Liquid Chlorine Demand in India to Grow at a CAGR of 6.2% by 2030
by Chem Analyst Chemical Database PriceAccording to ChemAnalyst report,
“India Liquid Chlorine Market: Plant Capacity, Production, Operating
Efficiency, Technology, Process, Demand & Supply, Application, End Use,
Distribution Channel, Region, Competition, Trade, Customer & Price
Intelligence Market Analysis, 2015-2030”,
India’s Liquid Chlorine market is anticipated to grow at a healthy CAGR of 6.2% during the forecast period on
account of rising demand for Polyvinyl Chloride (PVC) pipes, electrical wires
and tubing from the construction sector due to rapid urbanization supported by
factors like the Indian government’s Smart City Mission. Moreover, rising Liquid
Chlorine and Chlorine derivatives demand from the pharmaceutical and
agrochemical industries is likely to give a boost to the Liquid Chlorine
industry over the coming years.
Browse Complete Report : Liquid
Chlorine Suppliers in India
Caustic soda and Chlorine are produced
as the co-products in the electrolysis of sodium chloride solution. More than
half of the Liquid Chlorine produced in the country is used for the production
of PVC resins which are used for manufacturing pipes & fittings for use in
Agriculture & Construction sectors in India. The continued focus of the
Indian government on the development of infrastructure such as the development
of Smart Cities, rural housing, Agricultural-assets and other initiatives like
investments in rural sanitation are expected to fuel growth of the PVC industry
in India over the next several years. PVC is also used in automobile,
packaging, electrical/electronic and healthcare applications. These factors
will dominantly drive the Liquid Chlorine market in the forecast period. Other
key drivers for growth of the Liquid Chlorine demand are the use in Chlorinated
Paraffin Wax (CPW) which impart flame retardant properties to the PVC products and
for manufacturing of pesticides and insecticides such as BHC and DDT. Demand
for Liquid Chlorine derivatives like Chloromethanes which are widely used in
pharmaceuticals, and refrigerant gases will further propel the Liquid Chlorine
market in the forecast period.
However, sudden outbreak of
COVID-19 which led to extended national lockdown in India, severely affected
the Chlor-Alkali industry which remained hard hit as construction activities
remained stalled for most of Q4 FY20. Battered by the demand downturn, several
Chlor-Alkali producers like GACL, Grasim and Meghmani had to shut their
manufacturing units while others announced operational cuts up to 40% to deal
with lengthening inventories. Chlorine prices are strongly driven by the domestic
demand-supply factors, hence local players reported contracted margins
throughout the fourth quarter. However, strengthening consumption of Liquid
Chlorine for water treatment purposes due to government’s active measures to
maintain safe hygiene practices during the pandemic, supported the stable price
trend. Moreover, with ease in lockdown restrictions and resumption of downstream
activities, demand for Liquid Chlorine and its derivatives is expected to rise to
appreciable levels.
According to ChemAnalyst report, “India Liquid Chlorine Market:
Plant Capacity, Production, Operating Efficiency, Technology, Process, Demand
& Supply, Application, End Use, Distribution Channel, Region, Competition,
Trade, Customer & Price Intelligence Market Analysis, 2015-2030”,
major players operating in India’s Liquid Chlorine market are Gujarat Alkali
and Chemicals Limited, Grasim Industries Limited, DCM Shriram Consolidated
Limited, Meghmani Organics Limited, Tata Chemicals Limited, Nirma Limited,
Chemplast Sanmar Limited, Sree Rayalaseema Alkalies And Chemicals Limited,
Chemfab Alkalis Limited and Lords Chloro Alkali Limited. In FY19, DCM Shriram
Ltd. commissioned a 60 TPD Aluminium Chloride plant at Bharuch with an
investment of about INR 31 crore in order to expand the portfolio of its Chlorine
downstream products. Similarly, several Indian companies are planning to
improve capacity utilizations in the coming years with gradual improvement in
the domestic Liquid Chlorine market with addition of downstream industries.
“Since Liquid Chlorine is a bulk
commodity, its demand has been strongly driven by the domestic demand-supply
scenario. A big drop in India’s GDP due to economic slowdown caused due to the
COVID-19 crisis is indicative of lesser downstream demand in the next few
quarters. However, as the Indian construction industry is expected to reach $738.5
bn by 2022, the Liquid Chlorine demand forecast for manufacturing PVC resin seems
highly optimistic. However, challenges associated to the storage and
transportation of Liquid Chlorine make the domestic Chlor-Alkali producers run
their plants based on the local Chlorine demand. Hence, if Chlorine demand
rises, they would simultaneously have to rise the volumes of Caustic Soda which
is its co-product. The vinyl industry is the single largest consumer of
Chlorine produced in India and hence increasing downstream investments can
offer valuable options and be the key drivers for the Liquid Chlorine market in
the forecast period. Moreover, since most of the Chlorine production is
“localized”, encouraging local entrepreneurs to explore possibilities like
investment in Chlorine Derivate products like Chlorinated Paraffin Wax (CPW)
will further expand the domestic Liquid Chlorine industry. Since acute
volatility in its prices is one of the key concerns of domestic Liquid Chlorine
producers, it is important to understand the market dynamics and the associated
threats that may hamper the profitability of the Chlor-Alkali companies.” said Mr. Karan Chechi, Research
Director with TechSci Research, a research based global management consulting firm
promoting ChemAnalyst.
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Created on Jun 26th 2020 08:45. Viewed 257 times.