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March 1, 2001 | Feedback |
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Sector Focus: Basic Petrochemicals And PolymersBasic petrochemicals and Polymers: State of the industry (2000-01)
Petrochemicals: Tariffs, prices and landed costs
ABS: Acrylonitrile butadiene styrene; EDC: Ethylene dichloride; hdPE: High density polyethylene; IM: Injection moulding; ldPE: Low density polyethylene; lldPE: Linear low density polyethylene; PBR: Polybutadiene rubber; PPHP: Polypropylene homopolymer; PS (GP): Polystyrene (general purpose); SBR: Styrene butadiene rubber; VCM: Vinyl chloride monomer. n.a.: Not available 1 Market prices; 2 Fob prices Note Anti-dumping duties on PS and SBR have not been included in the landed cost, as they vary by country. Source: CRIS INFACŪ
Basic petrochemicals and Polymers: Budget impact Impact factors
Note Figures in brackets indicate the closing share prices, on February 27, 2001 and February 28, 2001, respectively. Pos= positive Neg= negative Neut= neutral Source: CRIS INFACŪ A: The reduction in the effective customs duty on basic petrochemicals and polymers is expected to have a negative impact, especially on the integrated petrochemical producers. Domestic polymer (and basic petrochemical) prices are expected to decline in line with a decline in the landed costs. However, impact on non-integrated players, such as Finolex Industries, Supreme Petrochemicals Limited and DCW Limited will be marginal due to a reduction in feedstock costs. B: The reduction of surcharge on corporate tax, from 13 per cent to 2 per cent and the expected decline in interest rates, is expected to have a positive impact on producers. C: The reduction in the effective customs duty on soda ash, from 44.04 per cent to 24.8 per cent, and caustic soda, from 44.04 per cent to 40.4 per cent is expected to have a negative impact on the margins of DCW Limited. D: The reduction in the effective customs duty on MEG, from 32.6 per cent to 24.8 per cent is likely to have a negative impact on the margins of IPCL and NOCIL. E: The reduction in the effective customs duty on fibre intermediates, MEG and PTA, from 32.6 per cent to 24.8 per cent, and PX, from 9.7 per cent to 9.2 per cent, is expected to have a negative impact on the margins of Reliance Industries Limited.
Rediff-CRISIL Budget Impact Analysis
Disclaimer: CRISIL has taken due care and caution in compiling this report. Information has been obtained by CRISIL from sources which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CRISIL is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of its web site. |