(MENAFNEditorial)
A slowdown in Chinese demand will raise market self-sufficiency and reduce imports according to BMI's latest China Petrochemicals Report. T he Chinese petrochemicals market is faced with a rapidly cooling national property market which has far-reaching consequences not only for plastics used in construction but to the wider economy. In line with the manufacturing slowdown the automotive sector which is among the main petrochemicals consuming industries is set for lower growth.
China should meet its target of 64% self-sufficiency in ethylene and derivatives in 2015. A key element of this drive is coal-to-olefins technology which has helped the country leverage its low-cost coal resources to boost feedstock security and competitiveness. As a result most of its PVC output is now coal-based. Meanwhile polypropylene and polyethylene import growth is declining and either at or approaching zero.
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BMI estimates ethylene capacity utilisation was 70% in 2014. China's petrochemical industry turnover hit CNY14.5trn (USD2.36trn) in 2014 according to data released by the China Petroleum and Chemical Industry Federation (CPCIF). A slowdown in the Chinese economy and the country's increased self-supply of petrochemicals is likely to continue to reduce exports impacting on the performance of regional suppliers.
* Paraxylene (PX) will remain a segment where supply has failed to keep up with demand. Rapid growth in Chinese polyester production has created an increasing market demand for PX but PX production capacity cannot meet the demand due to the slowdown of PX development in China.
* The key petrochemicals markets - the automotive and construction sectors - are set for slower growth of 5.6% and 6.3% in 2015 which is far below the rates seen in recent years. This will affect consumption of a broad range of petrochemicals products.
* In a maturing market growth in petrochemicals demand will focus more on increasing need for high-end speciality chemicals...
The China Petrochemicals Report has been researched at source and features BMI Research'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 China Petrochemicals Report provides industry professionals and strategists sector analysts trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Chinese 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 Chinese petrochemicals market.
* Target business opportunities and risks in the Chinese petrochemicals sector through our reviews of latest industry trends regulatory changes and major deals projects and investments in China.
* 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 the petrochemicals markets regulatory changes major investments projects and company developments.
Industry SWOT Analysis
Analysis of the major Strengths Weaknesses Opportunities and Threats within the petrochemicals sector and within the broader political economic and business environment.
BMI Industry Forecasts
Historic data series (2009-2013) and forecasts to end-2019 for 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 (USD/bbl) at major global energy trading hubs.
* Economic: Nominal GDP (USDbn) real GDP growth (%) GDP per capita (USD) population (mn) unemployment (%) exchange rate (against USD).
BMI’s Petrochemicals Risk Reward Index
BMI’s Risk Reward Indices provide investors (both corporate and financial) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points to provide indices of highest to lowest appeal to investors with each position explained.
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.
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.
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.
Global & Regional Market Overview
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