(MENAFNEditorial)
British rubber and plastic production saw a growth surge in 2014 and with the domestic market likely to be buoyant in 2015 it is likely to hold up in the months ahead. However BMI warns that the eurozone's woes are not yet over and combined with ongoing austerity measures will pose a significant risk to the petrochemicals outlook.
BMI estimates that chemicals output grew 3.8% y-o-y in 2014 while rubber and plastic production rose 11.9% as rapid growth in production was underway. The rebound came after petrochemicals underperformed compared to the rest of the industrial sector. Key end-use markets such as the construction and automotive sectors experienced strong growth in line with the overall economic recovery.
The positive performance was achieved in spite of some capacity cutbacks including the closure of a 320000tpa cracker and associated butadiene unit in Grangemouth and a 168000tpa polyethylene terephthalate (PET) plant operated by Indorama. Ineos is also closing a 105000tpa PVC unit and Lotte Chemical UK is shuttering its 500000tpa purified terephthalic acid (PTA).
Full Report Details at
- http://www.fastmr.com/prod/938382_united_kingdom_petrochemicals_report_q1_2015.aspx?afid=101
* The industry is moving towards cheaper ethane feedstock imported from the US. Grangemouth's 700000tpa cracker has led the way with Sabic following. A shift to lower cost ethane feedstock from the expensive naphtha feed that has typically been used could help the UK regain some competitive advantage. However US ethane does not present a longer-term solution to the UK's waning competitiveness in the petrochemicals industry due to overcapacity of US (and global) ethane crackers and a convergence of oil and gas prices.
* The construction industry is set to see growth slow from 4.3% in 2014 to 3.5% in 2015 driven by the residential sector. This should boost consumption of polymers used in construction such as piping and PVC windows and doors.
* Total automotive production growth is set to moderate from 5.4% in 2014 to 2.3% in 2015. This will have a corresponding effect on consumption...
The United Kingdom 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 United Kingdom Petrochemicals Report provides industry professionals and strategists sector analysts trade associations and regulatory bodies with independent forecasts and competitive intelligence on the British 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 British petrochemicals market.
* Target business opportunities and risks in the British petrochemicals sector through our reviews of latest industry trends regulatory changes and major deals projects and investments in United Kingdom.
* 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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