Aug 01: Beware of the ides of June, with apologies to the Roman saying.
8The disappearance of growth in POL consumption in the industrial sector in June is a sure of sign of distress that industry watchers must take cognizance of.
The following data proves the point:
8Naphtha consumption declined 4.3% in June in relation to the same month last year. there has been a degrowth of 3.4% during April-June as well
8FO and LSHS consumption was down 12.9% in June and 7.7 % in April-June
8Petcoke, a low cost favorite among furnace owners in India, declined a massive 18.6% in June and 1.1% in April-June
8LDO consumption recorded a de-growth of 5.6% and 1.1%
8Was this slack in liquid fuel or feedstock production picked up by higher gas consumption? Not really
8Gas consumption grew only 0.75% in June and 0.63% in April-June
8The data supports the fact that core sector industrial growth slowed down to a 19-month low of 0.4%, much lower than 7% recorded in June, 2016
8Is it just the adverse impact of demonetization or is it a deeper more insidious peril looming around the corner?
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