Q1 2013 Turkey Petrochemicals Industry Research Report

This latest Turkey Petrochemicals Report examines the performance of the Turkish petrochemicals market in 2012 and assesses the prospects for the near-term and long-term. It also examines the exposure of petrochemicals-consuming industries to the EU market and whether the region’s economic slowdown will have an impact on investment decisions going forward.

Get your copy of this report @ http://www.rnrmarketresearch.com/turkey-petrochemicals-report-q1-2013-market-report.html

Turkey’s position as a manufacturing hub for Europe has served it well in the past, but has exposed it to the Eurozone sovereign debt crisis. An indicator of the turbulence facing Turkish petrochemicals consuming industries is the contraction in the automotive industry, which BMI believes saw output fall 3% in 2012. Some domestic-oriented markets have fared a little better with construction growth at an estimated 6.2%, albeit nearly half the level achieved in the previous year. Most of this growth is in road infrastructure with residential and commercial construction – the key driver of PVC consumption - lagging behind, with annual growth averaging just 1% over the next five years.

Over the last quarter, BMI has revised the following forecasts/views:
The Turkish petrochemicals market stagnated in 2012 as GDP growth sank to an estimated 3 %from 8.5% in the previous year. Domestic polymer demand faltered in H212 prompting Petkim to reduce its list prices for polyethylene (PE), poly vinyl chloride (PVC) and polypropylene (PP)
by 1-2% in Q412.

The Turkish market should pick up in 2013, although not at the high rates seen in recent years as economic activity and external markets will remain relatively subdued. Pent-up demand and restocking will, at least, prompt growth in demand.

The industry is preparing for a surge in basic chemicals production, although this is unlikely to come before 2018. Petkim aims to increase gross production from 3.1mntpa to a minimum of 6mntpa by 2018.

A number of other producers are also expanding downstream production in Turkey, particularly in the PP and polyethylene terephthalate (PET) segments.
Turkey has fallen one place to sixth place in BMI’s CEE petrochemicals business environment ratings this quarter, although its score remains unchanged at 48.7 points. Slovakia has passed Turkey in the regional rankings due to an improvement in its country risk ratings. This quarter, Turkey is 1.4 points behind Slovakia and 3.3 points ahead of Romania.

Get sample copy of Turkey Petrochemicals Report

@ http://www.rnrmarketresearch.com/contacts/request-sample?rname=64950

Get sample copy of Kuwait Petrochemicals Report

@ http://www.rnrmarketresearch.com/contacts/request-sample?rname=64901

Get sample copy of Iran Petrochemicals Report

@ http://www.rnrmarketresearch.com/contacts/request-sample?rname=64896

Get sample copy of Qatar Petrochemicals Report

@ http://www.rnrmarketresearch.com/contacts/request-sample?rname=60217

Australia Petrochemicals Production Market Report 2013

The Australian petrochemicals industry is being sidelined as investment pours into gas liquefaction,
which will be the focus of downstream developments over the next five years, according to BMI’s latest Australia Petrochemicals Report.

Buy your copy of this report @ http://www.rnrmarketresearch.com/australia-petrochemicals-report-2013-market-report.html

The future of the Australian petrochemicals industry depends on exploiting its full potential in ethane feedstock, which can be achieved through increased output in the purification of gas for liquefaction. Naphtha streams are unlikely to increase substantially due to the declining growth in oil production. We are assuming oil production will be 465,000 barrels per day (b/d) in 2013 and then fall to 456,700b/d by 2017. However, gas production growth will outpace demand growth and we see export potential rising from an estimated 20.37bn cubic metres (bcm) in 2012 to over 90bcm by 2017.

Domestic and leading international companies are investing heavily in gas production and liquefied
natural gas (LNG) exports to help offset declining oil output, but there is little interest in using the
country’s ethane reserves and adding value to production through basic chemicals. The main downstream growth area is fertilisers. India’s Deepak Fertilisers and Petrochemicals say it is working towards setting up a 300,000 tonnes per annum (tpa) technical ammonium nitrate (TAN) plant in the state of South Australia, with completion possible in mid-2014 at the earliest. Yara International is planning a 330,000tpa TAN plant to be operated by Burrup Holdings under a 50:50 joint venture (JV) between the two partners; Yara has a minority shareholding in Burrup Holdings. However, this is likely to be delayed pending the outcome of a disagreement between Burrup Holdings’ majority shareholders; the businessman Pankaj Oswal objects to the JV on the basis it will harm the value of his shares.

Ethylene capacity is likely to be 550,000tpa in 2013, while polyethylene (PE) and polypropylene (PP) capacities are likely to remain relatively static at 420,000tpa and 355,000tpa respectively. However, in 2010 polystyrene (PS) production in Australia ended following Huntsman’s decision to close its facilities, which included 30,000tpa of PS capacity.
 
The Australian petrochemicals industry is influenced by developments in China, Australia’s main export market for petrochemicals and products that utilise petrochemicals. BMI forecast a slowdown in Chinese demand growth in 2012 as a result of more sluggish demand in the automotive, consumer goods and construction industries in China and the domestic market. BMI now sees evidence of a bubble in the Chinese property market. If tightening of the credit market continues and the pace of construction abates, the slowdown will lead to zero growth in the polyvinyl chloride (PVC) segment and slow growth in PE and PP. However, if the bubble bursts and China falls into recession, the consequences for the Australian petrochemicals industry will be more devastating than the 2009 contraction.

A new carbon emissions scheme also poses a downside risk. Chemical and plastics manufacturers are set to receive 66% of their emissions permits for free during the initial stages of the scheme, with liquefied gas producers to receive 50%. However, the carbon tax has attracted opposition from petrochemicals producers and downstream processors. BMI believes that carbon taxes are unlikely to be a significant threat to Australian petrochemicals production as the costs will be manageable. The costs will vary across the sector according to the amount of carbon emitted, the compensation offered and the ability to pass on costs to consumers. Producers of advanced, specialty products will be the least affected, while the cost of producing basic chemicals will rise.

Report Details:

 

Published: Oct 2012

No of Pages: 51

Price: Single User License: US $1175