New market study, "Spain Petrochemicals Report Q4 2010", has been published

New Energy market report from Business Monitor International: "Spain Petrochemicals Report Q4 2010"
 
Sept. 21, 2010 - PRLog -- A weak domestic market and volatile export markets will prevent any strong return to growth in the Spanish petrochemicals industry until 2011 at the earliest, according to BMI's report.

The Spanish chemical industry association, Feique, confirmed BMI's previous forecasts of broadly flat chemicals output in 2010 compared with 2009, owing to lingering effects of the global and domestic economic and financial crises and fiscal austerity measures throughout the eurozone. Spanish chemicals output declined by nearly 11% in 2009 compared with 2008, while sales by the industry declined around 9% to EUR47.7bn. On the upside, the decline in the Spanish chemicals industry was far less than in other Spanish industries and fared better than many thought. But BMI shares Feique's belief that chemical industry sales will still be lower than 2006. With a very poor scenario ahead, BMI maintains its forecast overall chemicals output growth of just 0.5%, although domestic restocking and 3% growth in exports should ensure 2.0% growth in the polymers segment. Modest growth rates should be seen in the context of very low base effects, with the industry requiring substantially higher rates of growth to survive. As such, BMI expects some outdated and smaller plants to be taken offline permanently leading to shrinkage in available production capacity.

Much of the increase in output has been due to export demand, but fiscal austerity measures in much of the eurozone will remove this source of growth. Growth in output was spurred by restocking, bolstered by the end of idling at Spanish plants. For example, La Seda de Barcelona is ramping up PET production at El Prat de Llobregat, Spain following a lengthy shutdown. In April 2010, it restarted production at one PET production line at El Prat and brought its other line onstream in May, thereby increasing output to 14,000 tonnes per month in June, or 28% of La Seda's total PET capacity, at a utilization rate of about 95%.

Spain remains burdened with low levels of consumer confidence, contraction of credit and rising inflation, which are dampening domestic demand. Damage is likely to come from a proposed two percentage point hike in VAT rate, to 18%, from H210, further dampening consumer demand for consumer products during H210 and holding back a broad range of petrochemicals end products. The housing market is likely to remain depressed, thereby dampening PVC demand for a further year. We envisage very little pickup in volumes or value of mortgages so long as a massive overhang exists in the property market. The plastics market, particularly for engineering plastics in the PP segment, will be further hampered by the ending of car scrapping incentives in June 2010, although it is unclear how much positive impact that the measures have had on Spanish automotive production, which is normally highly export-oriented.

Several factors will conspire to undermine the industry. The chemicals and plastics sectors will struggle to compete with massive new capacity additions in the Middle East, while it is faced with low productivity, high costs of production, lack of flexible and skilled labour, low level of integration and poor infrastructure. Costs of production, particularly electricity, are a significant and enduring problem for energy-intensive Spanish industries, such as petrochemicals. Unless further major capacity expansions are planned in the years ahead, the sector risks long-term stagnation even beyond the immediate downturn. We believe that Spanish petrochemicals producers will struggle to compete on key export markets in the aftermath of the recession, as more competitive producers in the Middle East and Asia ramp up production. Small plant scale is a further problem - the crackers now coming onstream in the Middle East are in the range of 1.3mn tpa of ethylene. In contrast, Spain's crackers are still well under 1mn tpa at 280,000-735,000tpa.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/83375_spain_petrochemicals_rep...

Partial Table of Contents:

Executive Summary
SWOT Analysis
- Spain Petrochemicals SWOT
- Spain Political SWOT
- Spain Economic SWOT
Global Overview
- Petrochemicals Market Overview
- Table: World Ethylene Production By Country, 2009 And 2014 ('000 tonnes capacity)
- Financial Results
- Table: Financial Results Of Major Petrochemicals Companies, 2009
- Global Oil Products Price Outlook
- Table: Oil Product Price Assumptions, Q409-Q410 (US$/bbl)
- Table: Oil Product Price Data And Forecasts, 2007-2014 (US$/bbl)
European 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
- Mergers, Acquisitions And Related Developments
- Energy Security Concerns EU
Industry Forecast Scenario
- Petrochemicals Outlook
- Table: Spain's Oil, Gas And Petrochemicals Sector, 2007-2014 ('000 tpa unless otherwise stated)
- Macroeconomic Outlook
- Table: Spain - GDP By Contributing Segment, 2007-2015
Company Monitor
- Cia Espanola de Petroleos SA (Cepsa)
- LyondellBasell
- Repsol YPF
- La Seda de Barcelona (LSB)
Country Snapshot: Spain Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Manufacturing Wages, 2000-2012
Glossary Of Terms
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Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=8337...

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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