Cosmetic Industry Round Up (24/04/16 to 29/04/16)

Indian beauty and wellness industry is anticipated to be double in the coming years. Indian beauty industry is growing with a very fats rate of knot. Even in the great recession time when consumers are much price conscious they never stop to spend on the cosmetic products. So in today’s environment of rising per capita incomes the beauty business is booming.

Now a days to look good is necessary and to spend on beauty products is necessity. Presently demand for skin care and hair products are growing with a rapid pace. This growth is being driven in part by a generally increasing awareness of the importance of skin care, but also specifically due to an increase in the market for men.

Presently in India so many trends are driving the growth of beauty segment. Organic products produced in a sustainable manner and greater availability of information about the benefits are driving growth, Parents are willing to pay a premium to make sure their kids have the proper skin protection which is source of increased demand of baby products.

With the attractive products and low cost offers demand for cosmetic items growing rapidly. On the back of this Indian beauty industry will have effective opportunities for remarkable growth in near term also.

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Sources :- http://www.globalchemicalprice.com/industry-overview/cosmetic-industry-round-up-24-04-16-to-29-04-16

China may have to implement aggressive policies to boost the economy

Experts have suggested that China may have to implement aggressive policies to prevent its economy from collapsing any further, especially considering how the official purchasing managers’ index (PMI) has slipped into a contractionary mode.
 

The PMI is a barometer of an economy’s manufacturing activities and China’s PMI has declined for the fourth successive month in January to 49.8, down from 50.1 in December 2014.
 

The last time China’s PMI went below the 50 mark was in September 2012. The demand in the manufacturing sector is considerably weak and more aggressive monetary policies will be required to prevent a sharp decline in growth.
 

In 2008-2009, China implemented a yuan 4000 billion economic growth plan to prevent global financial crisis, which targeted the housing, rural infrastructure, transportation, health and education sectors, and in 2012 China approved 60 infrastructure projects worth over CNY1000 billion.
 

China is one of the top two biggest economies in the world and is a major market for petrochemical imports in Asia, but China reported the slowest annual growth in 24 years in 2014 at 7.4 per cent as a result of sluggish domestic demand and volatile exports. The country also witnessed a decline in revenue growth since 1991 last year at 8.6 per cent.
 

HSBC reported its January PMI for China and recorded a lower reading of 49.7, down from 49.8 but slightly higher than 49.6 in the previous month.
Chinese manufacturers have witnessed a decline in operating conditions at the start of the current year, and though output increased ever so slightly and new orders started trickling in, but staffing levels were reduced for the fifteenth consecutive month.
 

And reduced client demand has forced firms to cut their stock holdings of both post- and pre-production goods in January. Experts suggest that China may turn to fine tuning its policies instead of implementing an aggressive economic stimulus programme. This stance may only increase commodity demand and prices for a short period of time.
 

China’s commodity demand is expected to increase this year as the government continues to focus on a consumption-led economy.
 

China’s central bank- the People’s Bank of China may probably slash its one-year lending rates by 25 base points to 5.35 per cent in the first quarter of 2015.
 

A report also showed that most sub-indexes have declined, including new orders and new export orders. New orders index has declined by 0.2 points to 50.2 in January and the production sub-index by 0.5 to 51.7. Purchasing volumes index also declined by 0.5 to 49.6 in January. While, new export orders index dropped by 0.7 from the previous month to 48.4, and imports index slipped 1.4 lower at 46.4.

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Optimal usage of agrochemical key to raise food yield of India

Over the next two decades India is set to observe its largest ever phase of urbanisation and would like to keep food security without a scratch by promoting optimal usage of agrochemicals as a key to raise food yield of India. As per the industry experts the major plunge to the process of urbanisation is likely to confer through greater migration to cities with people looking for better opportunities and rising literacy. Moreover, in order to provide accommodation to the rural Indians who are moving out of small towns and villages in seek of better opportunities and growth the new government has precisely put an emphasis on creating new cities.

By expanding the urban space it is explicable that rural land will rapidly be guzzled amid rising pressure on existing cities and improved shove on creating new urban centre. However, this trend in past two decades has now already been seen as a Special Economic Zones (SEZs), industries, new residential localities and an expressway which stands on what were once known as lush green fields growing crops.

According to one of the researched report, in the four decades from 1971 to 2008 urban population of India had gone up by nearly 230 million and now it is anticipated to take only half this time to add the next 250 million. Moreover before the urban expansion, India was on the cusp of a never seen.

Furthermore, the production of food grain in India in the year 2011-12 had recorded 259.29 million tons, however the production of food grain has to be ensuring with rise in per hectare, as we have a glance at the scenario where the land which is under cultivation will decline with an instantaneous increase in population. Nevertheless, the boost in the production in order to congregate the budding need for food grains that can be achieved solitary through larger prominence on agrochemicals and their astute use.

As per the industry experts, aimed at sustaining agricultural practices the agrochemical consist of a wide range of chemical compounds, which contains insecticides to fight against insect attacks, herbicides to root out unwanted weeds that becomes parasites on the key crop and slow down yields, pesticides to protect the crop from pests and rodents and fungicides to prevent loss of crop owing to disease infestation.

However, through promoting optimum use of insecticides and pesticides and rising yield per hectare and minimising loss, one can plan to keep our food security intact in the next two decades as it is of utmost importance.

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Asia the key driver of growth for petrochemical sector of Qatar

Qatar which is known as one of the largest liquefied natural gas producer of the world has branch out its exports away from the oil and gas sector and amid demand from the region fuelling investment and expansion projects, Asia remains an important driver of growth for petrochemical sector of Qatar. Moreover in the Gulf region it is the second largest exporter of chemicals representing 17% of total chemical exports of Gulf Cooperation Council (GCC),as per the Gulf Petrochemicals & Chemicals Association.

According to the Ministry of Development Planning and Statistics, supplies of energy to widen their industrial bases are being used by countries like Qatar and to enhance exports of non-energy goods such as chemicals with petrochemicals and refining activity building up to 40% of manufacturing output.

By the year 2020, plans are taking place to invest around USD 25 billion in petrochemical capacity to produce 23 million tons, in compare to the capacity 16.8 million tons produced in the year 2012, which clutches the rights to market, sell and distribute chemical and polymer products of Qatar globally, according to the industry experts.

As per the recent researched reports, one of the long-term expansion plans has been embarked by the petrochemical industry, based on the assumption that the demand from other emerging markets such as India and China will continue to develop. Whereas the second major expansion process is the USD 6.5 billion Al Karaana plant, which is 80:20 joint venture between the state-owned Qatar Petroleum and Shell, that is due to come on line in the year 2018. The Al Karaana unit will have a production capacity of 2 million tons that will add 25% petrochemical output to Qatar.

However, after an annulment of the USD 6 billion Al Sejeel petrochemicals plant the long-term outlook is less certain but by the end of the decade one of the megaprojects has been targeted to come on line. According to the industry experts, in the medium term prospects for petrochemicals producers are positive, that are helped by the rising demand and the sluggish velocity of new capacity being brought on line in North America.

Moreover, the demand of for high-density polyethylene has significantly increased above global GDP growth for a short time and Asia is noted for the strongest demand growth. Whereas over the next five years the demand growth for high density polyethylene in China is expected to somewhat slow down and is still expected to be above 6%. Moreover the unrelenting growth coupled with moderately few new capacity additions of China is expected to impel rising exports in particularly from the Middle East.

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Toxin Benzene in Hookah boost risk for leukemia

Hookah which is an ancient form of smoking is quickly gaining popularity amidst adolescents, as per recent studies as they consider hookahs to be safe, however the recent study has found toxic Benzene in the fumes that come from the water pipes. This toxic Benzene has led to an increase in risk of leukemia which is a group of cancers that by and large commences in the bone marrow and results in high numbers of abnormal white blood cells.

As per the reports, the use of burning charcoal is involved in hookah smoking which is needed to heat the hookah tobacco in order to generate the smoke that the smoker inhales. In addition to it carcinogens and toxicants that are inhaled are found in hookah tobacco smoke and moreover large quantities of charcoal carcinogenic emissions and combustion-generated toxic are also inhaled by hookah smokers and nonsmokers who socialize with hookah smokers.

Furthermore, Moassel which is the sweetened and flavored tobacco is noted as one of the most popular kind of hookah tobacco that consist of around 30% tobacco fermented with fruits mixed with glycerin and chemical flavors and molasses.

In the year 2013 in US few researchers found that at some point in time around 23.2% of female and 26.6% of male college students have used hookah. According to few researchers, as the practice of hookah smokings is often seen in social settings and have examined an uptake of Benzene in both hookah smokers and non-smokers who have been presented at hookah social events.

Moreover, S-phenylmercapturic acid (SPMA) which is a metabolite of Benzene have been found in both hookah smokers and non-smokers and the uptake of SPMA in smokers have augmented to 4.2-fold after smoking hookah tobacco at a hookah lounge, whereas on the other hand for non-smokers it has increased to 2.6-fold after attending an event at a hookah lounge.

However, research analysts call for intercessions to diminish or thwart the use of hookah tobacco, regulatory actions to limit hookah-related exposure to toxicants including Benzene, and comprise of hookah smoking in clean indoor air legislation, as they believe that there is no safe level of exposure to Benzene.

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Sanctions against Iran persists, Britain will not encourage Iran trade

In the conference which was held on 15^th – 16^th October, 2014 is noted as one of the largest gathering of Iranian commercial officials which takes place in London. The conference which took place last month in October, 2014 aim to attract capital, which Iran badly needs owing to its long isolation under international sanctions. On the other hand, as world powers endeavor to achieve a deal with Iran on its nuclear programme sooner than its deadline on 24^th November, 2014, the Europe-Iran Forum is being held at a politically susceptible moment.

According to the sources, Britain still does not persuade to trade with Iran and has withdrawn all the commercial support for trade, in spite of an easing of tensions, since Iranian President Hassan Rouhani has sighted as a realistic member of the clergy, in 2013 it succeeded the fiercely anti-Western Mahmoud Ahmadinejad.

Nevertheless, the country wants to diversify beyond pharmaceuticals to oil from technology to everything, amid a population of close to 80 million and more of its young people going into higher education.

According to one of the researched report, in the year 2015 the Iranian economy in the current fiscal year will rise up to 1.5% mounting to 2.2% and this rise marks a ricochet from a 1.9% decline in 2013. But before the sanctions bit it remains far from 5% growth rates achieved.

Nevertheless, isolation of Iran remains far over for all the improvement in the diplomatic mood under Rouhani. Last year in 2013, Tehran struck a preliminary nuclear agreement with the world powers which is known as the P5+1 (the United States, United Kingdom, Germany, France, Russia, and China, facilitated by the European Union), endearing a limited slackening of the sanctions. However the country made a little progress before the deadline on reaching a final settlement was being discussed in New York in the month of September, 2014.

According to the industry expert, a major investment attraction is being represented by Iran through a liquid and well-developed stock market and diversified economy, however this achievement of Iran might take some time.

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Global crop yields may slowdown

Over the next two decades we may witness a slowdown in the growth of crop yields around the globe, thanks to climate change. In the next 20 years climate change will make it extremely difficult for crop yield to meet the ever-increasing demand.

New research indicates that the possibility of a major slowdown in the production of wheat and corn, despite the warming climate, is highly unlikely. However, the risk to crop yields is about 20 times higher and this would require environmental organizations as well as establishments affected by international food availability and price to formulate strategic plans.

Researchers used computer models of global climate and information about weather and crops to estimate the chances that climatic change would impact crop yields in the coming years. They stated that climatic trends would have a negative effect of 10 per cent on yields. This would have a significant impact on food supply. Growth in crop yields would continue but the slowdown would bring down the rate of growth by half as demand increases sharply.

Researchers found that the odds of natural shifts in climate causing slowdown over the next 20 years are 1 only in 200. However, when human-induced global warming was taken into account, the chances rose to 1 in 10 for corn and 1 in 20 for wheat.

Yield of crops like wheat and corn have risen by 1-2 per cent in the past few years and the global production of major crops is expected to hit 13 per cent per decade through 2030. The rise in global crop production during the next two decades can be attributed to population growth, increased per-capita food consumption and growing use of biofuels.

Researchers relied on simulation from an NCAR-based climate model as well as other models to figure out changes in temperature and precipitation over the next two decades for crop-intensive areas in the context of increasing carbon dioxide. They also made use of the same model simulations without human-induced increases in carbon dioxide to estimate trends in a natural climate.

They also performed statistical analysis to assess the effects if change in temperature and precipitation on yields of wheat and corn in different parts of the world and during specific times of the year.

The researchers affirmed that warming climate would lead to reduced yields. We can try and reduce the impact of changing climate by growing wheat and corn in cooler regions, however the researchers didn’t find sufficient evidence which could prove that adaptation strategies (changes in growing practices or crop varieties) would balance the impact of warming climate.

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Toxic chemicals used in lotions may prove harmful for human health

In today’s generation many people are found using various types of cosmetic products on to their skin for a softer, fairer and smooth skin. With the upcoming of different brands most of the individuals nowadays prefer to pick and choose the best brand for their skin. However, they are not aware of harmful chemicals such as toxic chemicals used while making the cosmetic products, which at a later stage can destroy overall health. These toxic chemicals that are being used in the products can cause disease like tumors and cancer, and also cause dryness and irritation to the human skin.

Nowadays, most of the branded companies have come up with various lotions for smoother, softer and moist skin throughout the year and for all types season. The uses of hand or body lotions are mostly seen during winter as less moisture is present in air.

According to reports, in today’s world apart from various cosmetic product lotions have also become an essential accessory, which is applied several times a day. Moreover, lotion is basically prepared to treat the unbroken skin which reprieves the skin short term only. However in the long run, it in fact makes the problems worse as number of hand lotions contain toxic chemicals which over a time period get accumulated in increasingly greater amounts in the fatty tissues and liver and thus cause problems in long term.

Most of the lotions are a mixture of oil-in-water with a use of a matter such as cetearyl alcohol, to keep the mixture together, however the water-in-oil lotions are also formulated. Most of the common chemicals which are found in commercial hand lotion consist of mineral oil, parabens (propylparaben, ethylparaben, methylparaben), alcohols, aluminum and other petroleum products which are known to cause skin irritation and dryness. These chemicals that have been applied via lotion onto the skin are absorbed directly into the blood stream.

Toxic chemicals like Paraben and Petroleum affect the overall health of human bodies causing disease like cancer and tumors. Paraben chemical which is used in lotions gets accumulated in the human body affecting the liver, breasts and fatty tissues and are also known for causing dry, irritation and sensitizing skin and also triggering allergic reactions.

Whereas according to the researched studies, cancerous tumors and long-term dryness of skin are caused by petroleum chemical. As per analysts, quite a number of people don’t bother to go through the ingredients list on their cosmetic and other products.

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Chemicals & Fertilisers Minister emphasize action points for Ministry

With the coming of new government, on 28th May, 2014 Chemicals& Fertilisers Minister Mr. Ananth Kumar who took charge had said that petrochemical hubs has been schedule to set up in Tamil Nadu, Assam and Orissa and to gain momentum and in order to make the country self-dependent on the widely used soil nutrient, necessary measures will be taken by the government to revive the sick urea manufacturing plants. Furthermore he stresses that the government should also plans to stimulate all closed urea plants and make the country self-reliant in fertiliser supply.

The Chemicals & Fertilisers Minister Mr. Ananth Kumar for his ministry on taking charge have stressed on three actions which is to set up petrochemical hubs in a hastening efforts in Assam, Orissa and Tamilnadu, plummeting the costs of medicines by over 25% and ensuring ample & appropriate supply of fertilisers to farmers and reinforcement of all closed urea plants.

In the year 2013, the global economic growth of fertiliser industry had been quite inadequate, whereas in 2014 the growth of world economic activity was seen as recuperating. Since mid 1990s the fertiliser sector had not seen any momentous growth to capacity for making urea which is noted as the most important fertiliser and for improving the domestic availability of fertilisers can only meet up by encouraging new projects particularly by existing manufacturers, however in last two decades demand and import of fertiliser has soared high. With the slowdown of growth in China towards 7% will affect many other countries especially the commodity exports. In the year 2014-15, highest growth rates have been projected in the emerging economies particularly in Indonesia, China and India.

Furthermore with the formation of the new government, the new Chemicals & Fertilisers Minister assures the farmers that there will be no shortage of urea in the coming kharif season. As per the sources, India produces nearly 22 million tonnes of urea whereas the annual domestic demand is about 30 million tonnes. According the market outline, the Ministry of Chemicals and Fertilizers are struggling to pay out subsidies and the demand of India continues to remain under pressure, moreover the demand of fertiliser may possibly collision with a nascent weakening rupee and inadequate monsoons season. Hence an innovative and comprehensive policy for fertiliser sector is needed.

For more than a decade the creation of chemical manufacturing hubs in coastal India is an idea that has been languished and only one petrochemical hub ONGC has taken off in Dahej which has commissioned a world-scale cracker and is will considerably boost the availability of raw materials for downstream processing. However diminutive progresses have been made by four other clusters in Orissa, Andhra Pradesh, Karnataka and Tamil Nadu not a great deal exists aside plans on paper. Moreover, to improve the battered image of the Indian chemical industry, the scheduled growth will be served.

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Fertiliser industry is in wait and watch stance for several policy changes

India’s one of the leadings players – chemicals and fertiliser sector, ought to endeavor amid top five chemicals and petrochemical industries and most of the fertiliser manufactures have taken a stance of wait-and-watch to explore more options to boost investments. In last few decades, in fertiliser industry very less of investments have taken place due to one after the crisis. According to the sources, natural gas which is a preferred raw material for urea manufacturing has significantly showed rise in the prices.

Moreover, natural gas is one of the most efficient and cleaner fuel & raw material when it comes to the production of ammonia, however with the inadequate availability of gas few urea producers were forced to use alternate liquid feedstock to keep their plants running at curtailed rates, whereas few manufactures have vigorously shutdown their plants. According to the sources, on 1st July, 2014 the oil ministry had passed a note to the cabinet demanding a fresh formula for gas price and will likely fragment the formula of Rangarajan for decisive domestic natural gas price.

According to the industry experts, the pricing formula that pushed the gas prices higher as suggested by the Rangarajan panel will be juggled around on certain elements by the government. Furthermore, the domestic prices through most calculations are expected to be double in near future from around USD 4.2/mBtu to around USD 8/mBtu from July, 2014.

Moreover, as per the sources to revive fertilizer plants several Indian public-sector companies are getting together that are also undertakings. Major fertiliser manufacturers of India Rashtriya Chemicals & Fertilizers Ltd., GAIL India and Coal India Ltd., will revive the Talcher unit of Fertilizer Corp of India by investing USD 1.3 billion with an aim of producing

1.2 million tons/annum of ammonium nitrate and urea. Furthermore according to the researched report, Rashtriya Chemicals & Fertilizers Ltd. which is noted as one of the leading producers of fertilizers in India will aim to double its turnover in the next five years.

However, Ananth Kumar the Union Minister for Chemicals, Petrochemicals and Fertilisers on 4th July, 2014 had announced that at present there are no such plans to boost the prices of urea or cut the subsidies and the market of urea is currently tamed and valued at the cost of Rs. 5,360 a ton. In addition to it Ananth Kumar has pointed out that his ministry had sought good reason of more incentives and taxes in the imminent Budget for the fertilisers, petrochemicals and chemicals sector.

As per the sources, China is one the first country to use coal based ammonia production which is probably one of the aggressive methods, however the country has also produced methanol for olefins by using coal as a primary hydrocarbon resource. 

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China’s shale gas production to enter its booming years

Chinese shale gas industry is about to enter its booming years, made possible by China National Petroleum Corp and Sinopec Group. These two oil and gas companies enabled the nation’s shale output to hit 200 million cubic meters in 2013.

Shale gas production in China is expected to reach 1.5 billion cubic meters this year. China has made significant breakthroughs in the unconventional oil and gas exploration sector. 

In 2013, at the Chongqing Fuling shale gas block Sinopec averaged single well output of 150,000 cubic meters per day. The company is hoping to reach an annual production of 1 billion cubic meters by the end of this year. 

CNPC has commercialized shale gas output of 70 million cubic meters from Changning-Weiyuan block in Sichuan province, Zhaotong block in Yunnan and the Fushun-Yongchuan block in Sichuan. Based on the current development level these Chinese companies have managed to achieve will help increase domestic shale gas capacity.

However, there are analysts who are not so upbeat about the future. China is expected to consume nearly 170 billion cubic meters of natural gas in 2014. And even if the country manages to accomplish the goal, all the production cannot be used for society as it requires well-developed pipeline infrastructure and other supporting facilities. 

Low utilization rate and issues in upstream exploration will hinder the industry’s forward march.

The greatest hindrance is the lack of a method that can be used for most shale gas blocks in China. For instance, Sinopec’s technology for the Chongqing Fuling block cannot be used for other blocks.

Other major concerns include groundwater exploitation and contamination. Furthermore, China’s geological conditions are very different from those in the US- world’s biggest shale gas producer.
Majority of the shale gas blocks in China are in mountainous regions, which makes it extremely difficult to bring in huge fracturing equipments necessary to extract gas.
Shale gas exploration requires huge quantities of fresh water and technology available at present hasn’t been able to address this issue. Fresh water once used in shale gas extraction can’t be cleared for residential use and removing fluids from reservoirs can lead to surface subsidence.

These challenges have been limiting the growth of the shale gas industry. Companies are also reluctant to carry out operations in blocks they won from the bidding. 

Drilling a well can cost around 100 million yuan, which still cannot assure that shale gas will be found. Thus, the high cost and the inherent risks in shale gas exploration have deterred Chinese companies from making any big moves. The reluctance of the companies has also prevented any further bids.

China’s shale gas boom, however, has brought about opportunities for some machinery manufacturers. For instance, Yantai Jereh Oilfield Services Group Co Ltd has been trying to manufacture fracturing equipment suitable to China’s geological contours. This company is the only Chinese firm to supply shale gas equipment to North American companies. Jereh, recently, started developing machines meant specifically for Chinese projects. Their equipments can be used in areas with poor roads and uneven land.

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Chemical waste can been recycled and reused

Waste disposed at the industries clusters can be recycled in a great way as it can be reused to make new products, however, if these waste are not recycled than new products are made by hauling out fresh raw material from the earth through mining and forestry process. Chemical materials like plastic, glass and aluminum can be recycled and can be used in manufacturing other products. For chemical industry, treating waste discharge is a mandatory requirement for using it to make useful products which requires innovative thinking. Aluminum which is a cheaper chemical produced using recycled and scraps aluminum instead of using ores.

Nowadays, recycled products are on augment by many consumers and major industries have adopted this stance and most of the manufacturers are facing mounting pressure to provide products from recycled materials. Carpet manufacturers are also facing this pressure. Major chemical producers such as Honeywell/Allied Signal and DSM Chemicals have developed new technology which can help to recycle approximately 1.8 million tons of nylon carpet each year. This technology allows nylon manufacturers to recover and reuse caprolactam which is a raw material used to make nylon 6.

The recycled materials used in manufacturing process considerably take less energy than required for producing new products from raw material. On the contrary, more energy is saved as extra energy is required to extort, refine, transport and process ready raw material for industry in compare with providing industry ready material.

This process of recycling diminishes the need for mining, quarrying and logging, refining and processing raw materials as each one creates substantial air and water pollution. It also helps in saving energy and cuts down greenhouse gas production which in turn embarks upon the climate change. Currently, recycling in UK has projected to save more than 18 million tonnes of C02 a year which is equivalent of taking 5 million cars off the road.

According to the Tata Strategic Management Group (TSMG) report, approximately 20% of global effluents are liable for the chemical industry, even though it accounts for only 3% of global chemicals industries. Consequently several chemical companies have started to explore green chemistry based routes of synthesis to depose wastage and optimize the usage of raw material consumption.

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Asian buyers reduce imports of Iranian oil

The Western sanctions imposed upon Iran in mid-2012 led to declining oil revenues and a wobbly economy. If sanctions on the Islamic Republic are fully lifted, Tehran will have to persevere to regain the share of world oil markets it lost.

iran oil

Six countries namely China, Japan, Taiwan, India, Turkey and South Korea continue purchasing Iranian crude, but under exemption from US financial sanctions for which they have to reduce import of Iranian oil.

Since the sanctions came into force, Iran has lost market share in all these countries. Taiwan’s import volumes are rather small and inconsistent. Combined imports of crude oil from Iran by China, Japan and South Korea hit 1.09 million bpd in 2011, a year before the sanctions came into force. In 2013, the combined imports were at 740,000 bpd- a decline of 33.27 per cent from the 2011 level.

Over the same period, the combined total crude import volume by the 3 countries was at 14.81 million bpd in 2013 compared to 11.18 million bpd in 2011, a rise of 32.43 per cent from the 2011 level.

Iran is the only nation with declining volumes, whereas other suppliers increased volumes. For instance, Saudi Arabia increased supply by 4.66 per cent, whereas Russia raised supply by 39.6 per cent. Russia has been delivering larger volumes to Asia- the perfect market for its ESPO crude blend considering demand and logistics. After Russia, the biggest increase in supplies was from Kuwait, Iraq and Oman.

In 2011, combined imports of Saudi crude by the 3 countries stood at 2.895 million bpd. In 2012, Saudi raised supply by 7.36 per cent to 3.108 million bpd. In 2013, Saudi reduced volumes by 2.5 per cent to 3.03 million bpd. Imports from the UAE also increased by over 10 per cent to 1.325 million bpd in the previous year from 1.2 million bpd in 2011 and 2012.

In 2011-13, imports from Qatar to Japan and South Korea increased from 634,000 bpd to 700,000 bpd- a rise of 10.41 per cent.

Imports from Oman rose by 22.9 per cent to 601,000 bpd in the previous year from 489,000 bpd in 2011. In Iraq, imports increased from 620,000 bpd in 2011 to 784,000 bpd in 2013- a rise of 26.25 per cent. Iraq’s supply increase was concentrated on China.

Iraqi imports increased to 472,000 bpd in 2013 from 277,000 bpd in 2011. Japan’s import of crude oil from Iraq declined to 63,000 bpd fro, 99,000 bpd- a drop of 36 per cent between 2011 and 2013. While South Korea’s imports of Iraqi crude, at 249,000 bpd in 2013, showed little change.

Combined crude imports from Kuwait increased to 882,000 bpd in 2013 from 753,000 bpd in 2011- an increase of 17.13 per cent. For Saudi Arabia the greatest year-on-year percentage increase was in 2012, when imports from Kuwait increased by 21.78 per cent to 917,000 bpd. However, between 2012 and 2013 import volume declined by 3.82 per cent.

Saudi Arabia, Qatar, Iraq, Kuwait and the UAE increased supply to China, Japan and South Korea by 516,000 bpd between 2011 and 2013.

Volume increase from Gulf exporters, including Oman, over the 2011-2013 period stood at 728,000 bpd, almost double the 369,000 bpd volume by which imports from Iran declined.

China witnessed increased supply from two other OPEC producers. Supply from Angola increased from 626,000 bpd in 2011 to 804,000 bpd in 2013, an increase of 28.43 per cent. Venezuela also raised supply from 231,000 bpd in 2011 to 316,000 bpd in 2013, an increase of 36.8 per cent.

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Outlook on Indian petrochemical industry

In the year 2013, Indian petrochemical industry was significantly affected by an economic slowdown and the depreciation of the Indian currency. The Indian petrochemical producers are optimistic about the outlook of Indian petrochemical industry in near future. A number of investments are begin made by various state-owned energy companies to boost their petrochemical activities and are also expecting to become a major players in the petrochemical industry.

Indian petrochemical industry

Several petrochemical producers have scheduled to expand their production capacity at their plants, which will slow and steadily fill the gap between domestic and supply. However, as per the industry sources, comparatively, limited new domestic capacity is projected to come on-stream and as a result, import threats from Mideast and East Asian producers remain noteworthy for Indian producers.

According to the market experts, in the recent year the overall outlook petrochemical industry in India is somewhat more positive as the augmentation in GDP and industrial output is anticipated to be higher in year 2014 in compare to the previous year. Since November 2013 the market condition had been buoyant and double digit growth is expected to grow in the ending of the FY15.

The Indian petrochemical and downstream industries were drastically affected by the fall of the Indian currency. This fall in Indian currency were directly impacted on the converter industry in India, as the values of majority of petrochemical products in India were based on an import parity price. In the fiscal year 2012, one of major petrochemical producers Indian Oil had reported revenue of almost USD 2.5 billion in compare to the previous fiscal year. Currently the total revenue of petrochemical business of Indian Oil accounts for about 3.5% and in the next few year the company is planning to increase the share of petrochemicals in the overall revenue.

During past three year, the economic growth in India is once again increasing after a slowdown and as per the estimates done by the research analyst, in the fiscal year ending 31st March 2014, the GDP growth rate of India will increase from 4.6% to 5.4% and 6.3% in the fiscal 2015. According to the market experts, the long term growth outlook of Indian petrochemical industry is likely to remain optimistic and during 2013, the demand growth in India was low in compare to the prior year. As the manufacturing sector is struggling the market experts do not expect the single digit growth rate to considerably improve in the near future.

Nearly few major petrochemical manufactures have scheduled to build up new petrochemical plants at their units. Indian Oil and BP which is one of the major petrochemical manufactures are planning to start a new Acetic Acid plant in Gujarat. The plant will be having production capacity of 1 million mt/year and will be one of the largest Acetic acid plants in Gujarat, India. This plant is a joint venture between Indian Oil and BP and the firm would be investing nearly USD 1 billion for setting up the facility near Koyali refinery of IOC. The acetic acid facility which is located in Vadodara city is expected to begin its operational in 2017. Indian Oil is also studying a number of projects based on refinery propylene at Koyali.

Another petrochemical major ONGC Mangalore Petrochemicals Ltd. is building an aromatics complex in the 

Mangalore special economic zone (SEZ). The OMPL is promoted by ONGC and Mangalore Refinery and Petrochemicals Ltd. is a subsidiary of ONGC. The Aromatics complex will be producing Paraxylene with production capacity of 900,000 mt/year, Benzene with about 300,000 mt/year and the plant is expected to starts its operational in the fiscal year ending March 2015.

Two major petrochemical industry Ineos and Sinopec have signed a joint venture agreement and the Articles of Association to form a 50-50 joint venture company at Nanjing on Tuesday. The joint venture will be called Ineos YPC Phenol Nanjing Co. which will set to build the largest Phenol-Acetone plant in China and will have a total investment of approximately USD 0.5 billion (RMB 3.15 billion) and is expected to start its operation by the end of 2016. The plant will be located Nanjing Chemical Industrial Park and the annual capacity of the new plant will be at least 400,000 tonnes of Phenol and 250,000 tonnes of Acetone. The complex will also include 550,000 mt/year of cumene capacity. This joint venture is the largest investment of Ineos in China and the eighth joint venture of Sinopec Yangzi Petrochemical Company.

Global Petrochemical manufacturer – Reliance to expand its production capacity at two major petrochemical plants based in Dahej and Jamnagar. The company will commission PTA plant located at Dahej around 1.1 million mt/year in the third quarter of 2014 which is followed by another plant of the same capacity within six months. However, the total production capacity of PTA will be 4.3 million mt/year, which will make the company the fifth largest producer of PTA in the world. In the year 2015, the company is likely to build Ethylene plant at Jamnagar. The commercial start up of the plant is expected to start in the second half of 2015. The plant situated at Jamnagar will have a production capacity of 1.5 million mt/year.

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Syria’s oil and gas production may take years to recover

The ongoing hostilities between the Syrian government and the rebels have made it impossible for the nation’s oil and gas production to recover in the near term. Oil production in Syria has dropped drastically since March 2011 primarily due to the conflict and also due to the imposition of Western sanctions, which has led to loss of oil export revenues.

Even Syria’s natural gas production has been adversely affected, although not as significantly as oil, but dry gas production has declined by nearly 30 per cent compared with pre-conflict production levels.

Analysts estimate that Syria’s oil and gas production may take months even years to recover. Even when the fighting subsides, it would probably take a while for the Syrian domestic energy system to reach pre-conflict levels. Production and export of crude oil has fallen dramatically. Syria is also facing supply shortages for some refined products.

Syria’s proven oil reserves are estimated to stand at 2.5 billion bbl, larger than all of Syria’s neighbours except for Iraq.

During 2008-10 Syria’s oil production was more than 400,000 bpd. However, in January the country’s oil production was estimated at less than 25,000 bpd. In 2014, production also included production outside control of the Syrian government. In late 2013, the Syrian government lost control of nearly all of the nation’s key oil fields. Rebels had managed to seize control of Syria’s oil and gas resources.

Majority of the international oil firms involved in Syria’s energy sector have terminated operations. The oil companies currently operating in Syria are Hayan Petroleum and the Elba Petroleum Co. However, these firms are operating without their IOC partners. In December 2013, the Syrian government and the Russian company SoyuzNefeGaz signed a 25-year exploration agreement in Block 2 offshore.

Although the oil fields have escaped damage from the violence and clashes, oil production has been stopped because of insufficient export opportunities and limited refining capacity.

Syria is facing serious issues in importing petroleum products and is also experiencing shortage of heating oil and diesel fuel. The shortfalls are expected to continue.

Currently, Syrian refineries are being operated at reduced rates. Syria has refineries in Hams and Banias and the combined capacity of both the refineries has fallen to half of their pre-conflict production levels.

Plans to set up new refineries are either on hold or have been cancelled. For instance, the proposed 100,000 bpd facility at Abu Khashab was cancelled due to widespread anarchy in the country.

In 2012, Syria’s consumption of products was below 260,000bpd. Experts believe that consumption in 2013 will be even lower.

The Syrian government continues to subsidize domestic use of petroleum products. The government spent over $1 billion on petroleum subsidies in the first half of 2013.

Thus, the future of Syrian energy sector appears rather bleak at the moment.

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Perfumes laced with chemicals?

A recent study has worried numerous perfume lovers, including me. The report revealed that fragrances often consist of hormone-disrupting chemicals and chemicals that could cause allergic reactions. Major perfume brands have not even bothered to mention the ingredients they use in their products. Consumers take into consideration only the brand, reading the product label is deemed unnecessary.

Perfume brands are allowed to use any chemical to manufacture fragrances, with no required safety assessments, and are not even obligated to reveal the ingredients. Cosmetics can reach consumers without pre-approval. Public awareness on how hazardous low-level toxins are is extremely low. Experts have found nearly 14 hidden chemicals in several popular fragrances, including American Eagle’s Seventy-Seven, Dolce & Gabbana Light Blue, Coco Mademoiselle Chanel and Calvin Klein Eternity. Majority of these chemicals are unstudied and unregulated.

The products that were tested comprised of 10 sensitizers, which are chemicals that can cause allergic reactions such as wheezing, asthma, headaches etc. These products also consisted of 12 hormone-disrupting chemicals. Low-dose exposure to toxic chemicals can lead to long-term health issues.
The commonly found chemicals in perfumes are:-

ACETONE – found in cologne, dishwashing liquid and detergent, nail enamel remover etc. Long-term exposure to this chemical can cause coma, dryness of the mouth and throat, dizziness, nausea, slurred speech etc. It acts as a central nervous system depressant.

BENZALDEHYDE – found in perfume, cologne, hairspray, laundry bleach, deodorants, detergent, Vaseline lotion, shaving cream, shampoo, bar soap, dishwasher detergent etc. This chemical can cause kidney damage, irritation to the throat, mouth, eyes, skin, lungs etc.

BENZYL ACETATE- found in perfume, cologne, shampoo, fabric softener, stickup air freshener, dishwashing liquid and detergent, soap, hairspray, bleach, after shave, deodorants. It is carcinogenic and can cause irritation to respiratory passages, eyes, skin etc.

BENZYL ALCOHOL - found in perfume, cologne, soap, shampoo, nail enamel remover, air freshener, laundry bleach and detergent, Vaseline lotion, deodorants, fabric softener.  Exposure to this chemical may lead to headache, nausea, dizziness, drop in blood pressure and respiratory failure.

CAMPHOR – found in perfume, shaving cream, nail enamel, fabric softener, dishwasher detergent, nail colour, stickup air freshener.  It is a central nervous system depressant and is readily absorbed through body tissues. It may cause irritation of eyes, throat, dizziness, nausea, convulsions etc.

ETHANOL –found in perfume, hairspray, shampoo, fabric softener, dishwashing liquid and detergent, laundry detergent, shaving cream, soap, Vaseline lotion, air fresheners, nail colour and remover, paint and varnish remover. Inhalation of ethanol vapours may lead to drowsiness, impaired vision, ataxia, CNS disorder, fatigue etc.

ETHYL ACETATE – found in after shave, cologne, perfume, shampoo, nail colour, nail enamel remover, fabric softener, dishwashing liquid. It can cause irritation to the eyes and the respiratory tract. It may also cause headache, anaemia, damage to liver and kidneys.

LIMONENE –found in perfume, cologne, disinfectant spray, bar soap, shaving cream, deodorants, nail colour and remover, fabric softener, dishwashing liquid, air fresheners, after shave, bleach, paint and varnish remover. It is carcinogenic and can cause irritation to eyes and skin.

LINALOOL –found in perfume, cologne, bar soap, shampoo, hand lotion, nail enamel remover, hairspray, laundry detergent, dishwashing liquid, Vaseline lotion, air fresheners, bleach powder, fabric softener, shaving cream, after shave, solid deodorant. Exposure to this chemical can lead to CNS disorder.

METHYLENE CHLORIDE – found in shampoo, cologne, paint and varnish remover. This chemical has been banned by the FDA. It is carcinogenic and can lead to headache, giddiness, irritability, CNS disorder etc.   

a-PINENE – found in bar and liquid soap, cologne, perfume, shaving cream, deodorants, dishwashing liquid, air freshener. This chemical is damaging to the immune system.

g-TERPINENE – found in cologne, perfume, soap, shaving cream, deodorant, air freshener. It may cause asthma and CNS disorder.

a-TERPINEOL – found in perfume, cologne, laundry detergent, bleach powder, laundry bleach, fabric softener, stickup air freshener, Vaseline lotion, cologne, soap, hairspray, after shave, roll-on deodorant. It can cause irritation to mucous membranes, hypothermia, ataxia, CNS and respiratory depression and headache.
Manufacturers need to divulge what’s in their products, eliminate use of hazardous chemicals and ensure safety of chemicals before putting them into their products.

The need for legislations that would overhaul outdated cosmetics oversight and regulation has become absolutely essential. Consumers have a right to know that the products they use are as safe as possible. 

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