Basic chemicals are considered building blocks of the entire petrochemical industry. Basic chemicals are processed further to yield fibers, surfactants, polymers, and a number of chemicals from which various by-products are formed.
InIndia, the market value of chemicals which are basic is US$ 20 billion. During 2004-2005, the production of basic chemicals was 7.38 million tons while in the previous year it was 7.07 million tons. This means that there has been a growth of 4.37% in the production of chemicals of basic variety.
Among basic chemicals, ethylene is used as a feedstock in the production of polyethylene. It is also used in the production of MEG, LPDE, LLDPE, and HDPE.
The consumption of ethylene inIndia is around 18% for Polyvinalchloride (PVC) and 60% for Polyethylene (PE). The price of ethylene in the international market is US$ 420- 430 per ton. Butadiene, a part of basic chemicals is mainly used in the production of synthetic rubber such as PBR, SBR, and ABS. It costs around US$ 365- 375 per ton in the international market.
As a part of the basic chemicals, benzene is used in the manufacturing of nitrogen, styrene, pesticides, LAB, caprolactin. Benzene is an aromatic basic chemical and costs US$ 305-315 per ton in the international market. Propylene is one of the various basic chemicals used in the manufacture of polypropylene and costs around US$ 270-280 per ton in the international market. One of the basic chemicals is toluene which is used in the pesticides and pharmaceutical industries as a solvent. It costs US$ 255-265 per ton in the international market.
The major companies dealing in basic chemicals inIndia are:
- RIL industries Ltd.
- Indian petrochemical Ltd.
- Haldia petrochemical
- Gas authority ofIndia Ltd.
Basic chemicals are important components of theIndian petrochemical industry. And so the industry, along with theIndian government must see to it that the proper supply of basic chemicals is maintained.
Last Updated on 13 December 2011