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According to ChemAnalyst report, “India Phthalic Anhydride Market: Plant Capacity, Production, Operating Efficiency, Process, Technology, End Use, Application, Demand & Supply, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, India Phthalic Anhydride market grew at a CAGR of around 6.50% during 2015-2019 and is anticipated to grow at a healthy CAGR during the forecast period. Increasing demand for plasticizers in electrical insulations and films backed by strong demand for Polyvinyl Chloride (PVC) pipes in agriculture sector will drive the Phthalic Anhydride market in the forecast period. Moreover, India’s strong urbanization and infrastructural growth and government’s active promotion of ‘Make in India’ scheme will give a strong boost to the India PAN market in the coming years.

Browse Complete Report : https://www.chemanalyst.com/industry-report/india-phthalic-anhydride-market-84

Phthalic Anhydride (PAN) is a colorless crystalline solid, mostly produced by catalytic oxidation of Ortho–Xylene or Naphthalene. As the feedstocks are derivatives of crude oil, PAN prices fluctuate strongly with crude oil values. PAN is used as an intermediate in production of Plasticizers, Alkyd Resins, Unsaturated Polyester Resins (UPR) and Copper Pthalocyanine (CPC). Plasticizers hold the largest market share (about 70%) in the India Phthalic Anhydride market due to phenomenal rise in the Polyvinyl Chloride demand from construction and automobile industries. Plasticizers such as Dioctyl Phthalate (DOP), dioctyl terephthalate (DOTP), DINP (DiIsoNonyl Phthalate) etc. impart viscosity, flexibility, softness, and offer protection against the effects of weathering and temperature to the finished product. Hence, they are widely used for manufacturing cables or films. The second largest consumers of PAN are Unsaturated Polyester Resins (UPRs) which are popularly used for manufacturing fibreglass-reinforced resins which find versatile applications in the construction and marine industry. UPRs are followed by Alkyd Resins and CPC pigments, which are used in solvent-based surface coatings and inks. Due to its versatile applications, demand for Phthalic Anhydride is likely to spike to unprecedented levels with India’s strong vision of becoming a global manufacturing hub.

However, sudden outbreak of COVID-19 has adversely impacted the global economy and crumbled the crude futures. Hammered by the economic slowdown as several downstream industries remained shut due to extended lockdown, Phthalic Anhydride market remained dull for most of the final quarter of 2020. In India, PAN is mainly utilized for producing plasticizers, coatings and dyes. Undue halt across all these sectors and lack of manpower affected the overall PAN sales causing local producers like TMC to announce temporary plant shutdowns. Moreover, trade restrictions across borders gave another blow to the PAN importers. As an outcome of the unprecedented fall in demand, Phthalic Anhydride CIF India prices averaged around $710 per tonne in the month of March, nearly $100/tonne below its pre pandemic levels.

According to ChemAnalyst report, “India Phthalic Anhydride Market: Plant Capacity, Production, Operating Efficiency, Process, Technology, End Use, Application, Demand & Supply, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, the key players operating in Phthalic Anhydride market are IG Petrochemicals Limited (IGPL), Thirumalai Chemicals Limited and SI Group-India Limited. BASF, Shandong Hongxin, ExxonMobil Chemical, LG Petrochemical, Hanwha Chemical Corporation, OCI Company Limited, Aekyung Petrochemical Co. are some of the international players operating in the India Phthalic Anhydride market. IG petrochemicals dominate the domestic market with a share of almost 50 per cent and holds three manufacturing facilities in the country. Scheduled capacity addition plans of the domestic players will further strengthen the Phthalic Anhydride market in the country. For e.g. IG Petrochemicals, is planning to double its turnover by FY21 with the completion of its brownfield expansion project worth INR 300 crore. The company is planning to add another PAN plant of 53 KTPA to its current capacity of 170 KTPA by 2021 and enter the league of top three PAN manufacturers in the world. Moreover, KLJ Plasticizers Ltd. is also planning to venture into Phthalic Anhydride production with a 200 KTPA plant likely to be commissioned in FY21.

“The Phthalic Anhydride market is strongly driven by the country’s PVC sector which moves parallel to the country’s economic growth. The outbreak of COVID-19 brought the country’s economic activity to a standstill for almost 2 months (April & March). However, since the government is now planning to ‘Unlock’ the country, PAN market players are anticipating gradual recovery in demand patterns. In addition, the government of India recently proposed 15% “Covid tax” on all the imported chemicals and petrochemicals to protect the domestic industry from undue dumping of goods from international competitors. The Government of India has recently implemented a safeguard duty of 7.5% on South Korean imports for a period of about 200 days. This has given a ray of hope to the domestic PAN manufacturers who were already injured due to cheaper imports from South Korea. Moreover, government’s ‘Make in India’ initiative would propel the demand for Phthalic Anhydride in the forecast period. Looking at the market scenario, local players are optimistic and anticipate the market to grow at the 9 per cent over the next five years. The PAN prices are highly susceptible to crude oil and India’s demand-supply scenario. Hence, to deal with the pandemic woes, it has become extremely important for players to analyse ways to strengthen their balance sheets by evaluating planned short-term shutdowns and analyse volatility in Orthoxylene prices. Moreover, benefiting from the lack of trust on Chinese products, local players can actively plan for their capacity additions and devise forward integration strategies. “, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.

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Source : ChemAnalyst