Recently released market study: United Kingdom Petrochemicals Report Q3 2011

June 18, 2011 - PRLog -- The British petrochemicals industry is making a tentative recovery but the market remains fragile and there is a chance that inflation and economic stagnation could undermine growth in the sector, according to BMI's latest UK Petrochemicals Report.

Despite the Q410 contraction, a spate of trade and production data provide further evidence that the productive sectors are starting to recover and that the economy is tentatively rebalancing. Despite recent signs of slowing down, the productive sectors have nonetheless started to recover from the post-crisis trough, marking one of the few bright spots in the economy, pointing towards a gradual recovery in the British petrochemicals industry.

Providing further support for a recovery in the manufacturing sector, purchasing managers' index (PMI) readings have exceeded the break-even 50.0 threshold since October 2009, with the latest print reading 57.4 in March. Despite order books overflowing, the total volume of production is only gradually picking up. Indeed, the production industries have only managed to reclaim around a third of the losses incurred during the downturn thus far, with total output still 10% below pre-crisis levels. This is in stark contrast to the German industrial machine, which is enjoying a renaissance on the back of surging sales to emerging markets, with petrochemicals output up 11% in 2010 and forecast to rise 4% in 2011.

------------------------------------------------------------
Full Report Details at
- http://www.fastmr.com/prod/171476_united_kingdom_petroche...
------------------------------------------------------------

Given the feed-through from previous sterling depreciation and improvement in global demand, we expect the petrochemicals sector to make further gains this year. While this will not be an uninterrupted trend, we expect to see a more substantial rebalancing towards manufacturing exports over the mediumto- longer term. The main risk factor is the rising price of naphtha feedstock, compounded by imported price pressures which will be passed down the supply chain. BMI believes that margins are too low to absorb these cost pressures and they will inevitably be passed onto the consumer, with the prospect of slower sales growth. Should inflationary pressures continue to build, we would warn that this would risk the recovery.

The UK scores 69.6 points in BMI's latest Western Europe Regional Ratings, unchanged since the previous quarter putting it 0.6 points behind the Netherlands and 1.8 points ahead of Spain. This puts it in sixth place. Protracted economic stagnation, increased political uncertainty and further plant closures could see the country's score diminish further, threatening to drop it into last place.

Report Table of Contents:

SWOT Analysis
- UK Political SWOT
- UK Economic SWOT
- UK Business Environment SWOT
Global Petrochemicals 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)
European Petrochemicals Overview
UK Market Overview
- Market Structure
- Competitive Landscape
Industry Trends And Developments
- Refining
- Upstream
Petrochemicals Business Environment
- Table: Western Europe Petrochemicals Business Environment Ratings
Industry Forecast Scenario
- Table: The UK's Petrochemicals Sector, 2007-2015 ('000tpa, unless otherwise stated)
- Macroeconomic Forecast
- Table: United Kingdom - Economic Activity; 2006-2015
Company Monitor
- BP
- ExxonMobil Chemical
- Ineos
- Shell Chemicals UK
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.

# # #

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.