Report Coverage
This report focuses on the manufacture of basic chemicals, speciality chemicals and industrial gases, including additional coverage of the manufacture of dry ice. It includes comprehensive information on the state and size of the sector, trade and other statistics, and recent developments. There are profiles of 25 companies including major players such as Sasol, Omnia and Foskor. This report includes profiles of dry ice companies such as Sidewinder Dry Ice and Gas, Dry Ice International and Dry Ice Solutions.
Introduction
This report focuses on the manufacture of basic chemicals, speciality chemicals and industrial gases. According to the Chemical and Allied Industries Association (Caia) and InvestSA, the local chemical manufacturing market is valued at about R361.4bn in sales. It contributes 3.4% to GDP and is the third-largest manufacturing sector (contributing 22.8% to manufacturing), with exports in 2019 of R48.4bn in inorganic chemicals, organic chemicals and miscellaneous chemical products. Production and revenue declined in the initial months after the March 2020 imposition of a lockdown to tackle the coronavirus pandemic but recovered quickly subsequently. Karoo shale gas reserves as well as two recent gas discoveries look set to transform South Africa’s reliance on depleting local gas reserves and gas imports and could potentially provide abundant and low cost inputs into the chemical industry. In addition, a number of efforts are underway to develop a green hydrogen sector, which could help gas producers to lower their carbon levels, while creating a new export sector.
Strengths
• Consistent interventions via industrial policy initiatives to support the chemicals industry.
• Diversification of chemical companies outside the traditional hub at Sasolburg.
• Potential to exploit new gas in the Karoo and offshore in Brulpadda and Luiperd.
Weaknesses
• Companies battle to attract significant amounts of capital because of South Africa’s uncertain political economic environment.
• Imports of feedstock and other chemicals have increased.
• Increasing shortage of skills.
• Locally-processed goods are less competitive in global export markets.
• Low levels of product beneficiation, particularly in the specialty chemical sector.
• Relatively low levels of research and development compared to the global chemical industry.
• Shortage of gas to meet local demand.
Opportunities
• Government’s commitment to a strategy for the sector.
• Green chemistry and hydrogen economy offer significant opportunities for companies in South Africa.
• Increased demand for dry ice as an industrial cleaning agent.
• Opportunities in new gas finds could provide a locally-available source of fuel and feedstock for chemicals.
• The demand for carbon dioxide to manufacture dry ice could increase, with the expected delivery in South Africa in 2021 of vaccines to combat the pandemic.
Threats
• Increasing volumes of cheap imports, which threaten the local manufacture of basic chemicals.
• Locally-produced natural gas which is expected to run out at the end of 2020, leaving the country dependent on imported gas.
• Low price of imports.
• Shortage of skilled manpower.
• South Africa risks losing a fifth of its refining capacity as refineries are temporarily shut.
• The coronavirus pandemic which has suppressed fuels and chemicals demand.
Outlook
The chemical sector recovered quickly following the initial months of the lockdown introduced in March 2020 to tackle the coronavirus pandemic. Sasol in July 2020 said it expected an increase in commodity chemicals supply as new Chinese capacity comes online. This, combined with weak near-term demand, could keep chemical prices low in the short term. Oil price volatility and the pandemic could add further pressure on prices and volumes, the company warned. It said additional cracker capacity will be brought online in 2021, increasing ethane demand. Lower competition from alternate feedstocks and higher gas prices also place upward pressure on ethane prices. In July 2020 it forecast polyethylene prices in the year to June 2021 to range between US$750 to US$850 a ton, compared to an average of US$760 between January and June 2020. For ethane it expects prices to average US20c to US30c a gallon in the year to June 2021 compared to an average of US17c between January and June 2020. While new gas finds in South Africa are set to propel the use of gas as both an energy source and feedstock, these are not expected to come online until 2028. The Industrial Gas Users Association - Southern Africa estimates that demand for industrial gases will grow by 2% a year over the long term, with the expected demand growth set to make gas the biggest fossil fuel in use by 2040. The association says liquefied natural gas will play a critical role in meeting demand with expected annual growth rates of 4% to 5%.
The Manufacture of Basic Chemicals, Other Chemicals and Industrial Gases Industry in South Africa
2021
Full Report
R 1 900.00(ZAR) estimated $101.31 (USD)*
Industry Landscape
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Historical Reports
The Manufacture of Basic Chemicals, Other Chemicals and Industrial Gases Industry in South Africa 2019-07-05
R 1 900.00(ZAR) estimated $101.31 (USD)*
View Report Add to CartThe Manufacture of Basic Chemicals, Other Chemicals and Industrial Gases Industry in South Africa 2017-10-02
R 1 900.00(ZAR) estimated $101.31 (USD)*
View Report Add to CartThe Manufacture of Basic Chemicals, Other Chemicals and Industrial Gases Industry in South Africa 2015-03-24
R 1 900.00(ZAR) estimated $101.31 (USD)*
View Report Add to CartTable of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 3 |
| 2.2. | Geographic Position | 6 |
| 3. | SIZE OF THE INDUSTRY | 7 |
| 4. | STATE OF THE INDUSTRY | 7 |
| 4.1. | Local | 7 |
| 4.1.1. | Trade | 19 |
| 4.1.2. | Corporate Actions | 21 |
| 4.1.3. | Regulations | 24 |
| 4.1.4. | Enterprise Development and Social Economic Development | 26 |
| 4.2. | Continental | 27 |
| 4.3. | International | 29 |
| 5. | INFLUENCING FACTORS | 31 |
| 5.1. | Coronavirus | 31 |
| 5.2. | Economic Environment | 34 |
| 5.3. | Government Support | 35 |
| 5.4. | jTechnology, Research and Development (R&D) and Innovation | 36 |
| 5.5. | Labour | 37 |
| 5.6. | Environmental Concerns | 40 |
| 6. | COMPETITION | 42 |
| 6.1. | Barriers to Entry | 43 |
| 7. | SWOT ANALYSIS | 44 |
| 8. | OUTLOOK | 45 |
| 9. | INDUSTRY ASSOCIATIONS | 46 |
| 10. | REFERENCES | 46 |
| 10.1. | Publications | 46 |
| 10.2. | Websites | 47 |
| APPENDIX 1 | 49 | |
| Summary of Notable players | 49 | |
| COMPANY PROFILES | 55 | |
| AECI LTD | 55 | |
| AFRICAN OXYGEN LTD | 61 | |
| AIR LIQUIDE (PTY) LTD | 67 | |
| AIR PRODUCTS SOUTH AFRICA (PTY) LTD | 70 | |
| BASF SOUTH AFRICA (PTY) LTD | 73 | |
| BROTHER CISA (PTY) LTD | 75 | |
| BUCKMAN LABORATORIES (PTY) LTD | 77 | |
| CLARIANT SOUTHERN AFRICA (PTY) LTD | 79 | |
| DOW SOUTHERN AFRICA (PTY) LTD | 81 | |
| DRY ICE INTERNATIONAL CC | 83 | |
| DRY ICE SOLUTIONS SOUTH AFRICA (PTY) LTD | 85 | |
| ENGEN PETROLEUM LTD | 87 | |
| EVONIK PEROXIDE AFRICA (PTY) LTD | 91 | |
| FOSKOR (PTY) LTD | 93 | |
| GOLD REEF SPECIALITY CHEMICALS (PTY) LTD | 97 | |
| NCP CHLORCHEM (PTY) LTD | 99 | |
| OMNIA HOLDINGS LTD | 101 | |
| ORION ENGINEERED CARBONS (PTY) LTD | 105 | |
| ORTHOCHEM (PTY) LTD | 107 | |
| PELCHEM (PTY) LTD | 109 | |
| RICHBAY CHEMICALS (PTY) LTD | 111 | |
| ROLFES HOLDINGS (PTY) LTD | 113 | |
| SASOL SOUTH AFRICA LTD | 116 | |
| SHELL DOWNSTREAM SOUTH AFRICA (PTY) LTD | 120 | |
| SIDEWINDER DRY ICE AND GAS (PTY) LTD | 122 |
