Chemicals

India’s Ethanol Output Improving Yet a Large Deficit Continues

The demand for ethanol in India continues to soar on the back of government’s plan to increase mandatory blending. Per the latest statistics, the domestic sugar mill industry achieved a production figure of around 1.12 billion liters during the last sugarcane season of 2015-16, around 65% more than the previous season. Despite record production, it continues to be significantly insufficient for blending purposes due to a deficit of around 900 million liters as of the end of 2016. The ethanol blending demand is further set to rise in the coming years, with ambitious targets set by the government of India to increase ethanol blending from 10% to 22.5%.

US Manufacturing – A Revival at the Cost of Global Trade

With less than a month in office, the Trump administration has already made significant policy changes, first of which was an executive order pulling the US out of the Trans-Pacific Partnership deal. This will impact trade in Asia and throw further doubts over the future of the 12-nation Trans-Pacific Partnership Agreement.

Methanol Overcapacity in the U.S. – An Opportunity for Buyers?

The U.S. methanol market has been under severe pressure over the last few years due to a significant increase in capacity; thus transforming itself from a net importer to a net exporter. The shale gas boom in the U.S. has kick-started a resurgence in petrochemicals and has resulted in massive expansions in methanol production which, in turn, is impacting the domestic and global markets significantly. Methanol production has more than doubled since the beginning of 2015 and has become a pivotal point of the global industry.

Asian Petrochemical Producers Prepare for the Middle East Wave

Petrochemical producers across Asia are preparing themselves for competition with a new wave of material from the Middle East that is expected to hit the Asian shore soon. As new Middle East production is targeted towards Asian buyers, Asian producers are investigating a range of feedstock and technology options to help them compete in terms of cost and to maintain a strong foothold in the already crowded global market.

Propane: Key Shifts in the U.S. Domestic Market

U.S. exports of propane have increased fivefold since 2011 and surged 10 percent in April 2016 as compared to last year. The increase in export activities has made the U.S. a dominant force in the propane market after the shale gas boom.

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