Market Report, "Spain Petrochemicals Report Q2 2011", published

March 30, 2011 - PRLog -- Following a dismal 2010, the Spanish petrochemicals industry goes into 2011 with a gloomy outlook with growth set to remain low and output unlikely to return to pre-crisis levels. The domestic market is set to remain in the doldrums and export markets will perform little better, according to this latest Spain Petrochemicals Report from BMI.

However, there was one glimmer of hope for the industry with Spanish oil refiner Compania Espanola de Petroleos (Cepsa) concluding acquisition of a halted PET unit in San Roque from La Seda de Barcelona (LSB) in January 2011. The purchase is Cepsa's first PET facility and will help it broaden and extend its petrochemical value chain. Cepsa Quimica paid EUR32mn for the 175,000tpa Artenius San Roque plant, which closed in September 2008. Cepsa Quimica runs the nearby 480,000tpa Guadarraque PTA plant and was previously the unit's chief raw supplier. The acquisition will save costs and create a more integrated structure. The reopening of the San Roque PET facility comes nearly a year after LSB brought its PET plant at El Prat de Llobregat following a lengthy shutdown. The ramping up of PET output follows declines in imports from Asia, which had undermined domestic production.

The increase in PET output prompts us to raise our chemicals output growth forecast for 2011 from 3.0% to 3.5%. However, this is still lower than the 4.0% growth estimated in 2010 and not enough to offset the 11% decline reported in 2011. Most of the growth seen in 2010 was due to stronger export performance along with domestic polymers restocking activity. Although production has yet to reach pre-crisis levels, revenues from chemicals production grew by around 8.5% in 2010 with a further 6.5% expected in 2011 as prices recover, more than offsetting the 4.1% decline reported in 2009. As such, by end-2011, annual sales could reach around EUR60bn. Exports are leading the recovery, increasing around 17.5% in 2010 to over EUR23bn. In 2011, exports are set to rise by a further 17% to EUR28bn. The fortunes of the Spanish chemicals industry have been far more favourable than the rest of the industrial sector. However, BMI still expects some outdated and smaller plants to be taken offline permanently leading to shrinkage in available production capacity, although continuing restructuring efforts.

Spain scores 67.8 points, putting it in sixth place in our Western Europe Petrochemicals Ratings, 2.3 points behind the UK. Its score has improved due to a rise in its country risk score, particularly its longterm external risk, which led to a 1.3 point rise in its rating this quarter.

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Report Table of Contents:

SWOT Analysis
- Spain Petrochemicals SWOT
- Spain Political SWOT
- Spain Economic SWOT
- Spain Business Environment SWOT
Global Overview
- Petrochemicals Market Overview
- Financial Results
- Table: Financial Results Of Major Petrochemicals Companies, 2009
- Global Oil Products Price Outlook
- Table: Oil Product Price Assumptions, Q410-Q411 (US$/bbl)
- Table: Oil Product Price Data And Forecasts, 2008-2015 (US$/bbl)
European Petrochemicals Overview
- Table: Financial Results Of European Petrochemicals Producers, Q110 (EURmn)
Spain Market Overview
- Market Structure
- Table: Spain's Polymer Capacity
Petrochemicals Business Environment
- Table: Western Europe Petrochemicals Business Environment Ratings
Industry Trends And Developments
- Upstream
Industry Forecast Scenario
- Table: Spain's Oil, Gas And Petrochemicals Sector, 2007-2015 ('000 tpa unless otherwise stated)
- Macroeconomic Outlook
- France - Economic Activity
Company Monitor
- Cia Espanola de Petroleos (Cepsa)
- LyondellBasell
- Repsol YPF
- La Seda de Barcelona (LSB)
Glossary Of Terms
- Table: Glossary Of Petrochemicals Terms
BMI Methodology
- How We Generate Our Industry Forecasts
- Chemicals And Petrochemicals Industry
- Cross Checks
- Business Environment Ratings
- Table: Petrochemicals Business Environment Indicators And Rationale
- Weighting
- Table: Weighting Of Indicators

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.