Scoping of local markets for large corporate; HSBC, CMB-LLC Division

Abstract

China and India are recording healthy growth in demand for chemicals, including petrochemicals. While demand growth recovers in US, the recovery is' insipid in the European Region. In this background, Indian chemical sector looks forward to healthy growth in domestic offtake, and better shipments to the global markets. With demand growth accelerating, the chemical sector is regaining pricing power. However, costs too rise, especially that· of crude oil based derivatives. Frontline players are focused on moving up the value chain, increasing exports an.d are also amidst forward and / or backward integration, besides expansion of capacities to improve their global competitiveness and enhance their reven'ues and profitability. While the production index of chemical and production has scale down in February 2010, strong growth was witnessed in February 2010 in production of dyes and pigments (including reactive dyes, organic Optical whitening agent, organic pigments, azo dyes etc), phosphatic fertilizers, nylon tyre cord, sulpha drugs, methanol etc.