Reliance annual report up and coming ways to make money 2017-18

MEG markets remained strong with a sharp rise of 23% y-o-y in prices and 26% y-o-y in margins. Firm ethylene prices supported positive trends in MEG markets, with prices touching the highest levels in 4 years. During CY 2017, net global capacity addition of 1 MMT was lower than up and coming ways to make money demand growth of 1.4 MMT. During the year, reliance commissioned its new MEG capacity in jamnagar. The new capacity is running at optimum throughput and the up and coming ways to make money additional volume has been absorbed in domestic and export markets.

PX market witnessed oversupply in the initial part of the up and coming ways to make money year with slower than anticipated offtake from downstream PTA market. This was due to delay in start-ups and restarts of idle PTA plants. Consequently, gains in upstream energy markets overshadowed rise in PX prices, affecting the deltas during the year. CY 2017 PX capacity increased by 3MMT and witnessed demand up and coming ways to make money growth of 1.9 MMT. However, PTA start-ups pushed up demand for PX towards the end of up and coming ways to make money the year, supporting higher operating rates. Elastomers

Global natural rubber production witnessed growth of 7% y-o-y to 13.4 MMT in 2017, while demand growth was 4% y-o-y to 13.1 MMT. The excess supply of natural rubber weighed on price fundamentals up and coming ways to make money during the year. Environmental restriction in china led to reduction in downstream operation up and coming ways to make money of elastomers industry, which resulted in shortage of carbon black and limited

Global capacity of butadiene continues to remain stable at 15 up and coming ways to make money MMTA with average operating rate of around 77% in CY 2017. The key application for butadiene is in the manufacturing of up and coming ways to make money PBR and SBR. With more light feed crackers coming up -mainly in the US, the incremental availability of butadiene is expected to be limited. The global capacity of PBR is 4.8 MMTA in 2017 with average utilisation rate of 70%. The global capacity of SBR is 7.1 MMTA in 2017 with average utilisation rate of 67%.

Indian polymer sector was impacted during the first half of up and coming ways to make money FY 2017-18 due to GST implementation. Demand revived post stabilisation of the GST regime. For the full year, india’s polymer market registered a healthy 7% growth y-o-y. Demand growth was driven by higher economic activity, rising disposable income levels, increased spending on infrastructure and uptrend in the packaging and up and coming ways to make money automobiles sector. India is among the world’s fastest growing polymer markets with a five-year CAGR (2012-17) of 9.1%. India is the second largest demand hub for polymer in up and coming ways to make money asia after china, accounting for 11% of the asian consumption.

PP recorded 10% y-o-y demand growth supported by healthy consumption across all segments, including raffia packaging, non-woven, multifilament, automotive, hygiene applications and appliances. PE demand was higher by 9% y-o-y owing to strong offtake from flexible packaging, moulded products (e.G. Portable toilets – driven by “swachh bharat abhiyan”) and paper/woven sacks lamination packaging sector. PVC demand recovered towards the end of the year and up and coming ways to make money posted a growth of 2% in FY 2017-18. Financial and operational performance

RIL successfully commissioned the ROGC project along with downstream facilities. RIL’s total ethylene capacity now stands at 3.6 MMTPA. Post ROGC start-up RIL became the 14 th largest global PE producer up and coming ways to make money with capacity of 2.2 MMTA. Also, RIL became the 7th and 11th largest producer, globally, for LLDPE and LDPE, respectively. The additional capacity has been well absorbed by the growing up and coming ways to make money demand in the indian market. RIL has a domestic market share of 21% in the overall PE market. RIL is the only producer of LDPE in india, and witnessed a surge in market share from 35% to 53% post commissioning of ROGC.

Polyester markets remain subdued due to introduction of GST regime up and coming ways to make money in the first half of the year, resulting in weaker demand and low operating rates. Demand revived post stabilisation of the GST regime, but there was a sharp increase in imports due to up and coming ways to make money higher GST rates on domestic production. Higher tax rates across the polyester chain also resulted in up and coming ways to make money the shutdowns of textile units. Domestic markets were also impacted by the increase in imports up and coming ways to make money of fabrics after the implementation of GST as almost all up and coming ways to make money categories of imports increased compared to pre-GST levels. Import duties on certain categories of fabrics and end products up and coming ways to make money were increased subsequently, but imports continue to stay at a high level.

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