Dhanyawad