Indian chemical exports rise 7% between Apr 2019-Jan 2020

MOSCOW (MRC) -- India’s chemical exports rose by 7% to Rs 2.68 lakh crore (USD35.2 billion) during April-January period of the last fiscal, and became the top exporting sector in the country for the first time, reported Kemicalinfo with reference to the government's statement on Saturday.

"Union Minister of Chemicals and Fertilisers DV Sadananda Gowda congratulated the chemicals and petrochemicals industry on becoming the top exporting sector of the country for the first time," an official statement said.

Gowda informed that during April 2019-January 2020, the export of chemicals grew by 7.43% over the corresponding period of the previous fiscal.

"Total export of chemicals during this period reached Rs 2.68 lakh crore (USD35.2 billion). This constitutes 14.35% of the total exports," it added.

The minister assured full support to the industry towards making India a leading global hub for manufacturing of chemicals and petrochemicals.

"Continuous efforts made by my Department of Chemicals and Petrochemicals have enabled the industry to become the top most exporting segment for the first time," the Union Minister of Chemicals and Fertilisers said in a tweet.

As MRC informed earlier, India to consider imposing a 15% "Covid-19" import tax on chemicals to help protect its domestic industry from major exporting nations in East and SE Asia. The domestic industry has been badly affected by a major demand slump as a result of nationwide coronavirus lockdown. The proposed tax will be added in addition to current import duties. The committee is also proposing that all duties and taxes on exports be refunded for domestic manufacturers.

With possible exemptions for ethylene, paraxylene (PX), ethylene dichloride (EDC) and vinyl chloride monomer (VCM), the recommendation covers all other chemicals and petrochemicals imported by India.

India is a major chemicals importer, including polymers, monomers and solvents. If introduced, the new tax would impact domestic importers and distributors.

EDC and VCM are the main feedstocks for the production of polyvinyl chloride (PVC).

According to MRC's DataScope report, exports of suspension polyvinyl chloride (SPVC) from Russia totalled 45,600 tonnes in the first three months of 2020, down by 4% year on year. Imports increased, but still remained at a low level.
MRC

MOSCOW (MRC) -- German chemicals maker Covestro reported an 89% plunge in quarterly profit on Wednesday, hurt by weak demand in China due to coronavirus pandemic-driven production disruptions and as strong competition led to a decline in products prices, said Reuters.

The former Bayer unit, whose main customers include the automotive industry and electronics manufacturers, said its first-quarter net income attributable to shareholders dropped to 20 million euros (USD21.69 million).

Covestro, however, confirmed the preliminary figure for first-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA).

As MRC informed earlier, Covestro has successfully closed the sale of its European polycarbonates (PC) sheets business to the Munich-based Serafin Group effective January 2, 2020. This includes key management and sales functions throughout Europe as well as production sites in Belgium and Italy.

According to MRC's ScanPlast report, overall estimated consumption of PC granules totalled 12,600 tonnes in the Russian market in January-February 2020 (excluding imports and exports to/from Belarus), compared to 9,600 tonnes a year earlier. Demand increased by 31%.

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc. With 2018 sales of EUR 14.6 billion, Covestro has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018.
MRC

1. Portugese Galp sees further pandemic damage, third-quarter recovery still uncertain

MOSCOW (MRC) -- Portugal’s Galp Energia said the collapse in demand caused by the coronavirus pandemic was set to further impact its performance in the second quarter as it slashed its planned investment for this year by about half, according to Hydrocarbonprocessing. Galp, which reported a 72% slump in first-quarter net profit to 29 million euros (USD31 million) from a year earlier, said that although a recovery in the third quarter of 2020 remained uncertain, it was “prepared to adapt quickly if that is to happen sooner and stronger than expected”.

MRC

MOSCOW (MRC) -- Russia's output of products from polymers grew in March 2020 by 8.3% year on year. And this figure increased by 9% year on year in the first three months of 2020, reported MRC analysts.

According to the Russian Federal State Statistics Service, March production of unreinforced and non-combined films rose to 110,400 tonnes from 100,300 tonnes a month earlier. Output of films products grew in the first three months of 2020 by 15.5% year on year to 2965,200 tonnes.

Last month's production of non-porous boards, sheets and films increased to 34,200 tonnes from 32,000 tonnes in February. Thus, overall output of these products reached 94,700 tonnes in January-March 2020, up by 6.9% year on year.

March production of porous boards, sheets and films was 25,400 tonnes, up by 18.5% month on month. Overall output of these products reached 64,300 tonnes in the first three months of 2020, compared to 59,500 tonnes a year earlier.

March production of plastic bottles and flasks grew to 1,796,000 items from 1,553,000 items a month earlier. Overall output of these plastic products totalled 4,901,000,000 units over the stated period, compared to 4,947,000,000 units a year earlier.

Last month's production of polymer pipes, hoses and fittings was 53,900 tonnes versus 46,100 tonnes in February. Overall output of these products was 140,900 tonnes in January-March 2020, up by 27.7% year on year.

March production of sacks and bags from ethylene polymers reached 2,277,000,000 units, compared to 2,550,000,000 units a month earlier. Overall output of these plastic products totalled 6,711,000,000 units in the first three months of 2020, compared to 5,989,000,000 units a year earlier.

Last month's production of linoleum and floor coverings was 11,900,000 square metres, compared to 12,600,000 square metres in February. Overall output of these products totalled 33,300,000 square metres over the stated period versus 28,700,000 square metres a year earlier.

March production of plastic windows and door blocks reached 1,814,000 square metres and 68,400 square metres, respectively, versus 1,556,000 square metres and 65,300 square metres a month earlier. Overall output of these plastic products totalled 5,524,000 square metres and 196,500,000 square metres, respectively, compared to 4,033,000 square metres and 189,400 square metres a year earlier.
MRC

MOSCOW (MRC) -- Overall imports of expandable polystyrene (EPS) to Belarus grew in January-February 2019 by 23% year on year to 1,450 tonnes, according to MRC's DataScope report.

EPS imports into the county fell to 650 tonnes in February from 800 tonnes in January. Imports of material into the Republic of Belarus were 790 tonnes in February 2019.

Russia is the main EPS importer to Belarus.

Imports of Russian material to the Belarusian market rose in the first two months of 2020 by 22% year on year: from 650 tonnes in January-February 2019 to 800 tonnes. The share of Russian EPS imports in the total volume of deliveries to the country remained in January-February 2020 almost at the last year's level - 55%.

February shipments of Russian EPS to the region were 477 tonnes versus 318 tonnes in January, whereas imports of material were 469 tonnes in February 2019.

At the same time, the share of imports of Chinese material doubled last year: from 9% (1,000 tonnes) to 18% (2,300 tonnes).

MRC