pricing - Blog - Global Risk Community2024-03-28T16:55:24Zhttps://globalriskcommunity.com/profiles/blogs/feed/tag/pricingAn Interview with UBS: The Impact of COVID on Balance Sheet Structureshttps://globalriskcommunity.com/profiles/blogs/an-interview-with-ubs-the-impact-of-covid-on-balance-sheet-struct2021-09-29T20:21:56.000Z2021-09-29T20:21:56.000ZRia Kiayiahttps://globalriskcommunity.com/members/RiaKiayia<div><img src="https://storage.ning.com/topology/rest/1.0/file/get/9624910470?profile=RESIZE_400x&width=200"></div><div><div id="lp-pom-text-147" class="lp-element lp-pom-text nlh"><p class="lplh-42">An Interview with Erkka Pesonen, Director, ALM Risk Management and FTP, at UBS</p></div><div id="lp-pom-text-148" class="lp-element lp-pom-text nlh"><p>Ahead of the <a href="https://www.marcusevans.com/conferences/ftpmanagement?utm_source=media+partner&utm_medium=grc+blog+post&utm_campaign=CM488+-+grc" target="_blank">11th Annual Funds Transfer Pricing and Balance Sheet Management</a> Conference, we spoke with Erkka Pesonen, Director of ALM Risk Management and FTP at UBS. Erkka works in the Group Treasury ALM team, responsible for FTP setting and methodology and interest rate risk hedging. Prior to his current role Erkka has worked in Treasury cash trading and Treasury funding roles at UBS. He has over ten years of Treasury and Finance experience at UBS in Switzerland and the UK. Erkka has a BSc in Economics from the London School of Economics and he is FCA certified (CISI certification).</p><p><strong>How has the impact of Covid-19 affected balance sheet structures?</strong></p><p>The low rate and credit spread environment post Covid-19 turbulence has been beneficial for issuers. Group Treasuries across the board have printed farther out the curve to benefit from relative flat tenor extension cost. Companies seem to also have taken this opportunity to issue more than planned, as total issuance volumes are reaching record highs this year. Banks have seen deposit growth in ring-fenced entities where customers have been holding cash surpluses as a consequence of COVID related constraints.</p><p><strong>Do the challenges around balance sheet structure vary across different jurisdictions?</strong></p><p>Local regulators impose their interpretation of the Basel requirements and their expert local judgement to their jurisdictions which can create varying binding constraints within a Group. Such variations need to be layered into the internal pricing to accurately reflect the cost of liquidity, funding and capital – which can create a trade-off between technical complexity and pricing/signalling effectiveness.</p><p><strong>Has the product mix need to optimise RWA changed across the last couple of years?</strong></p><p>RWA optimisation is driving constant assessment of the return on capital across the industry – from Risk or Leverage driving the capital requirement, through to other optimisation initiatives and the product mix.</p><p><strong>What could be some future trends with balance sheet structure going forward?</strong></p><p>Main themes will likely remain around optimisation of Liquidity and Funding Metrics, LRD and RWA while navigating the low interest rate environment – and enabling FTP incentivisation mechanisms to account for them.</p><p><strong>What do you hope to gain by attending the Funds Transfer Pricing and Balance Sheet Management event?</strong></p><p>I found the presentations, discussions and the materials that were shared afterwards extremely valuable to take back with me and discuss with my colleagues. I gained new insights to Bank Treasuries’ thoughts on how to best approach regulatory requirements, balance sheet modelling and optimisation.</p><div id="lp-pom-text-189" class="lp-element lp-pom-text nlh"><p><strong>Erkka will be presenting during Day Two!</strong></p></div><div id="lp-pom-box-204" class="lp-element lp-pom-box"><h4><strong>Achieve optimal balance sheet structure in the era of COVID-19</strong></h4><ul><li>Build a balance sheet that takes into account different regulations, focus points and geographies</li><li>Product mix on the balance sheet to optimise RWA: Prioritise products with a low cost of capital </li><li>Examine what the balance sheet looks like on the liability side: Are deposits floored?</li></ul></div><p>For more information about the event, please visit <a href="https://bit.ly/3zUfFpE%C2%A0or">https://bit.ly/3zUfFpE or</a> contact:</p><p>Ria Kiayia, Digital Media and PR Marketing Executive</p><p>T: +357 22849 404<br />E: riak@marcusevanscy.com</p></div></div>BASF Petronas Chemicals to Permanently Shut Butanediol and Derivatives Plant in Kuantan, Directing a Shift to its Business Portfoliohttps://globalriskcommunity.com/profiles/blogs/basf-petronas-chemicals-to-permanently-shut-butanediol-and2020-11-19T11:30:00.000Z2020-11-19T11:30:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p><a href="{{#staticFileLink}}8219693688,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8219693688,original{{/staticFileLink}}" class="align-center" alt="8219693688?profile=original" /></a></p><p>Aiming to restructure its business portfolio for sustained growth, BASF Petronas Chemicals Sdn Bhd (BPC) has announced a permanent turnaround at it Butanediol (BDO) and derivatives plant at Kuantan, Malaysia by March 2021.</p><p><strong>Get more info : <a href="https://www.chemanalyst.com/NewsAndDeals/NewsDetails/basf-petronas-chemicals-to-permanently-shut-butanediol-and-derivatives-plant-in-kuantan-directing-a-shift-to-its-business-portfolio-3408" target="_blank">https://www.chemanalyst.com/NewsAndDeals/NewsDetails/basf-petronas-chemicals-to-permanently-shut-butanediol-and-derivatives-plant-in-kuantan-directing-a-shift-to-its-business-portfolio-3408</a></strong></p><p>BDO and its derivatives are widely utilized to produce polyurethanes, engineering plastics, elastic spandex fibres, and solvents. Consistent capacity additions in the region due to latest investments in advanced coal based BDO manufacturing sites compelled the company to undertake a strategic shift that intends at expanding its future profit margins. For a smooth transition, the company is currently reaching out in support from all its existing customers, meanwhile it is also assuring consistent survive of its other products, promising stability. BASF Petronas Chemicals (BPC) based in Malaysia is a joint venture between BASF and Petronas Chemicals Group Berhad (PCG). Supporting the closure, Managing Director CEO of PCG called it a well-versed move will allow the company for a favourable shift to new segments showcasing potential growth. In addition, the closure is in line with PCG’s mega expansion plans including the setup of specialty chemicals segments and innovating the existing ones using advanced technologies.</p><p>ChemAnalyst predicts that the closure of BPC’s Butanediol plant may not hinder the regional supply but can adhere severe effects to the importing countries based in Asia and Europe. However, with consistent addition and expansion of existing capacities, these effects might nullify in the long run.</p><p></p><p><strong>Source : ChemAnalyst</strong></p></div>A Bird’s Eye View on the Outcome of US Elections on India’s Energy Sectorhttps://globalriskcommunity.com/profiles/blogs/a-bird-s-eye-view-on-the-outcome-of-us-elections-on-india-s2020-11-05T13:00:00.000Z2020-11-05T13:00:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p><a href="{{#staticFileLink}}8219694083,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8219694083,original{{/staticFileLink}}" class="align-center" alt="8219694083?profile=original" /></a></p><p>As US heads towards Presidential Elections, the energy policy makers in India are keeping a close watch on the results which would decide its impact on the India-US ties. While Joe Biden promises strong push towards renewable energy sources, Trump’s victory may strengthen India’s oil, infra and defense sector. As soon as incumbent Donald Trump pulled US out of the Paris climate change agreement, which aims at mitigating the impact of greenhouse gas emissions on the global temperature rise, Biden launched a campaign promising the US to achieve the target of net zero emissions by 2050 and investing USD 1.7 trillion in the next ten years towards actualizing the same.</p><p><strong>Get more info : <a href="https://www.chemanalyst.com/NewsAndDeals/NewsDetails/a-birds-eye-view-on-the-outcome-of-us-elections-on-indias-energy-sector-3399">https://www.chemanalyst.com/NewsAndDeals/NewsDetails/a-birds-eye-view-on-the-outcome-of-us-elections-on-indias-energy-sector-3399</a></strong></p><p>Biden’s proposal sounds well when India has already shifted to fifth gear towards increasing its capacity of clean energy projects. Clean energy projects comprise nearly a fifth of India’s power generation capacity. By March 2022, India is aiming to produce 100 GW energy from its ongoing solar projects and 60 GW from wind power plants. Coming to the oil and gas sector, India has become the fourth largest export destination for the US crude and the fifth-largest consumer of US LNG. India has been already revisiting its crude sourcing strategy amid growing global uncertainties post the COVID-19 outbreak, aiming to protect its consumers from strong fluctuations in the international oil futures.</p><p>The India-US hydrocarbon trade was valued at USD 9.2 billion in FY20. The two countries have also mutually set up a gas task force (GTF) for discussions such as Natural Gas pricing, markets and regulation, investments on gas infrastructure and demand growth. Hydrogen has become a key area of interest for both the parties, with a public-private Hydrogen Task Force being formed towards the same to scale up technologies to produce Hydrogen from renewable energy and fossil fuel sources.</p><p>As per ChemAnalyst, "whatever the outcome, the results would pave the way for India to increase its refining capacity from 250 mtpa to 400 mtpa by 2025 and strengthen its green energy needs to establish the longest-running energy partnership between the two democracies."</p><p><strong>Source : ChemAnalyst</strong></p></div>Are You Satisfied With Cost-based Pricing? Try Target Costing An Alternative Yet More Effective Approach to Pricing Productshttps://globalriskcommunity.com/profiles/blogs/are-you-satisfied-with-cost-based-pricing-try-target-costing-an2020-08-29T05:45:28.000Z2020-08-29T05:45:28.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}8028332067,original{{/staticFileLink}}" target="_blank"><img class="align-right" src="{{#staticFileLink}}8028332067,original{{/staticFileLink}}" alt="8028332067?profile=original" width="400" /></a>Cost-based Pricing is fast becoming a relic of the past and being substituted by the concept of Target Costing. Target Costing is referred to as an organized process to determine the cost at which a proposed product must be developed so as to generate profits at the product’s anticipated selling price in future.</p><p>In highly competitive markets such as FMCG, construction, healthcare, and energy, prices are determined by market forces. Producers cannot effectively control selling prices. The only control, to some extent, is over costs, so management’s focus has to be on influencing every component of product, service, or operational costs.</p><p>Target Costing is a proactive Cost Planning, <a href="https://flevy.com/business-toolkit/cost-management">Cost Management</a>, and <a href="https://flevy.com/business-toolkit/cost-reduction">Cost Reduction</a> practice. Costs are planned and managed out of a product and business early in product life-cycle, rather than during the later stages. The fundamental objective of Target Costing is to make the business profitable in any competitive marketplace. Target Costing is widely used in several industries e.g. manufacturing, energy, healthcare, construction, and a host of others.</p><p>Some key features of Target Costing are:</p><ul><li>Seller is a price taker rather than a price maker.</li><li>The target selling price incorporates desired profit margin.</li><li>Product design, specifications, and customer expectations are built-in while formulating the total selling price.</li><li>Cost reduction and effective cost management is the corner stone of management strategy.</li><li>Target Cost has to be achieved through team collaboration during activities such as designing, purchasing, manufacturing, marketing, and other activities.</li></ul><p>Target Costing presents the following advantages over other product pricing techniques:</p><ul><li>More value delivered to customer since the product is created keeping in mind the expectation of the customer.</li><li>Approach to designing and manufacturing products is market driven.</li><li><a href="https://flevy.com/business-toolkit/competitive-advantage">Competitive Advantage</a> gained through process improvement and product innovation.</li><li>Drastic <a href="https://flevy.com/browse/stream/process-improvement">Process Improvement</a>, which creates economies of scale.</li><li>New market opportunities converted into real savings to achieve the best value for money rather than to simply realize the lowest cost.</li></ul><p>The Target Costing process comprises 3 main phases.</p><ol><li><strong>Market-Driven Target Costing</strong></li><li><strong>Product-Level Target Costing</strong></li><li><strong>Component-Level Target Costing</strong></li></ol><p><strong> <a href="http://https//flevy.com/browse/flevypro/target-costing-5201"><img class="aligncenter size-full wp-image-7291" src="https://flevy.com/blog/wp-content/uploads/2020/08/Target-Costing.png" alt="" width="1002" height="752" /></a></strong></p><p>Let’s discuss the 3 phases briefly.</p><h3><strong>1. Market-Driven Target Costing</strong></h3><p>In this phase, Selling Price is determined by analyzing the entire industry value chain and all functions of the firm. The focus of this costing phase is on analyzing market conditions and determining the company's Profit Margin in order to identify the "Allowable Cost" of a product.</p><p>In this phase, the desired profit level is set on the basis of firm’s strategy and financial goals, and is deducted from Selling Price to obtain Allowable costs. Intensity of competition, nature of customers, similar product introduction by competitors, and level of customer sophistication are the key factors influencing Market-driven Target Costing.</p><h3><strong>2. Product-Level Target Costing</strong></h3><p>In this phase, Allowable Cost only gives a ball-park figure of cost saving to be achieved. It has to be translated into Achievable Target Cost. This type of costing concentrates on designing products that satisfy the company's customers at the Allowable Cost. The cardinal rule of Product-level Target Costing is to never exceed the Target Cost.</p><p>The objective of this Target Costing phase is to create intense but realistic pressure on the product designers to reduce costs. Product Strategy (number of products in the line, frequency of redesign, degree of innovation) and product characteristics (complexity, magnitude of up-front investments, and duration of product development) are the key factors affecting Product-level Target Costing.</p><h3><strong>3. Component- Level Target Costing</strong></h3><p>The Component-level Target Costing settles the price at which a firm is willing to purchase the externally-acquired components being used in its product. This phase involves a cross-functional team that is tasked to reduce costs across all functions such as designing, purchasing, manufacturing, marketing, and other activities.</p><p>The components cost history serves as the starting point for estimating the new component-level target costs alongside optimal selection of suppliers. A supplier-focused strategy is the key factor that influences Component-level Target Costing.</p><p>Interested in learning more about how the <a href="https://flevy.com/browse/flevypro/target-costing-5201">Target Costing process</a> works and its key steps? You can <a href="https://flevy.com/browse/flevypro/target-costing-5201">download an editable PowerPoint on <strong>Target Costing</strong> here</a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><h3><strong>Are you a Management Consultant?</strong></h3><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="http://flevy.com/pro/library">FlevyPro library</a>.</p></div>Tata Chemicals Stock Price Rise for Three Consecutive Days, Margins from the Soda Ash Vertical Stepping Up in the Domestic Markethttps://globalriskcommunity.com/profiles/blogs/tata-chemicals-stock-price-rise-for-three-consecutive-days2020-08-21T17:00:00.000Z2020-08-21T17:00:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p><a href="{{#staticFileLink}}8028333280,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028333280,original{{/staticFileLink}}" class="align-full" alt="8028333280?profile=original" /></a></p><p>Tata Chemicals, an Indian global company dealing with chemicals, crop protection and specialty chemical products, recently revealed its financials for the quarter ending June 2020. As per the results, the company’s standalone net profit slid by 47% to Rs. 109 crore in Q1 June 2020 compared with Rs 206 crore in Q1 June 2019. Revenue from the chemical products segment fell to INR 612.09 crore as against INR 703.39 crore in the last quarter.</p><p> </p><p><strong>Get more info : <a href="https://www.chemanalyst.com/NewsAndDeals/NewsDetails/tata-chemicals-stock-price-rise-for-three-consecutive-days-margins-from-the-soda-ash-vertical-stepping-up-in-the-domestic-market-1330">https://www.chemanalyst.com/NewsAndDeals/NewsDetails/tata-chemicals-stock-price-rise-for-three-consecutive-days-margins-from-the-soda-ash-vertical-stepping-up-in-the-domestic-market-1330</a></strong></p><p></p><p>However, the company’s shares rose for the third consecutive day by about 10% on Thursday i.e. on August 20, 2020. The company’s stock rose nearly 62% from its 52-week low figure of Rs 197.40 recorded on 23 March 2020. The abrupt rise in the stock value has been attributed to its improving performance from its Soda Ash division. Despite unprecedented slowdown in several downstream sectors, the company continued the production and supply of the essential commodities, eagerly adopting the new normal with the aim to keeping itself well positioned in the market and preserve its gross margins. During Q1FY21, the company continued to produce salt without disruption while the production of Soda Ash and Sodium Bicarbonate showed improvement post the initial phases of lockdown due to restart in downstream operations. Tata Chemicals is one of the largest producers of Soda Ash, holding capacity of 4.3 million tonnes per annum. The product is widely used for manufacturing detergents, glass, cleaning products and in several metallurgical applications (such as recycling of aluminium and zinc) etc.</p><p>Soda Ash prices in the domestic market are hovering in the range of INR 24-24.5 per kg and are expected to head towards a brief period of recovery in the month of September.</p><p>Other manufacturers of Soda Ash in the domestic market include Gujarat Heavy Chemicals Ltd (GHCL), Nirma Ltd., DCW Limited (India), etc.</p><p><strong>Source : ChemAnalyst</strong></p></div>Surge in Urea Shipments to India Drives the Global Demand, Turns Market Outlook Positivehttps://globalriskcommunity.com/profiles/blogs/surge-in-urea-shipments-to-india-drives-the-global-demand-turns2020-08-11T16:30:00.000Z2020-08-11T16:30:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p><a href="{{#staticFileLink}}8028331487,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028331487,original{{/staticFileLink}}" class="align-full" alt="8028331487?profile=original" /></a></p><p>India’s Urea consumption has strongly moved the global market in the final quarter with shipments up by approximately 50 percent from April through July 2020. Analysts believe that favorable demand and desirable weather conditions have given a strong push to its Urea consumption in the final quarter.</p><p><strong>Get more info : <a href="https://www.chemanalyst.com/NewsAndDeals/NewsDetails/surge-in-urea-shipments-to-india-drives-the-global-demand-turns-market-outlook-positive-1309">https://www.chemanalyst.com/NewsAndDeals/NewsDetails/surge-in-urea-shipments-to-india-drives-the-global-demand-turns-market-outlook-positive-1309</a></strong></p><p>India state procurement agencies have reported that India has bought about 2.8 million tonnes of Urea via five tenders since April from a leading North American fertilizer manufacturer. The sixth one is expected to close on 10 August. India’s Rashtriya Chemicals & Fertilizers is expected to close a several thousand tonnes import tender also on 10 August for shipment by mid-September. RCF was looking forward to purchase about 1 million tonnes, but there is still a doubt whether the whole quantity can be shipped amid the global supply tightness.</p><p>Looking at stronger than usual Indian demand and limited stock availability, it is being anticipated that the global Urea market will continue to move upwards in the coming months. Urea prices were also seen jumping almost by USD 20 per tonne within this quarter tracing the global trends.</p><p><strong>Source : ChemAnalyst</strong></p></div>India’s IPA and m-Xylene Maintain Price Hikes Buoyed by Prevailing Market Uncertaintieshttps://globalriskcommunity.com/profiles/blogs/india-s-ipa-and-m-xylene-maintain-price-hikes-buoyed-by2020-08-07T16:30:00.000Z2020-08-07T16:30:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p><span>With Indian petrochemical importers seeking alternative sources for their cargoes imported from China, prices of certain petrochemicals have recorded new heights in the past few months. Increased interest of the Indian pharmaceuticals and automotive manufacturers towards boycotting heavily imported Chinese raw materials has given a strong push to the profit margins of domestic players as many of them have recorded healthy gains in the prices of certain petrochemicals based on improved buying indications. </span></p><p><strong>Get more info : <a href="https://www.chemanalyst.com/NewsAndDeals/NewsDetails/indias-ipa-and-m-xylene-maintain-price-hikes-buoyed-by-prevailing-market-uncertaintiesties-1304">https://www.chemanalyst.com/NewsAndDeals/NewsDetails/indias-ipa-and-m-xylene-maintain-price-hikes-buoyed-by-prevailing-market-uncertaintiesties-1304</a></strong></p><p><span>Isopropyl alcohol (IPA) prices remained on the upper edge, although somewhat flatter since last two weeks, hovering around $1266/mt in the week ending 7<sup>th</sup> August. Consistent rise in demand for multiple disinfectant products containing IPA as a result of the coronavirus pandemic remains the key driving factor of the unprecedented price surge in both the Indian and international markets. In its recently revealed financial results for the first quarter ending June, India’s Deepak Fertilisers and Petrochemicals (DFPCL)- the largest and sole manufacturer of IPA in the country, posted a double-digit increase in its net profit to USD 1.2 billion as its IPA sales volume jumped by about 49 per cent year-on-year.</span></p><p><span>While things seem in favor of the domestic IPA market both in terms for demand and supply, domestic m-Xylene is still struggling to get back to norm. With traders highly anxious about market tightness in the beginning of August, m-Xylene prices were assessed around USD 106 per tonne further supported by higher upstream crude and gasoline values.</span></p><p>Prolonged lockdown and trade restrictions have deterred a huge impact on the country’s chemicals supply chains. Traders are finding other trade routes as prevailing reluctance of Indian buyers towards Chinese cargoes may leave a long-term impact on their procurement strategies.</p><p><strong>Source : ChemAnalyst</strong></p></div>Need Help Identifying Growing Markets and Pricing Your Products Right? Refer To Conjoint Analysishttps://globalriskcommunity.com/profiles/blogs/need-help-identifying-growing-markets-and-pricing-your-products2020-07-24T11:45:52.000Z2020-07-24T11:45:52.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}8028328880,original{{/staticFileLink}}" target="_blank"><img class="align-right" src="{{#staticFileLink}}8028328880,original{{/staticFileLink}}" alt="8028328880?profile=original" width="300" /></a>Identifying what the market wants is a critical issue for most executives. Likewise, the decision on how much to charge for a product is also crucial for planners. This is where Market Research comes to rescue.</p><p>One of the Marketing Research methods that researchers most commonly employ is the <a href="https://flevy.com/browse/flevypro/conjoint-analysis-primer-5154"><strong>Conjoint (Trade-off) Analysis</strong></a>. Conjoint Analysis helps in identifying product features that consumers prefer, discerning the impact of price changes on demand, and estimating the probability of product acceptance in the market.</p><p>In contrast to directly inquiring from the respondents about the most important feature in a product, Conjoint Analysis makes the survey participants assess product profiles. These product profiles comprise various linked—or conjoined—product features, therefore the analysis is termed “Conjoint Analysis.” Conjoint Analysis simulates real-world buying situations where the researchers statistically determine the product attributes—that carry the most impact and are attractive to the participants—by substituting the features and recording the participants’ responses.</p><p><strong>The Conjoint Analysis Approach</strong></p><p>The Conjoint Analysis is useful in creating market models to estimate market share, revenue, or profitability. The Conjoint Analysis is widely used in marketing, product management, and operations research. The Conjoint Analysis approach entails the following key steps:</p><ol><li><strong>Determine the Study Type</strong></li><li><strong>Identify Relevant Features</strong></li><li><strong>Establish Values for Each Feature</strong></li><li><strong>Design Questionnaire</strong></li><li><strong>Collect Data</strong></li><li><strong>Analyze Data</strong></li></ol><p><a href="https://flevy.com/browse/flevypro/conjoint-analysis-primer-5154"><img class="aligncenter size-full wp-image-7139" src="https://flevy.com/blog/wp-content/uploads/2020/07/Conjoint-Analysis-Primer.png" alt="" width="1200" height="1080" /></a></p><p><strong>1. Determine the Study Type</strong></p><p>The first step of the Conjoint Analysis involves ascertaining and selecting from a number of different types of Conjoint Analysis methods available. This should be determined based on the individual requirements of the organization.</p><p><strong>2. Identify Relevant Features</strong></p><p>The next step of the Conjoint Analysis entails categorizing the key features or relevant attributes of a product. For instance, setting the main product attributes in terms of size, appearance, price.</p><p><strong>3. Establish Values for Each Feature</strong></p><p>After selecting the key features of the product, the next step in Conjoint Analysis is to choose some values for each of the itemized features that have to be enumerated. A combination of features in different forms should be chosen to present to the participants. The presentation could be written notes describing the products or in the form of pictorial descriptions.</p><p><strong>4. Design Questionnaire</strong></p><p>The basic forms of Conjoint Analysis—practiced in the past—encompassed a set of product features (4 to 5) used to create profiles, displayed to the respondents on individual cards for ranking. These days, different design techniques and automated tools are used to reduce the number of profiles while maintaining enough data availability for analysis. The questionnaire length depends on the number of features to be evaluated and the Conjoint Analysis type employed.</p><p><strong>5. Collect Data</strong></p><p>A statistically viable sample size and accuracy should be considered while planning a Conjoint Analysis survey. It is up to the senior management to decide how they want to gather the responses—by taking the responses from each individual and analyzing them individually, collecting all the responses into a single utility function, or dividing the respondents into segments and recording their preferences.</p><p><strong>6. Analyze Data</strong></p><p>Various econometric and statistical methods are utilized to analyze the data gathered through the Conjoint exercise. This includes linear programming techniques for earlier Conjoint types, linear regression to rate Full-Profile Tasks, and Maximum Likelihood Estimation (MLE) for Choice-based Conjoint.</p><h3><strong>Types of Conjoint Analysis</strong></h3><p>There are a number of Conjoint Analysis types available for the marketing researchers to choose from, including:</p><ol><li>Two-Attribute Tradeoff Analysis</li><li>Full-Profile Conjoint Analysis</li><li>Adaptive Conjoint Analysis</li><li>Choice-Based Conjoint Analysis</li><li>Self-Explicated Conjoint Analysis</li><li>Max-Diff Conjoint Analysis</li><li>Hierarchical Bayes Analysis (HB)</li></ol><p>Interested in learning more about <a href="https://flevy.com/browse/flevypro/conjoint-analysis-primer-5154">Conjoint Analysis</a>? You can download <a href="https://flevy.com/browse/flevypro/conjoint-analysis-primer-5154"><u>an editable PowerPoint on <strong>Conjoint Analysis Primer</strong> here</u></a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><h3><strong>Are you a Management Consultant?</strong></h3><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="http://flevy.com/pro/library">FlevyPro library</a>.</p></div>Liquid Chlorine Demand in India to Grow at a CAGR of 6.2% by 2030https://globalriskcommunity.com/profiles/blogs/liquid-chlorine-demand-in-india-to-grow-at-a-cagr-of-6-2-by-20302020-06-26T14:30:00.000Z2020-06-26T14:30:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p>According to ChemAnalyst report, “<strong>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”,</strong> 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.</p><p><strong>Browse Complete Report :</strong> <strong><a href="https://www.chemanalyst.com/industry-report/india-liquid-chlorine-market-91">Liquid Chlorine Suppliers in India</a></strong></p><p>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. </p><p>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.</p><p>According to ChemAnalyst report, <strong>“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”</strong>, 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.</p><p>“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.</p><p><strong>Source : ChemAnalyst</strong></p></div>Global Pyridine Demand to Witness a Healthy CAGR of 4.95% by 2030https://globalriskcommunity.com/profiles/blogs/global-pyridine-demand-to-witness-a-healthy-cagr-of-4-95-by-20302020-06-25T15:30:00.000Z2020-06-25T15:30:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p>According to ChemAnalyst report,” <strong>Global Pyridine Market - Plant Capacity, Production, Operating Efficiency, Demand & Supply, Grade, End-Use, Type, Sales Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”</strong> The Global Pyridine Market is projected to grow at a CAGR of 4.95% on extensive demand for vitamin B3 additive in pharmaceutical drugs along with food and beverages for adding the nutritious value. Pyridine is a flammable and toxic compound, highly soluble in water and other organic solvents. Continuous surge in utilization of Pyridine for manufacturing agrochemicals such as herbicides and pesticides for improvising the crop growth is anticipated to bolster the demand for Pyridine in the forecast period. In addition, demand for Pyridine as a denaturing agent in antifreeze mixture is anticipated to contribute well to propel its growth in the coming years.</p><p><strong>Browse Complete Report</strong> : <strong><a href="https://www.chemanalyst.com/industry-report/pyridine-market-89">Pyridine Prices, Demand & Supply</a></strong></p><p>Pyridine is actively utilized as a starting ingredient in synthesis of around 20% of the top 200 drugs manufactured in pharmaceutical industry. Initially, it was difficult to synthesize large volumes of Pyridine and get prominent yield by conventional synthesis process. This caused significant decline in profit margins of the pharmaceutical companies as large part of the manufacturing cost was spent in the synthesis of active ingredient. To overcome this hurdle, Virginia Commonwealth University (VCU) Researchers innovated the efficient and novel mechanism for manufacturing of various Pyridine compounds. In this new technology, they have stepped down the five-step batch process of synthesis, to a single continuous step process by incorporating flow reactors. This innovation showcased the cost reduction of synthesis of active ingredient by over 75% and increase in the yield by 34%, thus resulting in an enhanced profit bearing for the Pharmaceutical Industries.</p><p>Sudden outbreak of Coronavirus in final quarter of FY 20 has caused high panic among people, resulting in enhanced procurement of pharmaceutical supplies for prevention as well as for treatment of various symptoms. It has thus caused an appreciable increase in the demand for Pyridine which is utilized as a starting ingredient in the manufacturing process of a wide variety of drugs. This demand for Pyridine is likely to surge in the coming years over uncertainties regarding the complete abatement of virus till the attainment of a proper vaccine. Moreover, increase in crop rotation practices in the global agriculture industry to provide the economies enough food supply in times of pandemic has further propelled the demand for Pyridine. However, the prices of Pyridine dropped marginally from previous year on low seasonal demand for the product in the first quarter followed by production cut in several end-user industries as several economies imposed lockdown to contain Coronavirus spread. The prices of the product are anticipated to recover by the first quarter of FY 21 at the back of outgrown demand for the product from Pharmaceutical and Agriculture industry after Coronavirus pandemic.</p><p>According to ChemAnalyst report,” <strong>Global Pyridine Market - Plant Capacity, Production, Operating Efficiency, Demand & Supply, Grade, End Use, Type, Sales Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”.</strong> Asia-Pacific region accounts for majority of the global consumption of Pyridine owing to the rapidly expanding Pharmaceutical industry encompassing massive productive capacity. Hence, China followed by India incorporates more than 50% of the worldwide total capacity to produce Pyridine. In the coming years, Europe is likely to witness prominent surge in demand at the back of the rising interest of companies to tap the growing pharmaceuticals and agrochemical market of the region. Major companies operating in the manufacturing of Pyridine in global market include Vertellus Specialties Incorporation, Jubilant Life Sciences, Red Sun Group, Lonza Group Limited, Weifang Sunwin Chemical Company Limited, Shangdong Luba Chemical Corporation Limited, Resonance Specialties Limited, Koei Chemical Company Limited, Hubei Sanonda, Prochem Incorporation, Chang Chun Petrochemicals Corporation Limited, Bayer AG and Mitsubishi Chemicals etc. In past few years there have been no additions in Pyridine capacity in the global market due to stable market dynamics of the product.</p><p>“Coronavirus crises in Q4 of FY 20 has hard hit the chemical and petrochemical industry, taking down the demand for various product to record low. In these tough times, Pharmaceutical and Specialty chemicals have been the only leveraged sectors to uphold the stocks of chemical market. The demand for pharmaceuticals and specialty chemical products have witnessed incredible surge on bulk procurement for drugs and hygiene products to grapple Coronavirus. As Pyridine is widely consumed in Pharmaceutical industry to produce Vitamin B3 for its nutritious value, high inclination of people towards nutritious food to attain sufficient immunity has shown a huge uptrend in the demand for the product in pharmaceutical as well as food and beverage industry. In addition as Pyridine is also synthesized as an active initiator in the production of various pharma drugs, the demand for Pyridine is likely to boost in the coming years as large number of companies are emerging in global Pharmaceutical market to widen their profit margins in times of bulk demand. Moreover, increasing demand for agrochemicals from agricultural sector on account of rising crop rotation practices around the globe will continue to drive the consumption of Pyridine in the forecast period.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.</p><p><strong>Source : ChemAnalyst</strong></p></div>India’s Naphtha Demand to Grow at a CAGR of 6.25% by 2030https://globalriskcommunity.com/profiles/blogs/india-s-naphtha-demand-to-grow-at-a-cagr-of-6-25-by-20302020-06-24T15:00:00.000Z2020-06-24T15:00:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p><a href="{{#staticFileLink}}8028317891,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028317891,original{{/staticFileLink}}" class="align-center" alt="8028317891?profile=original" /></a></p><p>According to ChemAnalyst report, “<strong>India Naphtha Market: Plant Capacity, Production, Operating Efficiency, Technology/Process, Demand & Supply, Type, Application, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”,</strong> India’s Naphtha demand stood at 20 million tonnes in FY19 and is projected to grow at a CAGR of 6.25% in the forecast period. Increasing demand for Naphtha as a feedstock for obtaining several petrochemicals, such as olefins and aromatics which are further processed to serve several downstream sectors such as plastics, textile, rubber etc., backed by increasing demand for motor fuel and Aviation Turbine Fuel (ATF) would drive the Naphtha demand in the forecast period.</p><p><strong>Browse Complete Report</strong> : <strong><a href="https://www.chemanalyst.com/industry-report/india-naphtha-market-88">India Naphtha Pricing, Demand & Supply</a></strong></p><p>Naphtha is a highly flammable, light derivative of crude oil obtained through processes like fractional distillation, coal-tar boiling and others. It is straw colored to colorless liquid having a characteristic odor, like gasoline. Based on type, Naphtha market has been segmented into Light Paraffinic Naphtha and Heavy Naphtha. Light Naphtha is rich in olefins and is the most preferred feed for steam crackers for producing a plethora of olefins/polyolefins such as Ethylene, Propylene, Butadiene etc. However, it faces strong competition from feedstocks like Ethane, Propane and Butane (EPB). Heavy naphtha contains high aromatic and Naphthenic content and is mainly used for gasoline reforming and produce several aromatic products such as Benzene, Toluene, Xylene etc.</p><p>Around 65% of the Naphtha produced in India is being used in gasoline blending followed by the petrochemical industry which seems to grow at the greatest pace in the next decade. India’s Naphtha demand as fuel is set to soar in the years to come with rising transportation sector further supported by increasing jet fuel demand due to continuously expanding middle class population. Moreover, increasing use of aromatics in the production of edible oils, elastomers, and personal care products is expected to fuel the Naphtha market growth during the forecast period. In addition, rising demand for olefins and polyolefins for producing plastics used in construction, electrical and electronics and packaging industry will further propel market growth in the coming years.</p><p>The “Hydrocarbons Vision – 2025” proposed by the Indian government, aimed at increasing indigenous production and expansion of Indian hydrocarbon sector in the country will give a strong boost to the Naphtha market over the coming years. The vision which has been aimed at increasing the domestic availability of petroleum products and create major employment opportunities by 2025 will further propel the Naphtha market growth in the forecast period.</p><p>However, the recent outbreak of novel Coronavirus led to an unprecedented fall in the India Naphtha demand. Hit by supply glut and reduced buying sentiments, Indian refineries remained indefinitely shut or curtailed their operating rates throughout the fourth quarter of FY20, as demand dived to several years low due to halt in industrial operations and transport restrictions amid nationwide lockdown. India’s fuel demand fell by 46 per cent in April 2020 on y-o-y basis. Not only this, halted trade and logistics exacerbated a gradual fall in the Naphtha exports across Mumbai and Kochi ports, contracting the margins of major exporters. Naphtha prices strongly oscillate with the feedstock crude. Hammered by a freefall in crude oil values, Naphtha prices plunged to record breaking lows in Q4 FY20 oscillating between $580-$600 per MT. However, several refiners like RIL which had been running its two refineries in Jamnagar petrochemical complex almost uninterrupted, remained normally operational despite the lockdown. Players are anticipating a substantial rise in fuel demand with ease in lockdown restrictions, as vehicular traffic returned to roads and flights resumed to carry passengers. Moreover, restart of several industrial operations which consume Naphtha as feedstock will support the growth of the market in the coming months.</p><p>According to ChemAnalyst report, <strong>“India Naphtha Market: Plant Capacity, Production, Operating Efficiency, Technology, Process, Demand & Supply, Type, Application, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”</strong>, India’s Naphtha production outpaces the domestic demand, hence India is also among the key Asian Naphtha exporters with annual exports reaching about 7-9 MMTPA. Key players operating in India Naphtha market are Reliance Industries Limited (RIL), Indian oil Corporation Limited (IOCL), Essar Vadinar, Bharat Petroleum Corporation Limited (BPCL), Gail (India) Limited, Oil and Natural Gas Corporation Limited (ONGC), Hindustan Petroleum Corporation Limited (HPCL), Nayara Energy, Mangalore Refinery Petrochemicals Ltd (MRPL). RIL dominates the India Naphtha market with around 40% share. Continuous expansion of India’s chemical and petrochemical sector with several refiners working towards maximizing conversion of oil-to-chemicals using various naphtha cracking technologies is likely to drive the Naphtha market in the forecast period. One such example is the mega expansion project devised by the Assam-based Numaligarh Refinery Limited (NRL) for which the company has awarded an order worth INR 300 Cr to the Thyssenkrupp’s plant engineering business. Thyssenkrupp will provide support in engineering, procurement, and construction management (EPCM) services for several units of its refineries located in the Northeastern India. The project is expected to complete by 2024 and would facilitate NRL to expand its refining capacity from 3 MMTPA to 9 MMTPA respectively.</p><p>“India’s continuously expanding petrochemical sector is likely to open a window of opportunity to all the refiners in the country. Although the country is already dealing with Naphtha supply overhang, greater downstream Ethylene capacities tentative to arrive will ensure greater push to the industry. However, experts believe that although gasoline consumption is expected to wane with time due to increasing focus on electric vehicles and energy efficient economy, crude-to-chemicals complexes could dominate the petrochemical industry in the coming future. Emerging refiners have a keen focus on integrating petrochemical production with more and more hydrocrackers at targeting Naphtha at a large scale. Prices for light and heavy Naphtha, both being crude derivatives are intertwined. However, acute volatility in crude is likely to temper the Naphtha prices going forward. Hence, it is extremely crucial to keep a track on the changes in the industry dynamics both globally and domestically, besides determining what impacts these will have on the country’s petrochemical sector. Naphtha is the most important petrochemical feedstock across the chemicals value chain and is being importantly used for gasoline blending, so its prices are strongly influenced by the supply and demand balance.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.</p><p><strong>Source : ChemAnalyst</strong></p></div>India Wastewater Treatment Chemicals Market to Achieve an Impressive Growth by 2030https://globalriskcommunity.com/profiles/blogs/india-wastewater-treatment-chemicals-market-to-achieve-an2020-06-19T15:30:00.000Z2020-06-19T15:30:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p><a href="{{#staticFileLink}}8028320457,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028320457,original{{/staticFileLink}}" class="align-left" alt="8028320457?profile=original" /></a></p><p>According to ChemAnalyst report, “India Wastewater Treatment Chemicals Market: Plant Capacity, Production, Operating Efficiency, Technology, Process, Demand & Supply, Grade, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, India Wastewater Treatment Chemicals market grew at a CAGR of around 7.21% during 2015-2019 and is anticipated to grow at a healthy CAGR during the forecast period. Decreasing per-capita freshwater availability due to rising water pollution and population levels, as India walks towards rapid industrialization and urbanization will drive the demand for Wastewater Treatment Chemicals in the forecast period. Moreover, stringent government norms regarding the discharge of industrial wastewater before discharging it into the water bodies would promote increased adoption of Wastewater Treatment Chemicals in the forecast period.</p><p><strong>Browse Complete Report : <a href="https://www.chemanalyst.com/industry-report/india-wastewater-treatment-chemicals-market-86">Wastewater Treatment Chemicals Market in India</a></strong></p><p>Water and Wastewater Treatment Chemicals encompass a wide range of chemicals such as corrosion & scale inhibitors, anti-scalants, coagulants & flocculants, biocides, disinfectants, pH adjusters and others. Corrosion & scale inhibitors and anti-scalants dominate the market of Wastewater Treatment Chemicals with almost 50% share in the overall demand. They find usage in several water intensive industries such as sugar, pharma, fertilizer, paper & pulp, and oil & gas industry which generate huge volumes of wastewater. The treated wastewater can be reused for agricultural, industrial, and other non-potable purposes such as irrigation which is by far the largest consumer (about 78 per cent) of India’s water reserve. Union government’s big steps towards reforming India’s water management practices such as establishment of the Jal Shakti ministry backed by tenacious efforts of the state government towards promoting adoption of sustainable water treatment practices, has given a strong boost to Wastewater Treatment Chemicals industry.</p><p>The ‘Zero Liquid Discharge’ Policy proposed by the MoEF and Central Pollution Control Board (CPCB), urging industries to achieve the ZLD status would propel the wastewater treatment market growth prospects in the forecast period. ZLD is a concept where the entire industrial and municipal wastewater can be reused after recycling without discharging it into any river.</p><p>Municipal sector holds about 30% share in Wastewater Treatment Chemicals market followed by power plants which are the second biggest consumers of Wastewater Treatment Chemicals. India’s thermal power sector consumes almost double the water than what is consumed by China for the same unit of power generation. Regionally, western region holds the largest market share in the India Wastewater Treatment Chemicals market, owing to huge industrial expansion and scheduled developments in the next five years.</p><p>Outbreak of novel coronavirus has clearly highlighted the dire need for sustainable water and wastewater management practices in a country like India where out of 18.6 per cent of total treatment capacity, only 13.5 per cent of sewage is being effectively treated as of 2017, depriving over 163 million people of regular safe drinking water. Indian government’s Swachh Bharat Mission (SBM) backed by people’s strong drift towards better hygiene practices to control the spread of contagious virus, the Wastewater Treatment Chemicals demand is expected to grow tremendously in the current fiscal and record double-digit growth by 2030. The World Health Organization (WHO) has stressed upon maintaining hand hygiene by washing hands with soap and water or using alcohol-based hand sanitizers multiple times to prevent the transmission of the virus. Increased consciousness among people for maintaining hygiene has further heightened India’s water consumption by 1.5 times. These factors have further augmented the remarkable growth in demand of Wastewater Treatment Chemicals in the long run.</p><p>According to ChemAnalyst report, “India Wastewater Treatment Chemicals Market: Plant Capacity, Production, Operating Efficiency, Technology, Process, Demand & Supply, Grade, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, some of the major players operating in the Indian Wastewater Treatment Chemicals market are NALCO Water India Limited, SUEZ India Private Limited, Ion Exchange India Limited, Thermax India Limited, Chembond Chemicals Limited , Vasu Chemicals, Solenis India Ltd., BASF India Ltd., Dew Speciality Chemicals Pvt Ltd, Vishnu chemicals limited Strategic Analysis India Pvt. Ltd. etc. There has been increasing government investments for treating industrial wastewater. The union environment ministry has recently granted environmental clearance for setting up of 20 MLD Common Effluent Treatment Plant (CETP) that would treat lakhs of litres of tannery effluents discharged from 380 individual tannery units in a river in Kanpur. The estimated cost of the three-phased project would be INR 629 crore and the project would include pre-treatment unit in tanneries, a 20 CETP with physical, biological and tertiary treatment and installation of Zero Liquid Discharge (ZLD)- based pilot plant of 200 KLD capacity.</p><p>“Public health protection has become an issue of serious concern these days. There has been a global shift from a linear to a more circular economy. The current “take-make/use-dispose” economic model is transforming towards a more circular one to relieve undue pressure on our resources—water, energy, materials, and food. With government’s keen focus on Zero Liquid Discharge (ZLD) policy and stricter Central Pollution Control Board (CPCB) norms, the Wastewater Treatment Chemicals market would register record-breaking growth rate over the coming years. The Jal Shakti ministry has set a target of providing 55 litres per person per day piped water to every home at the rate of by 2024, this further heightens the need to adopt sustainable wastewater treatment practices. Moreover, various river cleaning programmes by the Indian government such as Namami Ganga Projects support the market growth. COVID-19 has reinstated the nation’s urge to access safe water and sanitation facilities for all, hence advanced formulations in present-day wastewater treatment technologies have become the need of the hour. These factors not only highlight the factors catalyzing the Wastewater Treatment Chemicals market growth but also the upcoming market potential, as efficient waste management appears to be a mandate in the near future.“, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.</p><p><strong>Source : ChemAnalyst</strong></p></div>India Methanol Demand to surpass 20 Million Tonnes by 2021https://globalriskcommunity.com/profiles/blogs/india-methanol-demand-to-surpass-20-million-tonnes-by-20212020-06-16T16:00:00.000Z2020-06-16T16:00:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p>According to ChemAnalyst report, “<strong>India Methanol 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”,</strong> India Methanol market grew at a CAGR of around 7.15% during 2015-2019 and is projected to grow at a healthy CAGR during the forecast period. Increased Methanol demand as a fuel additive strengthened by India’s vision to create a Methanol Economy will drive the Methanol demand in the forecast period. Moreover, increasing usage of Formaldehyde resins increasingly consumed by downstream packaging sector and rising demand for derivatives such as MTBE, DME, DMT etc. will further propel the Methanol market growth over the coming years.</p><p><strong>Browse Complete Report</strong> : <strong><a href="https://www.chemanalyst.com/industry-report/india-methanol-market-83">India Methanol Price, Demand and Supply</a></strong></p><p>Methanol (also known as Methyl Alcohol) is an important feedstock for the production of Acetic Acid and Formaldehyde, which are further used in products like adhesives, foams, plywood subfloors, solvents etc. In addition, Methanol is used to produce methyl tertiary butyl ether (MTBE) and Dimethyl Ether (DME), components used in gasoline blending to impart cleaner fuel properties to the parent fuel. Methanol blends possess the potential to improve the vehicle efficiency by about 25%. In addition, due to its potential to reduce greenhouse gas (GHG) emissions, Methanol is believed to bring India closer to fulfilling COP-21 UN Climate Conference commitments towards cutting the overall GHG emissions across the globe. In addition, Methanol is also a key component in biodiesel, a renewable fuel that can be used in place of, or blended with, conventional diesel fuel. India’s vision towards switching to cleaner fuels and reducing its import bill by 15% would drive the Methanol market in the forecast period.</p><p>Around 45% of the world’s Methanol produced goes for energy-related applications, however, Methanol consumption trends in India slightly vary as compared to the rest of the world. Of all the end-users, Formaldehyde sector holds the largest market share dominated by increasing consumption of Formaldehyde resins which are extensively used in the packaging sector. The share of formaldehyde in the sectoral usage of Methanol has improved significantly to 45% in FY20. This has been strongly supported by the rapid expansion of the country’s packaging and paints and coatings sector with rising middle-class population over the last few decades.</p><p>Coal to Methanol technology is the most preferred technology for producing Methanol worldwide. Apart from that biomass or municipal solid waste and flared natural gas can also be used for Methanol production, but the continuous availability of latter poses a major challenge. Since India currently has no commercial coal to Methanol plant, it is anticipated that it would be economically viable if India utilizes its coal reserves for Methanol production to reduce its import dependency. In attenuation to the government’s initiatives towards promoting Methanol blending in petrol and adoption of cleaner fuels, the world's largest coal miner Coal India Ltd. (CIL) is aiming to produce 6.76 lakh tonnes of methanol per annum to boost clean energy initiatives by setting up a Coal -based Methanol plant at Dankuni Coal Complex (DCC) of South Eastern Coalfields Ltd (SECL), a subsidiary of the company. India’s favorable policies and government’s strenuous efforts towards promoting “Make in India” scheme are indicative of the robust growth of the Methanol industry in India.</p><p>However, outbreak of COVID-19 triggered a sudden downfall in the global fuel consumption as the operations remained stalled for most of the fourth quarter of 2020 due strict lockdown measures taken to contain the virus spread. Hammered by the pandemic stress, Methanol prices plunged to 11-year lows to about $156 per MT CFR India. Operations at the downstream plywood and Formaldehyde sectors also remained halted for several weeks, due to lack of working laborers. In additions, Methanol inventories at Kandla and Mumbai ports swelled due to reduced offtake because of logistic issues. However, with ease in lockdown restrictions, Methanol players are optimistic as they sense a speedy recovery in the price levels and increase in downstream demand.</p><p>Majority (about 90%) of India’s Methanol requirement is met through imports with more than 90% imports from Iran and Saudi Arabia where it is produced abundantly from Natural Gas. This is primarily because, it is cheaper for India to import methanol than to locally produce it from Natural Gas which is again imported as the country does not house any Coal to Methanol plant despite its huge coal reserves. India also exports small volumes of Methanol, but the amount has been almost negligible as compared to the imported volumes. According to ChemAnalyst report, “<strong>India Methanol 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”,</strong> the key Indian players operating in the India Methanol market are– Gujarat Narmada Valley Fertilizer & Chemicals limited, Deepak Fertilizers, Rashtriya Chemicals and Fertilizers, Assam Petrochemicals and National Fertilizers Limited. Saudi Arabia Basic Industries Corporation (SABIC), Zagros Petrohemical Co., Kharg Petrochemical, Marjan Petrochemical, Fanavaran Petrochemical etc. are some of Middle Eastern players operating in the India Methanol market.</p><p>“India stands third in the list of major energy related carbon dioxide emitter in the world. If the country adopts the idea of Methanol Economy, it can easily mitigate the environmental challenges it is facing since decades. The Indian Government body NITI Aayog is actively preparing a road map for full-scale implementation of Methanol Economy in the coming years. The time has come when the government is betting big on cleaner fuels for transport and household cooking. Due to its emission benefits, the government is also planning to adopt Methanol as a fuel in the marine sector. These factors clearly portray that the growth of the India Methanol industry is likely to surpass its expected levels in the coming few years, with fuel additives sector leading the industrial growth. Currently, India is finding out ways to curtail its import dependence to reduce its import bill by channelizing its coal reserves to produce Methanol. India’s expanding packaging and adhesives market also offers a vast potential to the country’s Methanol market growth. In addition, demand for Acetic Acid and other derivatives such as MTBE and Dimethyl Ether (DME) which when blended with conventional fuels are known to impart high-octane and environment friendly properties with lower emissions, will further give a strong boost to the India Methanol industry in the forecast period. Since India heavily relies on cheaper imported Methanol, it is extremely crucial for the local players to evaluate the influence of COVID-19 outbreak on the Methanol supply chains across the globe and study its potential impact on the India’s Methanol Industry for long term gains.“, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.</p><p><strong>Source : ChemAnalyst</strong></p></div>India’s Styrene Acrylonitrile (SAN) Demand to Record Impressive Growth with a CAGR of 6.85 % by 2030https://globalriskcommunity.com/profiles/blogs/india-s-styrene-acrylonitrile-san-demand-to-record-impressive2020-06-09T15:00:00.000Z2020-06-09T15:00:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p><a href="{{#staticFileLink}}8028326652,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028326652,original{{/staticFileLink}}" class="align-center" alt="8028326652?profile=original" /></a></p><p>According to ChemAnalyst report,” <strong>India Styrene Acrylonitrile (SAN) Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Type, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030</strong><strong>”.</strong> The demand for SAN is expected to achieve a healthy CAGR of around 6.85 in the forecast period owing to the persistent hike in demand for SAN in manufacturing of electrical and electronic devices in the rapidly expanding Asian electronic sector. SAN is a copolymer produced by mass polymerization, emulsion, or suspension by utilizing 20-30% of Acrylonitrile resin and rest of Styrene. Impressive properties of SAN like tremendous heat and chemical resistance along with high rigidity makes it a highly profound material in several industries. Hence, increasing demand for SAN in the manufacturing of medical devices on potential advances being made in healthcare sector after the outbreak of Pandemic is likely to propel the demand for SAN in the coming years. The product also offers superior hygiene properties along with safety benefits. Moreover, SAN is also highly demanded for packaging applications in food and beverage industry. This demand is anticipated to propel at a prominent rate owing to the increasing stress over single-use packaging to restrain any chances for Covid-19 infection by contagion.</p><p><strong>Browse Complete Report</strong> : <strong><a href="https://www.chemanalyst.com/industry-report/india-styrene-acrylonitrile-san-market-75">India Styrene Acrylonitrile (SAN) Pricing</a></strong></p><p>As India accounts for limited production of SAN in contrast to its massive demand. In Dec 2019, All India Plastics Manufacturers Associations urged the government to restructure anti-dumping duty of major imported polymers and bring down anti-dumping duty on SAN by 5 per cent to efficiently nurture the upliftment of associated industries.</p><p><strong>Chemical-Pricing: <a href="https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False">https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False</a></strong></p><p>Onset of Coronavirus in final quarter of FY 20 has led to a sudden drift in demand for SAN from major-end user industries as they were compelled to suspend the production of the products on plunging demand for products as an outcome of the nationwide lockdown imposed by the government to constrain the Coronavirus spread. The demand for SAN has been negatively affected by the persistent slowdown in automotive sector initially due to the economic downturn, that was further exacerbated by outbreak of the global pandemic .The downturn in demand in automotive industry has substantially reduced the consumption of SAN, which is utilized in the molding and manufacturing of various automotive parts. However, this significant slump in demand for SAN from automotive industry has been prominently stabilized by the astonishing increment in demand for plastic packaging in food and beverages industry, making use of SAN to produce hygienic and safe plastics. This sudden shift towards single-use plastic packaging is expected to appreciably drive the demand for SAN and other polymer materials in the coming years on dilemma over the complete abatement of very till a proper vaccine in attained. The enhanced requirement for medical devices on continuous advances being done in the healthcare sector after Covid-19, has further pushed up the demand for SAN which is required for producing medical light diffusers, autoclavable devices and various other devices. Moreover, government initiative of self-reliant India with an aim of making India the manufacturing hub is anticipated to propel the demand for SAN in electrical and electronics industry as the country is keen to reduce the imports of finished goods from major importer China, thus giving domestic manufacturers a chance to fully cater to the domestic demand and consolidate heavy revenues.</p><p>According to ChemAnalyst report,” India Styrene Acrylonitrile (SAN) Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Type, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”. Major manufacturers engaged in the production of SAN in India are Bhansali Engineering Polymers and INEOS Styrolution Limited. As limited production capacity is unable to completely cater to the domestic demand, imports also play a significant role to fulfill the requirement of the India SAN Market. Other players of SAN operating in India include LG Chem, Lotte Chemical Corporation, China National Petroleum, Sabic Innovative Plastics, Toray Industries, Daicel Polymer Limited, Ningbo LG Yongxing Chemical, Formosa Plastic Group, etc. The market portrays massive opportunity for new players to emerge owing to the continuous increase in demand for SAN in comparison to its installed capacity in the country.</p><p>“ The chemical and petrochemical industry in India has faced tremendous downfall in the fourth quarter of FY 20 on sudden decline in demand for various products due to halt in production in several industries along with suspension of trade activities from international market as a ripple effect of Coronavirus outbreak. Amidst devastating fears of global recession on declining revenues from majority of industries, Polymer and Resin, Pharmaceuticals and Specialty Chemicals are among the few industries that witnessed an uptrend in their stock value as an effect on shift in demand towards hygiene and cleanliness friendly products due to lifestyle changes of people. The growing awareness over cleanliness and hygiene among people has escalated the demand for plastic packaging, thus pushing up the consumption of products like SAN, ABS, Polystyrene, and various other polymers. Similarly, the demand for SAN has also been positively influenced by the spur in demand for medical devices at the back of continuous advances being done in the healthcare industry to combat to the virus. This demand for SAN from healthcare sector is likely to grow at an incredible rate in the coming years owing to the concern over improvisation of domestic healthcare facilities to grapple present and post virus challenges in the country. Moreover, the recent government initiative of making India a manufacturing hub is anticipated to bolster the demand for SAN in its major segment electrical and electronics ,as the Indian market will enhance its manufacturing, thus cutting imports from its biggest importing country, China” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.</p><p><strong>Source : ChemAnalyst</strong></p></div>India’s Polycarbonate Demand to Uptrend and Register a CAGR of 6.85% by 2030https://globalriskcommunity.com/profiles/blogs/india-s-polycarbonate-demand-to-uptrend-and-register-a-cagr-of-62020-06-03T16:30:00.000Z2020-06-03T16:30:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p><span><a href="{{#staticFileLink}}8028323898,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028323898,original{{/staticFileLink}}" class="align-center" alt="8028323898?profile=original" /></a></span></p><p><span>According to ChemAnalyst report, “</span><strong>India Polycarbonate Market: Demand & Supply, End Use, Type, Grade, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030</strong>”. India Polycarbonate market is anticipated to project a healthy CAGR of 6.85% in the forecast period, highly influenced by the demand for the product for manufacturing of various devices such as LED system and optical storage in rapidly expanding Asian electronic sector. Polycarbonate is a transparent thermoplastic synthesizing Bisphenol A and Phosgene as feedstock. Properties such as high ductility, high impact resistance and light weight gives Polycarbonate a competitive edge over other plastics. Furthermore, high requirement for Polycarbonate medical syringes and single-use medical packaging in the medical industry in wake of Coronavirus to drive the growth of India Polycarbonate market in the forecast period.</p><p><strong>Browse Complete Report : <a href="https://www.chemanalyst.com/industry-report/india-polycarbonate-market-76">India Polycarbonate (PC) Prices</a></strong></p><p>As automotive industry constitutes a high percentage share in the consumption of Polycarbonates in India. Government initiatives such as the new vehicle safety legislation act in 2019 followed by shift to BS VI emission scheme , requiring the production of BS VI fuel compatible vehicles , led to an incredible rise in the demand for Polycarbonate in the past few years.</p><p><strong>Chemical-Pricing: <span><a href="https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False">https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False</a></span></strong></p><p>The global pandemic has given rise to a remarkable shift in the consumption pattern of Polycarbonate in various end-use industries. Outbreak of Coronavirus in Q4 of FY 20 has negatively impacted the demand for Polycarbonates in automotive and construction industry as several companies were compelled to halt production in compliance to the lockdown put up by the government to contain Coronavirus spread. Even after the ease in restrictions of lockdown, certain automotive companies did not resume the production due to high inventory build up and the ones that resumed the production operated their plants at less than 20% operating rates to restrain the loss in revenue due to subdued demand. Similarly, the reduction in funding’s for construction projects due to slowdown in Indian economy has led to a prolong halt in activities in construction line, thereby, reducing the demand for polymers like Polycarbonate and ABS utilized in the manufacturing of interior and exterior elements of a building. In contrast, sudden upsurge in demand for polycarbonate medical syringes and face masks from medical industry on high requirement for medical facilities to grapple Coronavirus has bolstered the demand for the product. This demand from medical industry is perceived to accelerate in the next five years on high stress in expansion of Medical and healthcare sector after Coronavirus outbreak. Moreover, the demand in major end-use segments of Polycarbonate, electric and electronics and consumer goods remained considerate at the back of rapidly expanding Asian electronic sector and consistent demand for consumer goods. Government initiative of self-reliant India which is emphasized on making India a manufacturing hub is anticipated to further propel the demand for Polycarbonates in electronic industry as manufacturers will enhance their production to cater the overall domestic demand as a result of cut in electronic imports from its major manufacturing country, China. In addition, rise in demand for single-use Polycarbonate packaging in food and beverage industry on panic over reducing the risk of virus contagion is likely to emerge as a potential segment to push the growth of India Polycarbonate market in the forecast period.</p><p>According to ChemAnalyst report, “<strong>India Polycarbonate Market: Demand & Supply, End Use, Type, Grade, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030</strong>”. Till date, India accounts for no domestic production of Polycarbonates, hence primarily all the demand in the market is fulfilled by imports. As the market embarks huge potential for new players, GAIL India Limited, has proposed to set up a Polycarbonate plant with an installed capacity between 1.6-2.0 million metric tons in the coming years. As of now, the major players operating in the India Polycarbonate market include Thai Polyacetal Company Limited and Thai Polycarbonate Company Limited, Saudi Basic Industries Corporation, Formosa Idemitsu Petrochemical Corporation, LG Chem Ltd, Chi Mei Corporation, etc. Due to massive demand for Polycarbonate in the Indian market, the proposed plant of GAIL is anticipated to be a boon for the India Polycarbonate market and is expected to consolidate huge revenue after completion.</p><p>“Chemical industry is witnessing a huge shift in the market sentiments owing to the change in lifestyle of people in wake of Coronavirus outbreak. Earlier petrochemical sector upheld the profit in chemical industry but due to unprecedented dive in the value of crude oil at the back of high inventories and reduced consumption after Coronavirus outbreak, the demand for petrochemicals apart from the ones utilized in hygiene products has dived proportionally. In contrast, Polymer and Resin sector has witnessed huge gains influenced by the increasing requirement for plastic in packaging, healthcare, and pharmaceuticals. As Polycarbonate is utilized in appreciable quantity in the manufacturing of medical syringes and face masks, the demand for the product is expected to grow at an incredible pace under high requirements from Medical Industry till the complete abatement of virus. Moreover, packaging industry is likely to further push up the demand for Polycarbonates as it is considerably being utilized in manufacturing of single-use plastics for food and pharmaceuticals. However, the demand for Polycarbonates from automotive and construction industry will take time to regain momentum after prolonged slowdown due decline in Indian economy. Government initiatives such as self-reliant India, stressed on making India a manufacturing hub, prompts large gain in electric and electronic sector as the domestic manufacturers can cater to majority of domestic demand, after the reduction in imports from China. The enhanced manufacturing in the electrical and electronic industry, the prime end-use industry for Polycarbonates will largely drive the demand for Polycarbonate in the coming years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.</p><p><strong>Source: ChemAnalyst</strong></p></div>India Low-Density Polyethylene (LDPE) Demand to Cross 900 KTPA Mark by 2030https://globalriskcommunity.com/profiles/blogs/india-low-density-polyethylene-ldpe-demand-to-cross-900-ktpa-mark2020-06-02T16:30:00.000Z2020-06-02T16:30:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p>According to ChemAnalyst report, “<strong>India Low-Density Polyethylene (LDPE) Market: Plant Capacity, Production, Operating Efficiency, Process, Demand & Supply, Application, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”,</strong> India Low-Density Polyethylene (LDPE) market is projected to grow at a CAGR of 5.52% during the forecast period due to Increasing consumer preference for innovative, lightweight, and convenient packaging in the FMCG industry backed by increasing demand for LDPE shrink films for bundle-packaging of beverages and eatables during the forecast period.</p><p><strong>Browse Complete Report :</strong> <strong><a href="https://www.chemanalyst.com/industry-report/india-low-density-polyethylene-ldpe-market-71">India Low-Density Polyethylene (LDPE) Market Prices</a></strong></p><p>LDPE is the most ubiquitous of all polyethylene because it is cheap to make, light in weight and is strong enough to withstand environmental stresses and rough handling. LDPE finds extensive applications in heavy-duty films, lamination films, extrusion coating and moulding applications. Lamination films hold a significant market share in the India LDPE demand (about 40 per cent) backed by a boost in the country’s packaging sector. There has been a consistent rise in demand for LDPE films for wrapping poultry, dairy products, snacks and sweets, frozen food and bakery products with heightened hygiene standards. LDPE shrink films are globally preferred over other polyethylene films for packing heavy bundles of large items like beverage cans and packs of edible oils. Moreover, demand for intact LDPE pouches and carry bags has been increasingly growing for storing pharma drugs for longer durations. These factors are likely to support the growth of LDPE market in the forecast period.</p><p><strong>Chemical-Pricing: <a href="https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False">https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False</a></strong></p><p>Outbreak of novel coronavirus had a significant impact on the country’s LDPE sector as several Indian ports declared force majeure to contain the spread of coronavirus pandemic. In Q4FY20, LDPE supplies remained tightened as key southeast Asian players such as Lotte Chemical Titan temporarily shut their manufacturing units further hit by undue delays in scheduled capacity expansions. LDPE film CFR India prices dived by 2 per cent in the fourth quarter oscillating between $900-920/ tonne, due to overall industrial slowdown. However, manufacturers are sensing speedy recovery in the industry as India experiences strong wave of self-dependency amid COVID-19 related uncertainties and a strong boost in its FMCG and pharmaceutical sector. Moreover, government’s initiatives towards making India a global manufacturing hub such as “Make in India” Scheme and rising investments towards promoting advanced packaging technologies in MSMEs will support the growth of India LDPE market despite all odds.</p><p>According to ChemAnalyst report, “<strong>India Low-Density Polyethylene (LDPE) Market: Plant Capacity, Production, Operating Efficiency, Process, Demand & Supply, Application, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”,</strong> Currently, Reliance Industries Limited is the only manufacturer of LDPE in India and holds around 60% share in the domestic LDPE market. The company is continuously ramping up its capacity at Jamnagar petrochemical complex to cater to country’s growing domestic LDPE demand. RIL uses LyondellBasell’s Lupotech technology for LDPE production which is the most popularly used technology across the globe. Some of the other players operating in the LDPE market are Rakha Al-Khaleej International (RAI) FZCO, Abu Dhabi Polymers Company (Borouge), Saudi Kayan Petrochemical Co., Sinopec Corp., Beijing Yanshan Petrochemical Co., Ltd., ExxonMobil Chemical Co, Qatar Petrochemical Company, Borealis AB, The Dow Chemical Company, LyondellBasell, Saudi Basic Industries Corporation (SABIC) etc.</p><p>“Polymer demand suffered a major blow after the onset of coronavirus. Domestic LDPE prices remained relatively stable in the fourth quarter as players recorded drop in inventory levels amid restricted imports in the country due to lockdown measures. Polymers are processed from crude oil in refineries and hence their prices vary proportionately to crude oil except when their demand-supply factors become deciding factors in short term. Manufacturers are anticipating better profit margins in the forthcoming quarters in tandem with the collapse in upstream crude oil prices which would further suppress their input cost. With local players striving to establish a strong customer base across the globe backed by hefty industrial investments in accord with the government’s “Make in India” scheme, country’s LDPE market is expected to get a strong boost in the coming years. Moreover, with the expansion of the domestic packaging sector which is likely to register Y-O-Y growth of about 20 per cent, the demand for LDPE shrink films will surpass its already existing levels. As India focusses on becoming self-reliant, there is a strong likelihood that LDPE imports will substantially fall in the coming years. Looking at the volatility in the market dynamics, it is important for domestic players to plan efficient utilization of their assets and strategize their expenditures to maintain their position in the India LDPE market.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.</p><p><strong>Source : ChemAnalyst</strong></p></div>India’s Poly Vinyl Chloride (PVC) Demand to Register Robust Growth with CAGR of 6.81% by 2030https://globalriskcommunity.com/profiles/blogs/india-s-poly-vinyl-chloride-pvc-demand-to-register-robust-growth2020-06-01T14:30:00.000Z2020-06-01T14:30:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p><span><a href="{{#staticFileLink}}8028322074,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028322074,original{{/staticFileLink}}" class="align-center" alt="8028322074?profile=original" /></a></span></p><p><span>According to ChemAnalyst report, “</span><strong>India Poly Vinyl Chloride (PVC) Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Type, Grade, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030</strong><strong>”. </strong>The demand for Poly Vinyl Chloride is anticipated to outshine at an impressive CAGR of around 6.81% in the forecast period on increasing government schemes for the betterment of facilities for pipe water supply in rural as well as agriculture areas. Furthermore, the sudden surge in demand for PVC in flexible packaging over hygiene awareness in wake of Coronavirus spread in the country is further anticipated to contribute towards considerable growth of PVC market during the forecast period. Polyvinyl Chloride is a part of vinyl chain group and comes under the category of synthetic polymer. The demand for PVC varies with its different grades and types. Among the different grades of PVC, pipe grade PVC is the majorly demanded due to its high requirement in agricultural and construction industries for production of underground irrigation and water distribution system.</p><p><strong>Browse Complete Report</strong> : <strong><a href="https://www.chemanalyst.com/industry-report/india-poly-vinyl-chloride-pvc-market-74">India Poly Vinyl Chloride (PVC) Pricing</a></strong></p><p>Pipe grade PVC constitutes over 40% share of the total demand for PVC in the country. The budget of FY 20 containing initiatives to produce efficient piped water facilities for rural and agricultural areas by 2024 has given the much-needed push in accelerating the demand for PVC in the country.</p><p><strong>Chemical-Pricing: <span><a href="https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False">https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False</a></span></strong></p><p>Outbreak of Coronavirus in the final quarter of FY 20 has led to a devastating economic slowdown followed by the fallout in business of various industries. This economic downturn is incurred under the domino effect of lockdown imposed in the country to contain the spread of virus. However, rising awareness over cleanliness and hygiene and increasing requirement for drugs and medical equipment have kept the stocks of Packaging, Healthcare and Pharmaceutical industry high in hard times of economic crises. As PVC is utilized in an appreciable amount in the production of flexible packaging plastic, majorly for food and pharma industry, the demand for PVC in packaging industry has increased over panic procurement of packaged goods to avoid chances of contagion by any means. This spike in demand for flexible packaging is likely to grow at the consistent pace in the coming years as the complete abatement of the virus is uncertain till a proper vaccine in attained. In contract, the demand for PVC from automotive and construction sector has declined considerably, affected by the crash in finances of industries and reduced public spending. Moreover, many of the construction projects where PVC is utilized in manufacturing of films, molding and profiles has been sidelined due to low cash flow. Similarly, the demand for automotive utilizing PVC plastics in various parts have been reduced as an outcome of low offtakes from consumer primarily due to reduction in their gross annual income after Coronavirus. To grapple this hard time for industries, Government of India has proposed a scheme of self-reliant India stressing on the increase in Indian manufacturing activities in order to cut the reliance on imports from other countries. This initiative if implied properly is anticipated to bolster the growth of various industries as it will help the manufacturers to consolidate to complete domestic demand .Moreover, a number of initiatives for improvisation of facilities for pipe water supply to rural and agricultural areas under the scheme of ‘ Make in India’ has surged the demand for pipe grade PVC . This demand is anticipated to further propel in the coming years on increasing stress on better infrastructure and lifestyle of the country.</p><p><span>According to ChemAnalyst report, “</span><strong>India Poly Vinyl Chloride (PVC) Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Type, Grade, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”. Major players operating in India PVC market include</strong> reliance Industries, Finolex Industries Limited, Chemplast Sanmar Limited, DCW Limited, DCM Shriram Limited. Other international companies catering the demand for PVC in India are Occidental Petroleum Corporation, Formosa Plastics Group, Mitsui Chemicals, Hanwa Chemical Corporation, LG Chem, Xinjiang Zhongtai Chemical Co. Ltd etc. Among the domestic manufacturers, Reliance industry is largest player with an installed capacity of around 850 KTPA of PVC. As Indian production is unable to satisfy the complete demand for PVC in the country, over 40 per cent of the domestic demand is catered through imports. Thus, there is an excellent potential for new players eyeing to enter the India PVC Market.</p><p> “India PVC market has witnessed tremendous growth in the last few years influenced by sudden surge in demand for pipe grade PVC in agricultural and construction industries. The release of Budget for financial year of FY 20 has increased the number of initiatives for development of efficient facilities for piped water supply and has thus propelled the demand for pipe grade PVC in the domestic market. However, the recent government scheme of self-reliant India which is focused on making India the worldwide manufacturing hub is anticipated to hinder the production of PVC in the initial phase, as the country is largely dependent on imports for the availability of its raw material Vinyl Acetate . At the same time, if executed properly, this reform will highly contribute towards the growth of the chemical industry as it will reduce its dependence on imports, thereby widening the profit margins of the domestic manufacturers. An incredible increase in the demand for PVC to produce flexible packaging for Food and Pharmaceutical has turned out to be a boon for India PVC market in times of plunging demand from several sectors after Coronavirus outbreak. Moreover, manufacturers are optimistic to recover demand from automotive and construction sector on the awaited retrieval of the Indian economy.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.</p><p><strong>Source: ChemAnalyst</strong></p></div>India’s Polystyrene Demand is Projected to Achieve a CAGR 5.5% by 2030https://globalriskcommunity.com/profiles/blogs/india-s-polystyrene-demand-is-projected-to-achieve-a-cagr-5-5-by2020-05-26T15:00:00.000Z2020-05-26T15:00:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p>According to ChemAnalyst report, “<strong>India Polystyrene Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Type, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”,</strong> India’s Polystyrene market is expected to grow at a healthy CAGR of 5.5% during the forecast period due to increasing Polystyrene utilization in food packaging applications and take-away containers backed by country’s strongly growing restaurant food chains and expansion of FMCG sector. Moreover, increasing Indian government initiatives like Make in India scheme and continuous investments in expanding the country’s ACE (Appliances and Consumer Electronics) industry are likely to propel the Polystyrene demand during the forecast period.</p><p><strong>Browse the Complete Report :</strong> <a href="https://www.chemanalyst.com/industry-report/india-polystyrene-market-68"><strong>India Polystyrene (PS) Price</strong></a></p><p>Polystyrene (PS) is a thermoplastic known to possess excellent electrical and mechanical properties. Because of its easy processability, Polystyrene finds varied applications from thin-film packaging to electronic goods. Packaging is one of the key uses of polystyrene which holds a significant share (about 25%) in the country’s overall Polystyrene demand. The report has segmented the India’s Polystyrene market into two types-General-Purpose Polystyrene (GPPS) and High-Impact Polystyrene (HIPS). Both being FDA complaint, are widely used in the food packaging sector. General purpose PS is a low-cost, completely transparent, and rigid Polystyrene, commonly used for manufacturing disposable utensils, cutleries and various other consumer durables. In addition, GPPS which had been traditionally used in CD cases is now being popularly used in manufacturing ubiquitous jewelry boxes and food storage containers. HIPS is more expensive than GPPS and on the other hand, highly impact resistant and not naturally clear or transparent. Due to its easy processability, FDA compliance and matte finish, HIPS is a preferred material for thermoforming and is commonly used in food processing applications such as yogurt cups. Moreover, increasing demand from the refrigerator liner sheets which are commonly formed from HIPS core layer is likely to drive the Polystyrene market during the forecast period.</p><p><strong>Chemical-Pricing: </strong> <a href="https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False"><strong>https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False</strong></a></p><p>According to ChemAnalyst report, <strong>“India Polystyrene Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Type, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”,</strong> India’s domestic capacity is sufficient to cater to its Polystyrene demand. However, India imports huge volumes of the feedstock Styrene Monomer from Singapore, U.S., Korea and Taiwan. Domestic players operating in India Polystyrene market are Supreme Petrochem Limited, LG Polymers India Private Limited and INEOS Styrolution India Limited with Supreme Petrochem dominating the market with more than 50 per cent share. BASF, SABIC, Dow Inc., NOVA Chemicals Corporation, Styrochem, Formosa Chemical & Fibre Corp and Kumho Petrochemical are some of the leading international players operating in the India Polystyrene market. With key players planning to expand their installed PS capacities and huge investments in the country’s strongly growing FMCG sector, the demand for Polystyrene is likely to spur in the forecast period.</p><p>However, sudden outbreak of COVID-19 has rendered a significant disruption in the India Polystyrene demand supply patterns, triggered by indefinite halt in manufacturing activities in the several downstream factories. Although Polystyrene demand in Q4 FY20, has witnessed an overall decline, some sectors like food and medical packaging supported in keeping afloat the overall industrial performance to some extent. Moreover, lack of transportation and trade disruptions not only affected the exported cargoes but also pressurized the volumes of Styrene monomer which is majorly imported from Singapore, U.S., Korea and Taiwan. Already threatened by the demand downturn, the domestic PS industry also suffered a major setback after a massive styrene gas leak incident from the Vizag plant of the country’s second largest Polystyrene manufacturer, LG Polymers India. The incident which took place in the month of May in Q1FY21, has left the 118 KTPA PS plant non-operational for indefinite period till further approval by the Indian government, thereby impacting the country’s overall PS production. However, with ease in lockdown restrictions, players are anticipating that massive restaurants would prefer utilizing high quality disposable cutlery and crockery in the wake of maintain social distancing. This is likely to accelerate the demand for Polystyrene in the next three quarters. Moreover, with massive expansion of the food packaging sector on the cards, the PS demand is likely to spur in the forecast period.</p><p>“Indefinite plant turnarounds have rendered a significant fall in the domestic Polystyrene market in Q4 FY20 with significant implications being felt even in the Q1 FY21. Although the PS industry faced demand downturn from other major end users, the packaging sector emerged as a major savior projecting its huge growth potential in the next five years. As India is totally dependent on imports for feedstock Styrene Monomer, weak Styrene due to sudden crash in upstream crude and Benzene values is likely to bring good days to the domestic manufacturers who are constantly finding ways to combat the injury caused to the industry since the onset of the pandemic. Styrene imports had risen by 25% to 852 KT last year, from 679 KT due to growing demand for PS for light packaging applications in sectors like food delivery, e-commerce, and several consumer products. However, the Indian government is planning to impose a 15% “COVID-19” tax on some imported petrochemicals, which if implemented on the Styrene monomer imports, might cause a huge damage to the PS industry. Amid these uncertainties in the global and India Polystyrene market, it has become extremely crucial for the domestic players to efficiently direct their inventories and ensure protection from undue dumping of goods from the international players after trade disruptions ease as economies head towards recovery. It is also crucial for market leaders to trace the movements of their competitors and estimate what impact these changes will have on the country’s domestic business. With downstream FMCG players planning for huge investments in the Indian subcontinent, the demand for Polystyrene will accelerate with a greater pace in the next 2-3 years. ” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.</p><p><strong>Source: ChemAnalyst</strong></p></div>India’s PET Demand to Outshine and Register a CAGR of 6.75% by 2030https://globalriskcommunity.com/profiles/blogs/india-s-pet-demand-to-outshine-and-register-a-cagr-of-6-75-by2020-05-21T12:30:00.000Z2020-05-21T12:30:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p><span>According to ChemAnalyst report, “</span><strong>India Polyethylene Terephthalate (PET) Resin Market: Plant Capacity, Production, Technology, Operating Efficiency, Demand & Supply, End Use, Type, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030</strong><strong>”.</strong> India PET demand is anticipated to grow at a healthy CAGR of over 6.75% in the forecast period highly influenced by the enormous demand for PET packaging bottles in medical and healthcare industry. PET is a thermoplastic resin, belonging to the polyester family, utilizing Mono Ethylene Glycol (MEG) and Purified Terephthalic Acid (PTA) as feedstocks. In India, PET has turned out to be the profound preference in the packaging industry owing to its eco-friendly and recyclable along with the strength it offers. In addition, increasing preference for PET in pharmaceutical industry over aluminum and glass packaging due to the superior hygiene and quality standard is further anticipated to bolster the demand for PET resin in the coming years.</p><p><strong>Browse the Complete Report</strong>: <span><a href="https://www.chemanalyst.com/industry-report/india-polyethylene-terephthalate-pet-market-70"><strong>India Polyethylene Terephthalate (PET) Resin Pricing</strong></a></span></p><p><span>Food and Beverages industry constitutes over 50 per cent of the total demand for PET manufactured in India. As PET is one of the highly recyclable plastic products, government initiatives to push out the use of single-use plastics by 2022 amid concerns of perverse environmental outcomes has indirectly shifted the industries to engage in the use of recyclable plastic such as PET, hence, contributing widely to uptrend its demand.</span></p><p><strong><span>Chemical-Pricing:</span></strong> <span><a href="https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False"><strong>https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False</strong></a></span></p><p><span>Outbreak of Coronavirus in Q4 of FY 20 has slowed down the business in various industrial sectors as an outcome of lockdown and other preventive measures imposed by the government to contain the spread of the virus. However, Plastic, Pharmaceutical and Specialty Chemicals are among the few leveraged sectors witnessing an outshine in tough times of the crises. Rising awareness over hygiene and cleanliness has led to increased demand for packaged food and beverages as to avoid any chances of infection by contagion. Moreover, astonishing stress on the expansion of the Indian healthcare sector after Coronavirus Outbreak has also propelled the demand for PET bottles for storage of critical drugs and fluids, owing to the safety offered in handling coupled with its hygienic properties. Although the beginning of the final quarter witnessed a gradual slump in the production of PET due to halt in industrial activities put up in compliance to the preventive measures of Coronavirus. The demand witnessed appreciable recovery after mid-April 2020 affected by the ease in lockdown measures offered by the government in hopes of restoring the persistent sunk in economy. As the country is still struggling to bounce back from the devastating industrial downturn, domestic manufactures of PET are currently operating PET plants at less than 30 per cent efficiency owing to the reduced demand from automotive and electronic industry. However, the dilemma over complete abatement of Coronavirus in the country is likely to boost the demand for PET in the coming years as a result of shift in demand from aluminum and glass to plastic products. Government initiative of self-reliant India is also anticipated to play a major role in bracing the domestic PET market as the manufacturers will not be compelled to mark the prices of the product in line with the import prices in order to avoid material injury.</span></p><p><span>According to ChemAnalyst report, “</span><strong>India Polyethylene Terephthalate (PET) Resin Market: Plant Capacity, Production, Technology, Operating Efficiency, Demand & Supply, End Use, Type, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”</strong><strong>.</strong> Major players operating in the India PET market include Reliance Industries Limited, Dhunseri Petrochem & Tea Limited, JBF Industries Limited and Indorama Ventures Public Company Limited. As imports catering to a significant share of the total demand of PET in India, other companies satisfying the demand for PET in the country are , Toray Industries, Jiangsu Sanfangxiang Group, Eastman Chemical Company, Nan Ya Plastic Corporation, SABIC, BASF SE ,Far Eastern New Century Corporation etc. Reliance Industry is the largest domestic player with the maximum installed capacity 1000KTPA for PET production. As India already comprises of abundant installed capacity of PET, there are no proposed plans by any company to further expand the capacity in the next five years. With massive production of PET in India, the country also serves to fulfill the export demand from countries like Algeria, Egypt, Bangladesh, etc. With the current scenario of Coronavirus, domestic manufactures are anticipated to operate over 60% efficiency on negligible import and robust demand from packaging industry in the coming years.</p><p>“The recent initiative of Indian government for self-reliant India, has raised strong concerns over the chemical sector of India as it is highly dependent on imports of various feedstocks from European and Gulf Countries. However, plastic industry is expected to be one the most leveraged industries as majority of its products and feedstock account for appreciable production in the country. As MEG and PTA are produced in abundance within the country, the production of PET in India will not be hindered and will remain out of the risk even in the forecast period. This initiative can be a silver lining for the domestic manufacturers eyeing to widen their profit margins by catering to a high scale demand. As people across the globe are improvising their hygiene practices, they are keener to rely on packaged products to reduce risk of infection. In India, since PET is majorly consumed in the packaging industry, the demand for PET will continue to boom at a significant rate in the next five years .In addition to this, the increasing requirement for PET bottles from pharmaceutical and healthcare industry for storage of drugs and sanitizers is likely to drive the market growth in the forecast period. However, demand from other major industries like electronics and automotive will remain weak on slow economic growth and decline in per capita income of people as companies have been struck by strong financial slump as a ripple effect of Covid-19.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.</p><p><strong>Source: ChemAnalyst</strong></p></div>India’s Metallocene LLDPE Demand to Break Records and Register a CAGR of 7.21% by 2030https://globalriskcommunity.com/profiles/blogs/india-s-metallocene-lldpe-demand-to-break-records-and-register-a2020-05-19T16:00:00.000Z2020-05-19T16:00:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p><span><a href="{{#staticFileLink}}8028315471,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028315471,original{{/staticFileLink}}" class="align-left" alt="8028315471?profile=original" /></a></span></p><p><span>According to ChemAnalyst report, “<strong>India mLLDPE Market: Plant Capacity, Production, Operating Efficiency, Process, Technology, Demand & Supply, Grade, Application, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”,</strong></span> <span>India’s metallocene linear low-density polyethylene (mLLDPE) market is expected to grow at a healthy CAGR of 7.21% during the forecast period on account of increasing utilization of mLLDPE in manufacturing superior quality and high-performance films which makes it a material of choice over other Polyethylene for the downstream packaging applications. Increasing demand for mLLDPE films for diverse packaging applications due to their unmatched characteristics and economic benefits will propel the demand for mLLDPE in the forecast period.</span></p><p><strong><span>Browse Complete Report: <a href="https://www.chemanalyst.com/industry-report/india-mlldpe-market-69">India Metallocene linear low-density polyethylene (mLLDPE) Pricing</a></span></strong></p><p><span>Packaging sector accounts for about 70% share in India’s mLLDPE demand due to its remarkable properties like improved puncture and tear resistance. In addition, outstanding characteristics like high flexibility, lightweight, superior organoleptic properties, and outstanding hot tack and heat seal benefits make mLLDPE films stand at par with other packaging polymers used worldwide. Hence, mLLDPE is being popularly adapted for producing high-performance films applications such as stretch wraps, heavy duty shipping sacks, medical packaging, agricultural, food packaging films and many others. India’s rapidly expanding pharmaceutical sector which has a strong reliance on the packaging industry is likely to accelerate the demand for mLLDPE in the forecast period.</span></p><p><strong><span>Chemical-Pricing: <a href="https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False">https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False</a></span></strong></p><p><span>Sudden outbreak of COVID-19 rendered an unprecedented downfall in the feedstock ethylene due to crash in upstream crude values giving manufacturers an upper edge. However, demand downturn and trade restrictions pressurized the domestic manufacturers to temporary shut their production units. India’s mLLDPE volumes fell significantly in Q4 FY20 as GAIL had to shut its Pata plant to manage inventory against the evaporating demand due to slump in industrial activities during COVID-19. mLLDPE prices hovered between $1,260-1,280 per tonne CIF India in the fourth quarter of FY20 and are likely to remain pressured till Q2 FY21 due to bearish buying sentiments and wider price gap between C4 LLDPE and C6 mLLDPE in India. However, with recovery in demand the industry is likely to recover the incurred losses and witness remarkable growth in the next couple of years.</span></p><p><span>According to ChemAnalyst report, <strong>“India mLLDPE Market: Plant Capacity, Production, Operating Efficiency, Process, Technology, Demand & Supply, Grade, Application, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”,</strong> currently GAIL India Ltd. and RIL are the sole producers of mLLDPE in India. The country’s total installed mLLDPE capacity stands at 550 KTPA as of financial year 2020. In FY2019, GAIL (India) Ltd successfully produced Metallocene linear-low density polyethylene (mLLDPE) at its large 400 KTPA UNIPOL PE Reactor line located in Pata, Uttar Pradesh. Moreover, to reduce India’s reliance overall external catalyst suppliers, RIL is continuously working towards development of metallocene catalyst technology to produce mLLDPE resins with desired morphology and molecular weight characteristics through gas phase processes. However, since India still lacks in domestic mLLDPE manufacturing, it imports appreciable volumes of the polymer from international players like ExxonMobil Corporation, The Dow Chemical Company, Braskem, China Petrochemical Corporation (CPC), Mitsui & Co., INEOS, LyondellBasell Industries Holdings B.V. and Nova Chemicals Corporation.</span></p><p>“India’s packaging industry is among the fastest growing industry and is increasingly becoming a preferred hub of huge investments. Currently the 5<sup>th</sup> largest sector of the Indian economy, the packaging sector is predicted to grow at the rate of 18% annually, with annual growth in the flexible packaging sector expected to be 25% and rigid packaging to be 15% during the forecast period. Due to its high heat resistance and excellent mechanical performance, mLLDPE resins offer a high potential in the flexible packaging sector. With up to 25% downgauging opportunities mLLDPE films are highly compliant with the idea of “Circular Economy”, which major economies are striving for. Moreover, increasing penetration of the Government of India towards making India a global manufacturing hub through initiatives like “Make in India” and sector specific initiatives is likely to propel the demand for packaging polymers such as mLLDPE in the next six years. This has made domestic mLLDPE players highly optimistic about the market dynamics and eye on capacity expansions. Moreover, industrialists are keen to invest in the latest mLLDPE production technologies and downstream packaging developments which would create a huge momentum in the mLLDPE demand during the forecast period.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.</p><p><strong>Source: ChemAnalyst</strong></p></div>Global Cumene Demand to Reach 9 Million Tonne by 2030https://globalriskcommunity.com/profiles/blogs/global-cumene-demand-to-reach-9-million-tonne-by-20302020-05-13T14:00:00.000Z2020-05-13T14:00:00.000ZChemAnalysthttps://globalriskcommunity.com/members/ChemAnalyst<div><p><a href="{{#staticFileLink}}8028318671,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028318671,original{{/staticFileLink}}" class="align-full" alt="8028318671?profile=original" /></a></p><p>According to ChemAnalyst report, “<strong>Global Cumene Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”,</strong> the global Cumene market is projected to grow at a healthy CAGR of <strong>4.03%</strong> during the forecast period on account of robust rise in Cumene demand for manufacturing Phenol and Acetone which can be further processed to produce resins, paints & coatings, plastics or construction materials. Increase in demand for phenol in downstream Bisphenol A (BPA) sector, driven by strong growth in the polycarbonate production across the globe to bolster the demand for Cumene during the forecast period.</p><p><strong>Browse the Complete Report : <a href="https://www.chemanalyst.com/industry-report/cumene-market-55" target="_blank">Cumene News, Demand and Supply</a></strong></p><p>Acetone and Phenol production accounts for about 95% share in the global Cumene demand with Phenol leading the market share. Moreover, exceptionally rising Acetone demand globally for manufacturing Iso Propyl Alcohol (IPA), a key ingredient in alcohol-based hand sanitizers has further contributed to spike in Cumene demand during the current scenario of COVID-19 pandemic. Furthermore, increasing use of solvents in diverse industries such as paints and adhesives, pharmaceuticals and cosmetics will further drive the Cumene demand during the forecast period globally. Other application of Cumene include its potential to be used as a blending component due to its high-octane number.</p><p><strong>Chemical-Pricing: <a href="https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False">https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False</a></strong></p><p>According to ChemAnalyst report<strong>,</strong> UOP technology is the most sought-after technology for the industrial production of Cumene, with many companies investing in advanced formulations of the traditional technique. Recently, PKN Orlen announced to utilize Honeywell’s UOP Q-Max and Phenol 3G technology for converting Orlen’s benzene and propylene into high-quality Cumene at low benzene-to-propylene ratios using regenerable catalysts. In addition, leading producers like INEOS are investing heavily in future expansion projects to contribute to the global Cumene demand in the forecast period. In 2019, INEOS signed agreement with Evonik Chemiepark, to build a new Cumene unit having capacity of 750KTPA. Major players in the global Cumene market include CEPSA, INEOS Phenol, Sunoco Inc., Georgia Gulf, Flint Hills Resources, Koch Petroleum, Shell Chemical, Mitsui Chemicals, Chang Chun Group, Citgo Petroleum Corporation, Deepak Nitrite Limited etc.</p><p>Global economic slowdown caused due to Covid-19 has strongly impacted Cumene international prices in 2019 causing them to dip sharply. In addition, the ChemAnalyst report analyzes the impact of feedstock benzene and refinery crude propylene (RGP) on Cumene’s pricing trend. Slump in crude values and Cumene feedstocks, have pressurized global Cumene contract prices in Q1 2020. US Cumene prices plummeted by 43% in April 2020, hovering between $380-398/tonne over the previous month. The prices recorded 11 years lows tracing benzene and propylene values, drastically hit due to crude price crash from the ongoing coronavirus crisis. Global Cumene prices are expected to head towards recovery after the feedstock prices match pre-Covid-19 levels with reopening of economies around the world which would eventually push crude prices higher.</p><p>Regionally, the Cumene market has been segmented into various regions including Asia-Pacific, North America, South America, Europe, and Middle East & Africa. According to ChemAnalyst report, Asia-Pacific has witnessed a strong boost in Cumene demand over recent years, outpacing slow growth in North American and European markets. Huge investments in construction of bigger phenol and acetone capacities in Asia-Pacific will cause this trend to continue in the future. APAC is expected to account for 42.26% of global Cumene demand by 2020.</p><p>“The global Cumene market is currently surplus in capacity and sluggish demand for its derivatives and weakened upstream values have almost halted the global Cumene production. However, players are optimistic and anticipating huge benefits after the shutdown of Philadelphia Energy Solutions which took place 2019 due to a major fire accident. The refinery's Cumene unit which had a capacity of 612,000 KT made approximately $1 million impact on AdvanSix’s quarterly sales. At the same time, this opened a wider opportunity for its competitors and exporters who are counting on profits as soon as the economies head towards recovery. Major players are currently optimizing the logistics and enhancing the network of Cumene suppliers to recover the losses incurred due to pandemic.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.</p><p><strong>Source: ChemAnalyst</strong></p></div>Market Research Subscription Model | KBV Researchhttps://globalriskcommunity.com/profiles/blogs/market-research-subscription-model-kbv-research2019-03-19T09:28:21.000Z2019-03-19T09:28:21.000ZKBV Researchhttps://globalriskcommunity.com/members/KBVResearch<div><p><strong>All about Subscription Model</strong></p><p>A <a href="https://kbvresearch.com/subscription-model/">subscription model</a> is based on the idea of selling a product or service to obtain monthly or yearly subscription revenue. The model primarily focuses on customer retention rather than customer acquisition. Essentially, subscription models pay attention to the way revenue is made, i.e., they look for ways in which a single customer pays multiple payments for prolonged access to a good or service.</p><p><a href="{{#staticFileLink}}8028286072,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028286072,original{{/staticFileLink}}" class="align-center" alt="8028286072?profile=original" /></a></p><p>Market research subscription services provide a one-off value by offering a library of exhaustive research and report information to the clients at a customizable and fixed cost. Therefore, investing in a research subscription model would give the users with the quantity of information that they need along with an assurance of the quality of specialized research which would prove to be imperative to the success of their business projects.</p><p></p><p><strong>Benefits of Subscription Models</strong></p><p>Instead of dependence and unpredictability, the subscription model leads a sense of regularity. This enables the new subscribers to only sign up for new services and side by side to help organizations in improving their billing cycles. In time, a business would witness a steady income from an on-demand product exclusively for businesses who look for a higher conversion rate.</p><p>The research subscription model provides direct access to a storehouse of industry-specific reports. This would not only save time in locating the reports that they need but also, it would eliminate the need for making additional purchases. Furthermore, with the subscription-based reports, clients have full access to the reports which ensures that the information that’s stored within is meeting the criteria of clients or not. This benefit is especially important when the clients focus on a specialized vertical, as for that, it becomes crucial that the research they acquire is deep-dived, thorough, and accurate.</p><p></p><p><strong>Subscription models are beneficial for both sides of transactions</strong></p><p>Today’s highly digital and evolving technological society requires comfort over almost everything else. Owing to this, subscription commerce enterprises are thriving, as customers desire to eradicate the inconvenience of buying items over and over again. Companies also reap benefits from their subscription model, as satisfied clients are likely to return for future purchases, thereby improving the relationship between companies and clients.</p><p>This is particularly important today for small enterprises as competition in the private sector increases in the continuing economic crisis and makes it harder for companies to survive. Luckily, small businesses are able to use the subscription model the same way a large scale enterprise uses the model, this would also give start-ups a competitive advantage.</p><p>Keeping the aforementioned benefits into consideration, KBV Research has come up with its own <a href="https://kbvresearch.com/subscription-model/">Research Subscription Model</a>. The model not only aims towards providing benefits to its clients but also, focuses upon improving the client-centric environment offered by the company. Furthermore, the <strong>KBV Research Subscription Model</strong> is designed to satisfy each client’s requirement. The core of the model is to enable users to have choices in terms of titles and pricing. The model also ensures guaranteed best pricing.</p><p></p><p><strong>Subscription billing vs. Single Report Payment- Who wins?</strong></p><p>Recent researches have established that subscription models are 200% more profitable for enterprises as compared to a one-time payment model. With subscriptions, research companies can ensure greater efficiency and get their clients to associate with their reports better and receive a higher remuneration. Nearly 70% of businesses believe that acquiring a new customer base is relatively more expensive than retaining their existing clients, therefore with a subscription model, businesses can continue to make money from users after acquiring them.</p><p><a href="{{#staticFileLink}}8028286089,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028286089,original{{/staticFileLink}}" class="align-center" alt="8028286089?profile=original" /></a></p><p>Instead of paying expensive bills for every purchase, consumers prefer the lower upfront expenses which are now possible with buying reports through a subscription. What’s more, monthly or other periodic payments are often provided to the clients at a discount, which enhances the overall satisfaction. The Subscription Model provides better user experience ensuring up-to-date reports. While a subscription model encompasses a wide range of benefits, businesses should evaluate the pros and cons of the model before implementing it.</p></div>An interview with mBank: Funds Transfer Pricing frameworks to account for new IRRBB and capital regulationshttps://globalriskcommunity.com/profiles/blogs/an-interview-with-mbank-funds-transfer-pricing-frameworks-to2016-08-29T12:30:00.000Z2016-08-29T12:30:00.000ZMelini Hadjitheorihttps://globalriskcommunity.com/members/MeliniHadjitheori<div><p>Considering the current climate is loaded with regulatory and market changes, funds transfer pricing frameworks must be adapted in such a way to account for this without losing competitive edge. In order to optimise the practice of FTP, banks need to understand how it can be implemented alongside evolving regulations and market changes. This marcus evans conference will show banks how to shape their FTP methodologies according to regulations such as the liquidity and capital regulations and apply these methods to the products they offer.</p><p>Ahead of <strong>the 6th Annual Funds Transfer Pricing and Balance Sheet Management conference,</strong> we spoke with Mrs. Monika Bączyńska, Head of ALM at mBank about the IRRBB regulations affecting FTP management.</p><p style="text-align:center;"><strong>READ THE INTERVIEW <a href="http://bit.ly/2c39ZQX" target="_blank">HERE</a></strong></p><p>About the speaker:<br /> Monika Bączyńska is a Head of ALM at mBank. Monika has extensive experience in managing both interest rate risk of banking book and liquidity risk, FTP rules and hedge accounting. She is also responsible for development of funding strategy as well as planning and forecasting. Before joining ALM, Monika was a Director of Analysis and Control Bureau, responsible for controlling and risk functions for Financial Market Division. She served as an advisor in FX position transfer models and accounting schemes for structured products with embedded options. Monika participated in a number of projects related to FTP policy, capital model, liquidity risk models, stress-testing, MIS and RWA optimization. Prior to joining mBank, she served as an auditor of financial institutions with EY. Monika is a CFA charter holder and Professional Risk Manager.</p><p class="lplh-32"><span><span><span><span>About the conference:<br /></span></span></span></span> This marcus evans event will provide banks with a platform to learn from practical examples of how others are already incorporating the liquidity and capital regulations into their FTP models as well as insight into future developments. Furthermore, we will build on previous years by providing expert speakers to demonstrate how to adapt FTP methodologies to suit negative interest rates and forthcoming interest rate risk regulations as well as best practices. The <strong>6th Annual Funds Transfer Pricing and Balance Sheet Management conference</strong> will take place from the 14th to 16th September 2016 in London, United Kingdom.</p><div class="lp-element lp-pom-text nlh" id="lp-pom-text-206"><div class="lplh-22" style="text-align:center;"><strong>READ THE INTERVIEW <a href="http://bit.ly/2c39ZQX" target="_blank">HERE</a></strong></div><div class="lplh-22"></div><div class="lplh-22"><p>For more information about the event, please contact:<br /> Melini Hadjitheori<br /> T: +357 22849 308<br /> E: MeliniH@marcusevanscy.com</p></div></div></div>Interview with Christian Pichlmeier, CFA, Senior Vice President, Corporate Treasury, Institutional Clients Group at Citihttps://globalriskcommunity.com/profiles/blogs/interview-with-christian-pichlmeier-cfa-senior-vice-president2013-04-18T14:30:34.000Z2013-04-18T14:30:34.000ZMichele Westergaardhttps://globalriskcommunity.com/members/MicheleWestergaard<div><p>Funds transfer pricing is under increasingly sharp focus. Financial institutions need to respond to Basel III, as well the Dodd-Frank Act in order to change the way their liquidity is managed and regulated. The efficiency, with which banks adapt their business strategy and their FTP model, will be a deciding factor in the future profitability of core product lines.</p><p>Christian Pichlmeier, CFA, Senior Vice President, Corporate Treasury, Institutional Clients Group at Citi answered a series of questions written by GFMI before the forthcoming <a href="http://www.marcusevans-conferences-northamerican.com/FTP2013_CP">2nd Annual Funds Transfer Pricing and Balance Sheet Management Conference</a>, May 15-17, 2013 in New York, NY. <i>All responses represent the views of Mr. Pichlmeier and not necessarily those of Citi.</i></p><p><b>How do you feel regulation is impacting the use of FTP?</b></p><p><b>Christian Pichlmeier:</b> The main focus of regulators during the last couple of years was clearly on Liquidity Coverage Ratio and how to define it. I think with this topic under control, regulators will turn their attention to other areas. Transfer pricing seems to be very high on the priority list.<br /> <br /> While the FSA in the UK has already published several documents on Transfer Pricing, the topic is less developed in the US. I expect that regulators will require financial institutions to demonstrate that they have developed a Transfer Pricing Framework; which is applied globally for all their business lines and allocates liquidity costs down to the individual decision maker.</p><p><b>How can FTP be integrated into the banks business model?</b></p><p><b>CP:</b> It is going to be critical to distinguish between business segments which use up a higher share of unsecured funding, and those which have predominantly liquid assets and access to cheaper funding. At the end of the day, it only makes sense to engage in a business segment if it is able to cover all its costs. Liquidity costs play a major role here. Management will have maximum transparency if all cost components are allocated such the economics of businesses become clear.</p><p>The major tasks will be to develop a liquidity cost curve which takes into account the funding costs a particular institution faces based on their own credit rating and accessibility of the capital markets. This curve is going to be used to price businesses and products adequately across the firm.</p><p><b>At the conference you are focusing on secured vs. unsecured funding. What do you feel are the issues with modelling these two products?</b></p><p><b>CP:</b> These segments are very different from a transfer pricing standpoint. Secured funding is mainly a question of accessing functioning repo markets. The critical point is in determining haircuts for a variety of different collateral classes. Unsecured funding is dependent on the credit standing of the individual institution and at which price investors are willing to lend money to an institution.</p><p>It is important to stress though, that there are interrelations between the two markets. The best example is the difference in haircuts between assets and liabilities. If an institution is faced with higher haircuts on the liability side, the resulting difference has to be funded unsecured. There are very few institutions today which factor these costs into their transfer pricing framework.</p><p><b>What do you feel will be gained on attending the conference?</b></p><p><b>CP:</b> Attending the conference will be a great way to interact with financial professionals who are faced with the exact same task for their individual institution: developing a model to allocate liquidity costs. There is a lot to learn in terms of best practice models. At the same time, requirements can be very specific to the individual institution which opens up different views and expands the individual horizon.</p><p>Attendants will gain a much deeper understanding of the importance of transfer pricing and I am convinced that a lot of the concepts will be very practical and can be applied to day to day business.</p><p><b>Christian Pichlmeier, CFA,</b> is a Senior Vice President for Corporate Treasury at Citi. Through his work he is exposed to the management of liquidity for Citi's broker/dealer operations, in particular global liquidity transfer pricing and analytics for secured financing activities. Previously, he was Treasurer of the New York branch for HSH Nordbank AG.</p><p>For more information please contact Michele Westergaard, Senior Marketing Manager, Media & PR, marcus evans at 312-540-3000 ext. 6625 or <a href="mailto:Michele@global-fmi.com">Michele@global-fmi.com</a>. </p></div>‘xVA’s’ have found their way in to pricing and valuationhttps://globalriskcommunity.com/profiles/blogs/xva-s-have-found-their-way-in-to-pricing-and-valuation2013-04-17T09:30:00.000Z2013-04-17T09:30:00.000ZTom Riesackhttps://globalriskcommunity.com/members/TomRiesack<div><p>A common theme emerged on the first day at the Global Derivatives Trading and Risk Management Conference. CVA, DVA and FVA (but also a number of other components) have found their way into pricing and valuation models of financial institutions after the financial crisis of 2008.</p><p>After a macro-economic assessment by David Nowakowski of Roubini Global Econmics, which drew a somewhat grim picture with especially China being in slow-down, famed John Hull took up the stage to speak about the implications of the Funding Value Adjustment (FVA).</p><p>FVA can be defined as the difference between valuing a portfolio of uncollateralized transactions using the assumed "risk-free" rate (which is typically the OIS rate or LIBOR) and valuing it using the bank's actual (!)average funding cost.</p><p>Hull made it clear that the theoretical funding of a bank will mostly be divergent from the actual funding requirement. This makes it quite difficult for banks to incorporate FVA into their pricing and still find a common ground with their counterparty to actually close the deal.</p><p>In the following panel discussion JesperAndreasen, Global Head of Quantiative Research at Danske Bank and two-time Quant of the Year, stated the financial crisis has propelled financial institutions to incorporate credit and funding risk into their pricing and valuations models.</p><p>Andrew Green from Lloyds Banking Group then gave a detailed introduction into the new pricing paradigm after the crisis and the new components that flow into pricing compared to before the crisis.</p><p><a href="{{#staticFileLink}}8028222866,original{{/staticFileLink}}"><img width="500" src="{{#staticFileLink}}8028222866,original{{/staticFileLink}}" class="align-full" alt="8028222866?profile=original" /></a></p><p>It shows the rising complexity of but also interdependence between pricing components. Subsequent presenters, who were delving deep into the construction of applicable models and their various components, proved this as models and even the derivation of model components has grown more and more complex over recent years.</p><p>The role of the quant will grow more important to financial institutions trading derivatives to ensure that pricing and subsequent valuation will be nearer to the truth. But we should not forget two things.</p><p>Firstly, all modelling will always be an approximation of the reality. As such, it seems sensible for market participants to find equilibrium of ever-more detailed models verses the effort one has to invest into creating them.</p><p>And secondly, and in my mind more importantly, smaller buy-side clients need to be taken on an educational journey to give them the ability to understand the more complex math behind today’s derivatives pricing. This would go a long way to foster and maintain good client relationships.</p><p>Also see original post here: <a target="_blank" href="http://theotcspace.com/2013/04/17/xvas-have-found-their-way-in-to-pricing-and-valuation">http://theotcspace.com/2013/04/17/xvas-have-found-their-way-in-to-pricing-and-valuation</a>/</p></div>A New Quantitative Approach: Advanced Exposure and CVA for Exotic and Vanilla Instrumentshttps://globalriskcommunity.com/profiles/blogs/a-new-quantitative-approach-advanced-exposure-and-cva-for-exotic2012-10-23T19:00:00.000Z2012-10-23T19:00:00.000ZCristin Rifflehttps://globalriskcommunity.com/members/CristinRiffle<div><p>Syndicated Content Originally Posted on the <a href="http://blog.numerix.com" target="_blank">Numerix Blog</a></p><p><a href="http://blog.numerix.com/public/2012/10/a-new-quantitative-approach-advanced-exposure-and-cva-for-exotic-and-vanilla-instruments.html" target="_blank">http://blog.numerix.com/public/2012/10/a-new-quantitative-approach-advanced-exposure-and-cva-for-exotic-and-vanilla-instruments.html</a></p><p>By now, we all realize that financial practitioners around the globe are facing increasing challenges when it comes to computing complex risk and credit exposure calculations for both their exotic and vanilla derivative instruments. Given all we've learned about the importance of calculating counterparty risk post-2008, along with the growing need to meet ever-evolving regulatory requirements, finding more accurate and efficient ways to reign-in cumbersome counterparty exposure calculations has become more important than ever.</p><div class="entry-body"><p>That's why, there's no better time than the present to explore new ways to conquer these seemingly colossal calculations. As a result, today's blog discussion will highlight some new quantitative approaches for dealing with advanced exposure and CVA for exotic and vanilla instruments, as revealed during a recent Numerix webinar conference.</p><p> "This webinar covers two important aspects of computing exposures and CVA," says Dr. Serguei Issakov, Senior Vice President of Quantitative Research and Development at Numerix. "The first part presents a general, uniform, approach to compute exposures and CVA for arbitrary deal types. This is a modern approach, which also allows aggregation of exposures across all asset classes consistently. The second part addresses special methods of fast and accurate computation of exposures and CVA for large portfolios of IR swaps, FX Forwards, and cross-currency swaps. The latter compliments the general approach and allows us to handle counterparty risk of large vanilla portions of portfolios in a more efficient way. A paper on this "superswap" approach, which is based on aggregating cashflows for linear instruments was submitted to <a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2160342">SSRN</a> last week. These methods are already available in Numerix products." </p></div><p> In the first part of the webinar, "<a href="https://numerix.webex.com/numerix/lsr.php?AT=pb&SP=EC&rID=5913737&rKey=ce3c1c67ab2463db">A New Quantitative Approach: Advanced Exposure and CVA for Vanilla and Exotic Instruments,</a>" Dr. Alexandre Antonov, Senior Vice President of Quantitative Research at Numerix, discusses an algorithmic approach for Counterparty exposure calculation, automating its application to arbitrary complicated instruments. "Assuming that the portfolio is priced by the backward (American) Monte-Carlo method, our approach allows calculating the credit exposure as a pricing by-product, essentially without modifications in the usual pricing procedure," Dr. Antonov explains.</p><p>He demonstrates how this algorithmic approach is advantageous for exotic and semi-exotic instruments; and, as the webinar unfolds, we come to see how calculating exposure in parallel with pricing enables a unified, more efficient approach to be taken, when it comes to computing complex risk measures.</p><p> <strong>A New Algorithmic Exposure Approach for Exotics and Semi-Exotics</strong></p><p> <em>Below are some highlights to consider from this discussion; and, for a full description of this new approach, including specific examples, we recommend reading the</em> <em>full <br /> technical paper [1] from the list of references.</em></p><p>When we look at the Exposure Calculation, the <em>direct approach</em> calculates all components in the backward pricing procedure and assemble them afterwards, by a forward pass. However, this requires substantial script modifications, including both backward and forward steps with a cumbersome logic of exercise indicators calculation and aggregation, Dr. Antonov explains. It can be very complicated for exotic instruments with different types of exercises, like callable instruments with automatic triggers.</p><p>Alternatively, the new approach outlined in our research —which we call <em>the algorithmic approach</em>— overloads continuation values operations to obtain the exposure as a byproduct of the pricing procedure. Essentially, the algorithmic exposure calculation is done in parallel with pricing. From a numerical performance perspective, it should also be noted that our exposure calculation does not significantly affect the computational effort with regard to the usual backward pricing, Dr. Antonov concludes.</p><p><strong>A New "Thin-Out" Method for Vanillas</strong></p><p><em>Below are some highlights to consider from this discussion; and, for a full description of this new approach, including specific examples, we recommend reading</em> <em>the</em> <em>full <br /> technical paper [2] from the list of references.</em></p><p>In the second part of the webinar, Dr. Antonov uncovers how exposure calculation for vanilla instruments can be further optimized using a new "thin-out" method. This method reduces exposure computation time for a large portfolio of vanilla swaps to a single swap with nearly annual schedule. We come to see that the approximation quality of the "thin-out" procedure is particularly high.</p><p>The main technical tool used in this approach is a thin-out procedure for a fixed payment stream. A natural optimization for a portfolio of vanilla swaps is the aggregation of all payments into a 'superwap,' explains Dr. Antonov. Thereby, we aggregate the cashflows to represent the portfolio as a superswap. </p><p><strong> Numerical Experiment for "Thin-Out" Method</strong><br /> <br /> Now, let's take a look at a numerical experiment, given the following attributes:</p><ul><li>Model: Hull-White 1-factor model</li><li>Volatility = 1%, reversion = 4%, initial constant yield = 1%</li><li>1000 random IR swaps, with tenors out to 20Y</li><li>Thin-out equally spaced intervals of 6M, 1Y, 2Y and 5Y<br /> <em>( </em><em>[2] S</em><em>ee AB (2012) for other methods of construction of thin-out dates)</em></li><li>Observation dates Tn are out to 20Y, at 1M intervals</li><li>Output: Initial master Payment Stream (PS) vs. its reduced version and CVA**<a class="asset-img-link" href="http://blog.numerix.com/.a/6a011570f0b826970c017c32b8e8f5970b-pi" style="display:inline;"><img alt="BLOGCVACVAWebinar_ThinOutExample1_10_18" class="asset asset-image at-xid-6a011570f0b826970c017c32b8e8f5970b image-full" src="http://blog.numerix.com/.a/6a011570f0b826970c017c32b8e8f5970b-800wi" title="BLOGCVACVAWebinar_ThinOutExample1_10_18" border="0" /></a></li></ul><p><a class="asset-img-link" href="http://blog.numerix.com/.a/6a011570f0b826970c017c32b8d743970b-pi" style="display:inline;"><img alt="BLOGCVA_image1" class="asset asset-image at-xid-6a011570f0b826970c017c32b8d743970b image-full" src="http://blog.numerix.com/.a/6a011570f0b826970c017c32b8d743970b-800wi" title="BLOGCVA_image1" border="0" /></a><a class="asset-img-link" href="http://blog.numerix.com/.a/6a011570f0b826970c017d3ce76da8970c-pi" style="display:inline;"><img alt="BLOGCVAWebinar_TableCVAforPortfolio1000SwapsExample_10_18" class="asset asset-image at-xid-6a011570f0b826970c017d3ce76da8970c image-full" src="http://blog.numerix.com/.a/6a011570f0b826970c017d3ce76da8970c-800wi" title="BLOGCVAWebinar_TableCVAforPortfolio1000SwapsExample_10_18" border="0" /></a>In conclusion, we can see the new thin-out approach is an efficient (accurate and fast) optimization method for exposure calculation of large portfolios of IR swaps, based on a thin-out procedure of payment streams and proper handling of path-dependent streams. And, it should also be noted that this method can be easily generalized to multi-currency swaps, including CC swaps and FX-forwards.</p><p> <em>[2]</em> <em>Other experiments, including exposure distribution are presented in AB (2012)</em></p><p><strong>Read More</strong></p><p>For more detailed information regarding the above, read the recently published technical papers and news release listed below:</p><p><em>[1]</em> Alexandre Antonov, Serguei Issakov and Serguei Mechkov (2011),<br /> "Algorithmic Exposure and CVA for Exotic Derivatives"</p><p><a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1960773">Available at SSRN</a>.</p><p> <em>[2]</em> Alexandre Antonov and Dominic Brecher (2012),<br /> "Exposure & CVA for Large Portfolios of Vanilla Swaps: the Thin-out Optimization"</p><p> <a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2160342">Available at SSRN</a>.</p><p>Numerix Introduces a New Algorithmic Method for Calculating Counterparty Exposure and its Application to Complex Risk Measures</p><p><a href="https://numerix.webex.com/numerix/lsr.php?AT=pb&SP=EC&rID=5913737&rKey=ce3c1c67ab2463db">View the webinar replay now</a> or contact <a href="mailto:marketing@numerix.com">marketing@numerix.com</a> for more information.</p></div>Addressing the LIBOR Debate: The Role of LIBOR in the Valuation of Derivativeshttps://globalriskcommunity.com/profiles/blogs/addressing-the-libor-debate-the-role-of-libor-in-the-valuation-of2012-10-23T15:30:00.000Z2012-10-23T15:30:00.000ZCristin Rifflehttps://globalriskcommunity.com/members/CristinRiffle<div><h3 class="entry-header">Syndicated Content from the Numerix Blog - <a href="http://blog.numerix.com/public/2012/10/addressing-the-libor-debate-the-role-of-libor-in-the-valuation-of-derivatives.html" target="_blank">Find Original Post Here</a></h3><div class="entry-body"><p>In this video blog, Numerix Host <a href="http://bit.ly/NMEuea" target="_blank" title="Jim Jockle, SVP Marketing, Numerix">James Jockle</a>, SVP of Marketing, and <a href="http://bit.ly/SO3jmX" target="_blank" title="Satyam Kancharla, SVP CLient Solutions Group, Numerix">Satyam Kancharla</a>, SVP of the Client Solutions Group at Numerix, sit down to discuss the changing role of <a href="http://www.numerix.com/glossary_libor" target="_blank" title="Libor Defined - Numerix Glossary">Libor</a> in the valuation of derivatives, along with an overview of some of the new recommendations in the market. Kancharla discusses how <a href="http://www.numerix.com/glossary_libor" target="_blank" title="Libor Defined - Numerix Glossary">Libor</a> is likely to change, new proxies coming to the market, the <a href="http://www.hm-treasury.gov.uk/wheatley_review.htm" target="_blank" title="HM Treasury Wheatley Report">Martin Wheatley report</a>—and how all of this will impact the complexity of the derivatives valuation process going forward.</p><h2><strong>Numerix Video Blog - <br /> Addressing the LIBOR Debate: The Role of LIBOR in the Valuation of Derivatives<br /></strong></h2><p> <iframe width="480" height="270" src="http://www.youtube.com/embed/E2IdU5lgaH4?fs=1&feature=oembed&wmode=opaque" frameborder="0"></iframe></p><p></p></div><div class="entry-more"><strong>What do you think?</strong> <br /> Weigh in and continue the conversation on <a href="http://bit.ly/PB2IGx" target="_blank" title="Numerix on Twitter">Twitter @nxanalytics</a>, <a href="http://www.linkedin.com/company/numerix" target="_blank" title="Follow Numerix on LinkedIn">LinkedIn</a>, or in the comments section below.<p><strong>Numerix Video Blog Transcript - Addressing the LIBOR Debate: The Role of LIBOR in the Valuation of Derivatives</strong></p><p>Jim Jockle (Host): Hi. Welcome to the Numerix video blog. I’m your host <a href="http://bit.ly/NMEuea" target="_blank" title="Jim Jockle, SVP Marketing, Numerix">Jim Jockle</a>, and with me today <a href="http://bit.ly/SO3jmX" target="_blank" title="Satyam Kancharla, SVP CLient Solutions Group, Numerix">Satyam Kancharla</a>, SVP of the Client Solutions Group at Numerix. Welcome.</p><p>Satyam Kancharla (Guest): Hi Jim. Thank you</p><p>Jockle: Addressing the <a href="http://www.numerix.com/glossary_libor" target="_blank" title="Libor Defined - Numerix Glossary">Libor</a> debate: Clearly there are lots of headlines going on around this, there are many different recommendations and new proxies coming to market, but really what I want to do today, is focus on the role of <a href="http://www.numerix.com/glossary_libor" target="_blank" title="Libor Defined - Numerix Glossary">Libor</a> in the valuation of derivatives. I think one of the key issues that I know we’ve spoken about as we think about all of these different proposals, are what are the implications going forward when we think about the valuation. So, why don’t you just give us a brief overview of some of these recommendations in the market?</p><p>Kancharla: So, the first thing to note, is that <a href="http://www.numerix.com/glossary_libor" target="_blank" title="Libor Defined - Numerix Glossary">Libor</a> has traditionally represented the unsecured lending between banks, which we know is not taking place. But, what is taking place is secured lending, secured by collateral. Which is why <a href="http://blog.numerix.com/public/2012/09/ois-discounting-to-clear-or-not-to-clear.html" target="_blank" title="OIS to Clear or Not To Clear - Numerix Video Blog">OIS</a> has come into prominence, <a href="http://blog.numerix.com/public/2012/09/ois-discounting-to-clear-or-not-to-clear.html" target="_blank" title="OIS to Clear or Not To Clear - Numerix Video Blog">as we’ve discussed in the past</a>. So, what that means is that more and more <a href="http://blog.numerix.com/public/2011/11/ois-discounting-and-otc-derivatives-demystifying-the-confusion.html" target="_blank" title="OIS Discounting and OTC Derivatives: Demystifying the Confusion">derivatives are marked as of OIS</a>, and that means from the valuation perspective that OIS becomes a benchmark, and not only do you have to model Libor, which continues to be important, but also the <a href="http://blog.numerix.com/public/2010/09/pricing-and-hedging-overnight-index-swaps-two-possible-approaches.html" target="_blank" title="Pricing and Hedging Overnight Index Swaps: Two Possible Approaches">OIS for the discounting</a>.</p><p>As for Libor itself, what we’ve seen from the <a href="http://www.foxbusiness.com/news/2012/09/28/central-bank-overnight-rates-suggested-as-libor-alternatives/" target="_blank" title="Central Bank, Overnight Rates Suggested as Libor Alternatives Read more: http://www.foxbusiness.com/news/2012/09/28/central-bank-overnight-rates-suggested-as-libor-alternatives/#ixzz2A3F7qyVu">report</a> that recently came out, which <a href="http://www.guardian.co.uk/business/2012/sep/25/bba-libor-setting-role-stripped-banks" target="_blank" title="British Bankers' Association to be stripped of Libor rate-setting role">calls for a new financial conduct authority to replace BBA</a>, is a number of changes in the way Libor is measured and reported. One is, <a href="http://www.businessweek.com/news/2012-10-08/libor-now-set-by-six-banks-losing-status-as-a-benchmark" target="_blank" title="Bloomberg - Libor Set By Six Banks">a lot more banks are now going to be involved</a>, or at least requested that they be involved in the Libor-setting process. Secondly, the <a href="http://www.bbalibor.com/" target="_blank" title="British Bankers Association">BBA</a>, or <a href="http://www.centralbanking.com/central-banking/news/2218373/uk-endorses-wheatley-report-to-fix-libor" target="_blank" title="UK endorses FCA's Wheatley report to fix Libor">FCA</a> rather, is actually going to <a href="http://washpost.bloomberg.com/Story?docId=1376-MB2AEM07SXKX01-2388JPCHBANL1I4OUS8U31VLFG">drop some currencies</a>. So, we are no longer going to see Libor for the Australian dollar, for example. So that is an interesting question, and we’ll see what happens to all those deals in the market.</p><p>Jockle: So, let’s think about that, let’s take the first scenario. So, more contributors… Libor has been historically at a low fixed rate. If you have more contributors, what are the implications to the Libor numbers themselves?</p><p>Kancharla: So one of the possibilities, and this is being discussed in the media, is that if you have more contributors, naturally you are going to attract those that don’t have the same credit ratings as the top 20, or the top 10 banks. What that means is that the Libor from that perspective is going to be higher. And, there is another reason that it is going to be higher, which is that because of the increased oversight on Libor-setting, what we see is that the Libor reported has to be closely tied to actual transactions, which again we know are not many. So, it is likely that the Libor setting will move up. And, the big question is, do we transition to this new set of Libor procedures over time-or, do we make a sudden shift? And, when we make that sudden shift, we could see a jump in that Libor value, which as we know, is used to mark about 350 trillion in currency transactions, and other transactions.</p><p>Jockle: So flowing that through to rates, FX, FRAs, where you have that kind of jump, I mean clearly you have <a href="http://blog.numerix.com/public/2010/09/pricing-and-hedging-overnight-index-swaps-two-possible-approaches.html" target="_blank" title="Pricing nd Hedging Overnight Index Swaps; Two Possible Approaches">OIS discounting</a> coming now, as being driving by LCH as part of the margining, also when looking at the standard CSA, right, we’ve had the diversions between OIS and Libor, and those spreads, and they have pretty much normalized with a couple of hiccups over time, given the market volatility. If you have that kind of jump in Libor itself, how is that going to flow through to the valuations of the instruments?</p><p>Kancharla: Well, once the Libor procedures are put in place, and there are time lines that are put in place, what we will likely see is that forwards and long-dated swaps will be marked using the new metrics. And, the market will take a view on how the Libor is likely to change. You will see a forward market that is already moving, as soon as some announcements are being made. And then, once the procedure is put into place, you will actually see the FCA-computed Libor that will come into the picture, and we will no longer have this old Libor. But, the big question is what does that mean for the different people who have loans that are linked to Libor, or swaps that are linked to Libor. You stand to lose or gain, depending on how you are positioned against Libor.</p><p>Jockle: So, I think it’s well documented by many market participants that they want to stay with Libor, because of so many contracts, so many legal docs being pegged to Libor, but yet we are seeing other proxies, the dual curve methodology between OIS as well, what is the role of these other proxies that are coming to market?</p><p>Kancharla: What I see happening actually, is in the short term, we will see these Libor review steps taking place, but in the long term, I do see as has been outlined in the Martin Wheatley report, that we will see some of these LIBOR alternatives coming into prominence. And, Libor today is used for so many different use cases. The report actually calls for us to review, and for regulators to review the usage of Libor in these different situations and replace them with alternatives, like the <em>OIS obviously, but also s</em>hort-term debt is a possibility, another is the repo-dependent curve, there is a repo curve that the DTCC has come up with as you know, and also CD and CP rates can be used for benchmarking.</p><p>Jockle: So, to sum up very quickly, there is a lot more <a href="http://blog.numerix.com/public/2011/02/otc-derivatives-valuation-adoption-of-multiple-pricing-curves.html" target="_blank" title="OTC Derivatives Valuation: Adoption of Multiple Pricing Curves">complexity</a> than what we’ve seen in the past?</p><p>Kancharla: Yes, absolutely.</p><p>Jockle: OK. Satyam, I know we have a lot more to talk about on this, but I think we’ve hit our time. Thanks for joining our video blog on the Libor debate and valuation of derivatives, I’m Jim Jockle, and we’ll see you next time.</p><p>Kancharla: Thank you.</p><p>Jockle: Please follow nxanalytics on twitter, as well as check out our regular blog on numerix.com for regular updates. Any ideas and suggestions please feel free to <a href="mailto:jjockle@numerix.com" target="_blank" title="jjockle@numerix.com">email me</a> or email <a href="mailto:marketing@numerix.com" target="_blank" title="marketing@numerix.com">marketing@numerix.com</a>.</p></div></div>8 situations where time intertwines with riskhttps://globalriskcommunity.com/profiles/blogs/8-situations-where-time-intertwines-with-risk2012-06-09T10:23:54.000Z2012-06-09T10:23:54.000ZMartin Davieshttps://globalriskcommunity.com/members/MartinDavies92<div><p><span style="font-family:arial, helvetica, sans-serif;" class="font-size-2"><font face="Verdana, sans-serif">A recent debate on the ISO 31000 Linked in forum about time and risk poses the following question "Is delaying a risk considered a separate treatment method or is it just a sub-type of changing the likelihood?"</font></span></p><div><p><span style="font-family:arial, helvetica, sans-serif;" class="font-size-2"><font face="Verdana, sans-serif">This is a very interesting statement and leads us to look at risk through time here in this blog.</font></span></p><p><span style="font-family:arial, helvetica, sans-serif;" class="font-size-2"><font face="Verdana, sans-serif">Continue reading by <span style="color:#ff0000;"><a href="http://causalcapital.blogspot.sg/2012/06/time-in-risk.html" target="_blank"><span style="color:#ff0000;">following this link</span></a></span></font></span></p></div></div>Interview with Kent Westerbeck, President at Westerbeck Risk Managementhttps://globalriskcommunity.com/profiles/blogs/interview-with-kent-westerbeck-president-at-westerbeck-risk2012-05-03T14:45:09.000Z2012-05-03T14:45:09.000ZMichele Westergaardhttps://globalriskcommunity.com/members/MicheleWestergaard<div><p>Managing a profitable balance sheet is more challenging than ever. With Basel III and the more immediate Dodd-Frank regulation on the horizon, a tool such as FTP is vital to ensure an effective centrally managed liquidity strategy. Post-crisis, whilst the economic situation is improving, allocating sufficient liquidity costs quickly and efficiently to the correct business-line is paramount.</p><p>Kent Westerbeck formed the Westerbeck Risk Management consulting company in 2007 after retiring from LaSalle Bank, a subsidiary of ABN AMRO NV. Mr. Westerbeck managed the interest rate risk of LaSalle’s balance sheet and their mortgage servicing rights portfolio and he advised on LaSalle’s transfer pricing process.</p><p><b>Why has FTP become a focus in recent times?</b></p><p><b>KW:</b> FTP has always been a key to properly pricing products, and evaluating the profitability of customer relationships and business lines within the financial institution.</p><p>The importance of these processes has increased as financial institutions face lower profitability levels and the need to respond to current low interest rates and mounting regulatory challenges.</p><p>What are the key challenges surrounding FTP and Balance Sheet Management in the current financial environment?</p><p><b>KW:</b> As rates have fallen new product pricing challenges have arisen.</p><ol><li>Rates on non-maturity deposits are near zero but even so, the rates that one can earn when investing these balances have fallen further and the margins on these products have declined. These products frequently have gone from very profitable to unprofitable. This fundamental shift in the profitability of non-maturity deposit products cannot be appreciated unless one properly transfer prices them.</li><li>The current lower rates have generated a lot of customer interest in fixed rate borrowing. Since most financial institutions are in need of fixed rate assets to offset the risk of their non-maturity deposits, this seems like an ideal situation.</li></ol><p>Good transfer pricing is needed in order to properly price these new fixed rate term loans.</p><p>When good transfer prices are used, one frequently finds that the rates needed on new fixed rate term loans to produce the same profitability as the floating rate term loans they are replacing are very hard to sell to the customers.</p><p>So, the bank is faced with the decision to:</p><ol><li>Convince the customer to accept the break-even pricing on the new fixed rate term loans (while competitors without the same pricing discipline may be providing more attractive pricing)</li><li>Accept lower profitability on new fixed rate term loans than they were used to getting from the customer.</li><li>Seek fixed rate term assets needed to manage overall balance sheet risk elsewhere, e.g., in the investment portfolio or through use of derivatives (which present their own issues --- accounting challenges and fear of derivatives)A) B) </li><li>Attaching floors to floating rate loans has helped deal with the issue of falling rates. However, transfer pricing of any instrument that includes an option, like a loan that includes a floor, is particularly problematic.</li></ol><p><b>What areas of FTP and Balance Sheet Management can banks really improve on and how will this help them?</b></p><p><b>KW:</b> Creating a transfer pricing system where the transfer pricing and interest rate risk assessment are in synch is critical.</p><p>When a product’s transfer pricing does not match its interest rate risk assessment, problems will occur. The interest rate risk of the item will direct the interest rate risk manager how to invest (or fund) the product. This will generate profitability that is reflective of the interest rate risk assessment. When the transfer pricing process implies a different risk and a different level of profitability, the institution will miss-assess the true profitability of the product and make poor pricing and product management decisions.</p><p><b>How do you see FTP and balance sheet management developing in the future?</b></p><p><b>KW:</b> It is very important that the transfer pricing system be a joint venture between the Treasury and the lines of business. Transfer pricing must be established in an open environment where the financial logic of the process can be understood.</p><p>Without this open discussion the business lines are likely to feel that the transfer pricing decisions are arbitrary and designed to enrich the Treasury and penalize the lines of business.</p><p>Hence the people and committee managing the transfer pricing process must be perceived as intellectually honest and financially sophisticated.</p><p>Developing these skills requires training and discussion of the subject with peers.</p><p><b>What do you believe attendees can gain most from attending our event?</b></p><p><b>KW:</b> Attendees can learn:</p><ol><li>The appropriate thought process for establishing transfer prices</li><li>The importance of tying together transfer pricing and interest rate risk measurement and</li><li>The key role transfer pricing plays in:<ol><li>Pricing products</li><li>Assessing the profitability of customers and lines of business</li></ol></li></ol><p>Kent Westerbeck will be a speaker at the marcus evans before the forthcoming <a href="http://www.marcusevansch.com/FTP_InterviewKW" target="_blank">Funds Transfer Pricing and Balance Sheet Management Conference</a>, June 11-13, 2012 in New York City, NY.</p><p>For more information please contact Michele Westergaard, Senior Marketing Manager, Media & PR, marcus evans at 312-540-3000 ext. 6625 or <a href="mailto:Michelew@marcusevansch.com">Michelew@marcusevansch.com</a>.</p><p><b>About marcus evans</b></p><p><i>marcus evans</i> <i>conferences annually produce over 2,000 high quality events designed to provide key strategic business information, best practice and networking opportunities for senior industry decision-makers. Our global reach is utilized to attract over 30,000 speakers annually, ensuring niche focused subject matter presented directly by practitioners and a diversity of information to assist our clients in adopting best practice in all business disciplines.</i></p></div>