Chemical Intermediate Market Global Insight 2019, Latest Innovations, Competitive Analysis, New Business Strategies and Growth Forecast 2022

Mar 14, 2019

Global Chemical Intermediate Market Information-by Type (Reagents, Solvents, Building Blocks, Protective Groups), Application (Pharmaceuticals, Automotive, Agriculture), Form (Liquid, Solid and Gaseous) and Region - Forecast to 2022

Pune, India - March 14, 2019 /MarketersMedia/ —

Chemical Intermediate Market – Overview

Chemical Intermediates are also known as commodity chemicals, and are manufactured on a large scale to serve as feedstock for a host of downstream, upstream and specialty chemicals. Chemicals Intermediate is much diversified industry and covers more than 80,000 commercial products in the market. It provides key building blocks for the industries such as pharmaceuticals textiles automobiles, paints, papers, soaps, detergents among many others. The Global Chemical Intermediate Market is expected to grow at healthy annual increment which is driven by demand from end use industries. The industry is increasingly shifting towards Asia Pacific region in line with the shift of its key consumer industries such as automotive, electronics to leverage higher manufacturing competitiveness of emerging economies and to serve the increasing demand from consumer. As a result of this shift, China is the largest contributor and accounted largest share followed by European Union and North America to the Global Chemical Intermediate Market.

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Competitive Landscape:

The report analyses the degree of competition among the industry players as well as industry growth and market scenario in India and the world. The Global Chemical Intermediate Market is at a growing stage, which represents moderate stats in terms of market value and overall volume. Over the past few years, Chemical Intermediate Market has witnessed healthy demand from end use industries such as pharmaceuticals textiles automobiles, paints, papers, soaps, detergents. Globally market for chemical intermediate is fragmented and it is moving towards growth expansion by specifically adopting partnership, expansion and joint-venture strategies and product launch strategies.

Industry/ Innovation/ Related News:

March 2016 – BASF completed its two-step capacity expansion for the chemical intermediate 1,4-butanediol (BDO) by approximately 20 percent at its Verbund site in Geismar, Louisiana during the first quarter of 2016. The double-digit million-dollar investment increased production capacity by implementing measures to boost efficiency and improve infrastructure. With this expansion, BASF planned to strengthen the position in the North and South American markets and reliably meet the customers’ growing chemical intermediate demand from local asset in Geismar. In addition to this, BASF is investing in various products in North America, most recently in formic acid to expand the strong presence in the market and the commitment to the customers. BASF is Tire-1 Company in intermediate chemical market and the expansion strategy of BASF would definitely fuel the global intermediate chemical market.

September 2017 – Intermediate chemicals major Deepak Nitrite has set an ambitious target to achieve USD1 billion turnover in the next three to four years, with its upcoming rupees1,400-crore phenol-acetone facility at Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) in Dahej, Gujarat.the company is setting up the country’s largest phenol-acetone plant at Dahej PCPIR with capacity of about 200,000 tonnes per annum. Once this project is commissioned, it will trigger a lot of new opportunities for intermediate chemical market in India.

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November 2017 – Dutch specialty chemicals and coatings producer AkzoNobel completed an expansion effort at its Boxing, China surface chemicals plant to enable the site to produce a wider range of products. The capacity expansion of AkzoNobel in Asia would notonly boost the intermediate chemical market in the region but it would also help AkzoNobel to increase their Asia Pacific market share.

Chemical Intermediate Market - India

Indian Chemical Intermediate Market is estimated to grow above average annual growth rate of the world market. Globally, India ranks 14th in exports and 8th in imports of chemicals. India's Chemical Intermediate trade is negative with export being significantly lower than the import. Regionally, western India has been the dominant region contributing approx. 50% to the Gross Value Added (GVA) for the Chemical Intermediate sector.

Several initiatives taken by Government of India will support the growth of chemical industry in India. One of such initiative is 'Make in India'. This initiative is expected to foster growth in Indian chemical intermediate market by allowing duty rationalization for skill development, feedstock, improving infrastructure and tax incentives for R&D investments. Approval of the GST bill is another key reform which is expected to lower logistics cost by 10-15% and create a unified market across the country. The launch of Single Window Interface for Facilitating Trade (SWIFT) by government would help importers or exporters to file a common integrated declaration, instead of 9 forms across 6 agencies.

The R&D investment and facility of Indian companies have been limited traditionally, but the situation is changing slowly with more and more companies looking at R&D as a key source of staying in competitive environment of Chemical Intermediate Market in India. The investment in R&D for Indian companies is expected to grow above 2% of the total revenue, thereby help to innovate them the product in the market. The industry is also observing increasing tie-ups with academia which will facilitate the technology / applied research further.

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