Recently released market study: Philippines Petrochemicals Report Q2 2011

New Energy research report from Business Monitor International is now available from Fast Market Research
 
March 31, 2011 - PRLog -- The market for petrochemicals products will remain healthy in 2011 with GDP growth forecast at 5.3% and growth sustained at near this level going into 2012, according to BMI's latest Philippines Petrochemicals Report. Demand will be supported by both positive domestic economic conditions and export growth. The exchange rate against the US dollar is likely to remain stable, which should benefit Philippines' regional competitiveness as the Chinese yuan strengthens in value.

In 2010, the year-on-year (y-o-y) growth in plastic products showed a steady decline, largely due to base effects while basic chemicals saw a high level of volatility with sharp rises and dips in output. Performance was patchy, however, with output dipping in Q210 before making a modest recovery in Q310. In 2010, the Philippines had installed PE nameplate capacity of 475,000tpa, PP nameplate capacity of 340,000tpa and PVC nameplate capacity of 100,000tpa, but no ethylene capacity.

Growth in the domestic resins market is prompting oil and petrochemicals producers in the Philippines to consider investment in downstream industries. Plans mooted recently include Petron's indication that it would resurrect plans for a PP plant at Mariveles, in Bataan, with capacity of 160,000tpa PP, expandable to 225,000tpa. The plant will receive feedstock from Petron's nearby 180,000b/d oil refinery at Limay, which can produce 140,000tpa of propylene. Petron is in the process of evaluating the second phase of its refinery master plan, which should entail an additional investment of US$1.5bn. It plans to invest around US$1bn to upgrade its refinery, which will be funded by US$210mn in corporate bonds and a possible share issue. The upgrade will include a second Petro Fluidised Catalytic Cracking (FCC) unit - due to go onstream in 2014 - that will enable Petron to fully convert residual products to higher-value gasoline, liquid petroleum gas (LPG), diesel and propylene, used mainly for domestic consumption.

Until a domestic olefins source is developed, the main weakness in the Philippines' petrochemical industry will remain its dependence on imported ethylene and propylene, as well as aromatics and their derivatives. The production of speciality chemicals and propylene is likely to expand as Petron sets up new petrochemicals plants in the country with the proposed new units likely to bolster overall petrochemicals production by 2015. However, no firm plans have been made, so BMI is holding back on building Petron's plans into its forecasts. The situation may change over the coming months, especially if the economic situation forces the company to shelve some of its capital expenditure plans.

In BMI's Asia Petrochemicals Business Environment Rankings matrix, the Philippines comes 11th out of 12 countries, with 39.9 points, up 0.6pp since the previous quarter due to an improvement in the country risk scenario. This puts it 6.8 points behind Indonesia and 9.4 points ahead of Vietnam. The Philippines petrochemicals sector suffers from a lack of locally available feedstock and a relatively small and inefficient local polymers manufacturing base, which is incapable of supplying the plastics industry. If announced plans for petrochemicals expansion come to fruition, the country could climb up the rankings, but is unlikely to exceed India's score. Nevertheless, the Philippines has a supportive business environment in which the petrochemicals industry can grow.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/128781_philippines_petrochemic...


Report Table of Contents:

SWOT Analysis
- Philippines Petrochemicals Industry SWOT
- Philippines Political SWOT
- Philippines Economic SWOT
- Philippines Business Environment SWOT
Global Overview
- Petrochemicals Market Overview
- Financial Results
- 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)
Emerging Asia Petrochemicals Overview
- Table: Asian Ethylene Projects
Philippines Market Overview
- Market Structure
Industry Trends And Developments
- Trade
- Upstream
Business Environment
- Petrochemicals Business Environment Ratings
- Table: Asia Pacific Petrochemicals Business Environment Ratings
- Business Environment
- Table: BMI's Asia Pacific Business And Operational Risk Ratings
- Table: BMI's Asia Pacific Legal Framework Ratings
- Table: Asia Pacific Labour Force Quality
- Table: Annual FDI Inflows Into Asia, 2006-2007
- Table: Philippines' Top Export Destinations, 2001-2007 (US$mn)
- Table: BMI's Asia Pacific Trade Ratings
Forecast Scenario
- Petrochemicals Forecasts
- Table: Value Of Net Sales Growth By Segment, 2010 (% y-o-y)
- Table: Philippines' Petrochemicals Sector, 2007-2015 ('000tpa, unless otherwise stated)
- Macroeconomic Forecast
- Table: Philippines - Economic Activity; 2006-2015
Company Monitor
- BASF Philippines
- JG Summit Petrochemicals Corp
- PNOC Petrochemical Development
- Petron Corporation
- Tosoh
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

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

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.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

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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.
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