Asia’s crude oil refining capacity set to jump
The rise in capacity will tighten Asia’s crude market as it coincides with planned output cuts by major oil producers
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Asia will post its biggest net refining capacity addition in three years in 2017, according to a Reuters news report. New and expanded refineries from China to India will offset closures in Japan.
That will add a net 450,000 barrels per day (bpd) of crude processing capacity in 2017, the highest since 2014, Reuters said, citing energy consultant Wood Mackenzie.
The increase amounts to about an additional 1.5% of refining capacity on top of Asia’s total installed capacity of nearly 29 million bpd, based on Thomson Reuters Eikon data.
The upshot: the rise in capacity will tighten Asia’s crude market as it coincides with planned output cuts by major oil producers.
demonetisation impact to affect farm income
Though kharif produce has been better on a year-on-year (y-o-y) basis in states such as Gujarat, Haryana, Andhra Pradesh, Uttar Pradesh and a few others, liquidity challenges after 8 November have impacted realizations adversely, particularly for small farmers, according to a JM Financial Institutional Securities Ltd report.
The brokerage house has revisited its estimates for farm income and reduced estimated total income growth of 6%/13% y-o-y for a small/large farmer in FY17, from 12%/17% earlier.
Due to liquidity-related challenges and issues with co-operative banks after demonetisation, dependence on money lenders has risen for the small farmer in the interim, thus worsening their credit profile, it added.
Lower rural disposable income is bad news for sectors that count rural India as a key consuming market.
Indigenization remains a pipe dream in solar power
India may be surpassing major countries in solar power capacity additions.
But the record additions are doing little to advance the government’s ‘Make in India’ campaign. Chinese suppliers consolidated their hold with over 80% of all solar modules installed in 2016 coming from China, according to Bridge to India, a consultancy and market intelligence provider on the renewable market.
A solar module is a key component of the solar photovoltaic system. India tried to favour local firms by stipulating domestic content levels.
But the World Trade Organization declared India’s domestic content requirement policy illegal, and local manufacturing did not take off.
Bridge to India expects India to remain one of the fastest growing markets for solar capacity additions but remains pessimistic about domestic manufacturing.