(MENAFNEditorial)
BMI's latest Russia Petrochemicals Report has a bearish outlook for the industry in 2015 due to the effects of sanctions on the domestic economy which will hamper growth in petrochemicals consumption. Given the recent growth in capacities and the move towards import-substitution this could have a major impact on Russian petrochemicals output and profitability.
With sanctions applied in July 2014 as well as base effects strong growth in the first half of the year diminished in the second although output was supported by capacity expansion in some segments. BMI estimates petrochemicals growth of 2% in 2014 with the likelihood of stagnation in 2015 as economic recession bites.
Sanctions are rapidly eroding Russia's business climate and domestic demand. Petrochemicals producers are now facing the prospect of zero or even negative growth rates over coming months and possible delay or cancellation of major expansion projects in the medium-term. The economic fall-out from sanctions is bound to affect Russian petrochemicals consumption with imports likely to feel the brunt in the short-term.
Full Report Details at
- http://www.fastmr.com/prod/924280_russia_petrochemicals_report_q1_2015.aspx?afid=101
Key petrochemicals-consuming industrial sectors including consumer goods cars and construction will face a significant decline in output. The impact on the petrochemicals market will fall mostly on imports although domestic margins will also be hit.
* Russian state banks are now excluded from raising long-term loans in the EU and the EU will not export a wide range of oil industry technology though gas remains unaffected. BMI believes this will make it difficult for petrochemicals producers to secure access to international finance and could impact on project schedules.
* Structural inefficiencies have largely deterred investment in export-orientated production in Russia; manufacturing in the country is not competitive without the presence of government incentives and these are largely applicable only to vehicles sold in the domestic market. BMI expects these hurdles to...
The Russia Petrochemicals Report has been researched at source and features Business Monitor International (BMI)'s market assessment and independent forecasts for key petrochemicals sub-sectors. The report also analyses the impact of regulatory changes recent developments and the background macroeconomic outlook and features competitive landscapes comparing companies by products and services sales market share investments projects partners and expansion strategies.
BMI's Russia Petrochemicals Report provides industry professionals and strategists sector analysts trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Russian petrochemicals industry.
Key Benefits
* Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Russian petrochemicals market.
* Target business opportunities and risks in the Russian petrochemicals sector through our reviews of latest industry trends regulatory changes and major deals projects and investments in Russia.
* Assess the activities strategy and market position of your competitors partners and clients via our Company Profiles (inc. KPIs and latest activity).
Coverage
BMI Industry View
Summary of BMI's key industry forecasts views and trend analysis covering petrochemicals markets regulatory changes major investments projects and company developments.
Market Overview
Structure size and value of the industry sector; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments.
Business Environment Rankings
BMI's Petrochemicals Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (both corporate and financial) in the regional petrochemicals market.
The rankings methodology makes sophisticated use of over 40 industry economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings products.
Industry Trends & Developments
Evaluation of company and sector-wide developments including key projects (as well as expansion plans) latest company financial details and proposed international ventures.
BMI Industry Forecasts
Historic data series (2009-2012) and forecasts to end-2018 for all key industry and economic indicators supported by explicit assumptions plus analysis of key risks to the main forecasts. Indicators include:
Energy: Oil production (`000 b/d) oil consumption (`000 b/d) net oil exports (`000 b/d) gas production (bcm) gas consumption (bcm) net gas exports (bcm) oil refinery capacity (`000 b/d).
Petrochemicals: Ethylene capacity (`000 tpa) ethylene production (`000 tpa) ethylene consumption (`000 tpa) polyethylene capacity (`000 tpa) polypropylene capacity (`000 tpa) polyvinyl chloride capacity (`000 tpa) polyolefins consumption (`000 tpa).
Oil Products Prices: Price forecasts for all major oil-based products (US$/bbl) at major global energy trading hubs.
Economic: Nominal GDP (US$bn) real GDP growth (%) GDP per capita (US$) population (mn) unemployment (%) exchange rate (against US$).
Company Profiles
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles enabling a full evaluation of recent company performance and future growth prospects.
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