Chlor-Alkali Market Overview. Ramakant Bhat Indian Petrochem 2014

Transcription

1 Chlor-Alkali Market Overview Ramakant Bhat Indian Petrochem 2014

2 Contents Chlor-Alkali introduction Global Chlor-Alkali Industry Chlor-Alkali Industry in China & India Outlook for the Industry About Tricon Energy Ltd

3 Chlor-Alkali Chemistry

4 Chlor-Alkali : key segment in Inorganic chemicals Used in a wide array of sectors including chemicals & petrochemicals

5 Caustic & Soda Ash >60% of Inorganic Chemicals Others Aluminium Fluoride Caustic Soda Soda Ash Inorganic Chemicals Carbon Black Calcium Carbide TiO2 Sulphuric Acid

6 Caustic Soda & Chlorine Applications

7 Global Chlor-Alkali Industry

8 Global Caustic Soda Capacity (MMTS) 2.5 3% 3.4 4% % 3% 3% Europe % % 1% N. America 16 19% 0.1 0% [VALUE] 2.4% China 40 46% 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

9 ECU COST REGION WISE (USD) U.S West Euro Mid East NEA China Var. Exp. + Fixed Steam Salt Electricity

10 Alumina 60% CAUSTIC SODA SECTOR WISE CONSUMPTION Water Treatment 5% Inorganics 13% Others 23% Detergents/ Textiles 15% Pulp & Paper 15% Organics 17% Alumina 12% Growth in key user sectors likely to continue to fueling demand Segment Avg Growth Alumina 5.90% Detergent & Textiles 5.50% Organics 4.40% Water Treatment 4.30% Caustic Soda Total 4% Inorganic 3.40% Others 3.20% 2013 Global Caustic Demand 70 MM MT Other 15% Pulp 25% Pulp & Paper 2.20% 2013 Global Net Exports = 5.5 Mil DMT driven by alumina & pulp sectors

11 CAUSTIC SODA GLOBAL TRADE FLOW Global Trade is approx. 13 Mil DMT

12 Caustic Soda movement within Asia

13 China Caustic Soda Capacity 40 MMTS HEILONGJIANG m dmt BEIJING JILIN XINJIANG GANSU QINGHAI XIZANG (TIBET) Manufacturer Port Domestic Producer SICHUAN YUNNAN INNER MONGOLIA NINGXIA SHAANXI GUIZHOU GUANGXI HAINAN LIAONING TIANJIN TIANJIN HEBEI SHANDONG QINGDAO SHANXI SHANDONG JIANGSU HENAN SHANGHAI SHANGHAI HUBEI ANHUI NINGBO ZHEJIANG JIANG HUNAN XI FUJIAN GUANG DONG DONG TAIWAN HONGKONG HONGKONG MACAU m dmt m dmt 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 m dmt m dmt

14 China Caustic Soda Production (MMTS) China Production China Capacity

15 Chlor-Alkali Industry in India

16 India Caustic Soda capacity DMT DMT DMT Capacity Production Demand Imports Capacity estimated 3.4 MMTPA

17 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

18 CAUSTIC SODA - SECTOR WISE CONSUMPTION (%)-INDIA ALUMINA 14% ORGANICS 12% INORGANICS 8% SOAPS & DETERGENTS 7% PULP & PAPER 15% OTHERS 16% TEXTILES 21% PHARMACEUTICALS DYES & INKS 0% PESTICIDES 1% 3% WATER TREATMENT 3%

19 INDIA ALUMINA ALUMINA CAPACITY 000 MT CAUSTIC DEMAND FOR ALUMINA 000 DMT capacity DEMAND

20 186,279 DMT 192,194 DMT 301,275 DMT 300,635 DMT 100% 7,352 90% 34,858 82,630 62,627 80% 17,230 72,143 70% 90,700 60% 92,716 50% 40% 134,190 30% 20% 112, , ,327 10% 0% Other Iran Saudi Arabia

21 Antidumping Duty on Caustic Soda in India Countries on which antidumping duty applicable USA EU South Korea China Saudi Arabia Thailand : If landed value below $379 Norway : If landed value below $379 : $ 55.96/DMT : If landed value below $415.46/DMT : Nil to landed value below $366/DMT : If landed value below $401/DMT : Nil to $ 133.6/DMT 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

22 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.

23 Outlook for the Industry

24 GLOBAL OUTLOOK AND CONCLUSION - 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.

25 - 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.

26 About Tricon Founded in Local Offices 280+ Employees 28 nationalities speaking 22 languages Trading & Distribution of Chemicals & Polymers Leader in Caustic, Styrene, Xylenes & Pygas

27 Global Coverage Local Presence

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29 Future 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

30 Thank you Dhanyawad