Page 184 - CW E-Magazine (15-7-2025)

PREVIEW – K 2025 Special Report

GEARED FOR GROWTH
Risks emanating from evolving geopolitics might
MOL Group banks on integrated operations to grow
offset opportunities for Indian chemical industry
chemicals business in Europe
ndia Ratings and Research (Ind-Ra)  Chinese demand recovery, which is with a large domestic sales mix are
Hungary-based oil & gas and petroleum processing to polyol produc- opines that the domestic chemical critical to chemical price recovery, better placed.
chemicals company, MOL Group, is tion. Utilising technology from Germany’s Isector is vulnerable to the constantly is expected to be more gradual in
aiming to shift from fuel-based opera- Thyssenkrupp Uhde and Evonik, the evolving global landscape, driven by nature. The US tariff impositions  While pricing pressure could affect
tions towards higher-value petrochemi- plant is set to reach commercial-scale the changing supply-demand dynamics and the weaker Chinese demand margin recovery, the sectoral
cal production and consumer services, production with the fi rst grades by the led by the ongoing tariff war and chemi- are expected to keep prices in the balance sheet remains comfort-
as it prepares for energy transition and end of 2025, helping to serve the poly- cal prices being infl uenced by the US export market under pressure in the able with the next large round of
the post-fossil fuel world. Even as the urethane industry. demand as well as the pace of China’s interim. growth capex expected over 2027-
chemical industry in Europe struggles economic recovery. Furthermore, chan- 2028.
with capacity utilisation issues amidst “This represents a forward integration nel inventory restocking would be  Interest rates in 2025 are lower
slowing demand, MOL is seeking to into the propylene value chain, leveraging affected by interest rate movements both y-o-y and when compared to US market share of Indian chemical
continuously modernise existing as- ments and a capacity increase of 400-kt MOL’s existing infrastructure and refi ning and logistic costs as geopolitical events the peak levels seen in 2023. How- players could improve
sets and allocating $1-bn in waste in- that will secure the long-term future capabilities to produce polyether polyols – affect freight rates and global supply ever, they remain elevated from the The imposition of US tariffs
tegration, recycling and medium-scale of the chemicals business,” said Péter key components in polyurethane manu- chains. pre-COVID19 levels due to which announced is likely to help domestic
chemical investments. MOL’s chemi- Császár, Senior Vice President, MOL facturing – and propylene glycol, which distributors are likely to keep low players, who are already supplying to
cal business has three sub-units – base Group Chemicals. serves other industrial applications,” said The following key trends are channel inventory levels with a large customers within the US, to increase
chemicals, polyolefi ns and polyols – Ms Szabó. The Group is raising propylene expected to be seen within the domestic gradual shift to just-in-time inven- their market share in chemicals not
operating three manufacturing units with Giving details about the Group’s capacity in Tiszaújváros by 100,000-tpa, chemical sector over 2025-2026, tory. covered in the exemption list, especially
a total capacity of over 2-mtpa. downstream transformation strategy, which is expected to be completed by according to Siddharth Rego, Associate agrochemicals, organic chemicals
Ms. Krisztina Petrényiné Szabó, Busi- 2026 and serve as feedstock for polypro- Director, Corporate Ratings, Ind-Ra:  Over the past few years, container (pharma & agro intermediates, build-
“MOL Group believes in the future ness Unit Director, MOL Group Poly- pylene and support the feedstock needs of freight costs have shot up upon ing blocks for adhesives, food addi-
of chemical industry in Europe, and we mers, said that its €1.3-bn polyol com- the adjacent polyol complex. The Group  The US tariffs provide opportunities events such as the Russia-Ukraine tives etc.). While domestic players
remain committed to strengthening our plex in Tiszaújváros (Hungary), with is also doubling its maleic anhydride to India to increase its market share war and the Red Sea crisis. While would face competition from other
presence in the region. This long-term a capacity of around 200,000-tpa of capacity, which would help it to cater to in the US chemical industry. How- freight costs have remained range- large exporters to the US namely Ire-
commitment enhances circularity, se- polyol, was inaugurated last year, mak- almost 15% of the demand in EU. ever, these could be counterbalanced bound over the past 12 months, land, Germany, and France, India has
cures domestic feedstock, and aligns ing the Group the only entity in Hun- by the likely increased competitive- they stay susceptible to geopolitical better cost structures than them, which
with EU Green Deal ambitions. We gary and in Central & Eastern Europe MOL Group will be exhibiting in ness in other export markets and in- events. would counter any tariff differential.
have lined up $2-bn of life cycle invest- to cover the entire value chain, from Hall 5, booth C20. creased import risks, given around Also, the possibility of US infl ation
50% of US’s chemical imports are  Domestic demand is higher than upon tariff imposition could result in
Polyvantis to spotlight sheets and fi lms offerings not exempt from the tariffs. export demand. Accordingly, players a demand slowdown, particularly in

Polyvantis, yet another materials Sandeep Dhawan, CEO of the com-
specialist making its debut appearance pany informed that Polyvantis’ theme
at K, will be presenting well-known for the K show is ‘Built on Experience.
brands in the industry – such as Plexi- Driven by Innovation’. “At the K we
glas and Acrylite for polymethylmeth- will showcase our material expertise,
acrylate semi-fi nished products and commitment to sustainability, smart solu-
Lexan for polycarbonate sheets and tions, and real-world impact,” he said.
fi lms.
Polvantis offi cials said the company
Formed last year by the combina- will launch two new products at the K
tion of SABIC’s Functional Forms and show – one for aerospace and the other
Röhm’s Acrylic products, Polyvantis a fi lm for microfl uidics applications in
offers its sheets and fi lms products for care & security, and lighting & signage. the healthcare industry. Details of the
applications across sectors like build- The company operates 15 production new products were not shared. Poly-
ing & construction, electrical & elec- sites across the Americas, Europe, Asia, vantis will be exhibiting in Hall 8B, Fig. 1: US chemical imports from China and India
tronics, automotive, air & rail, health- and Africa. booth D27. Source: United States International Trade Commission (USITC), Ind-Ra analysis

184 Chemical Weekly July 15, 2025 Chemical Weekly July 15, 2025 185

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