Australia Petrochemicals Report 2011: New research report available at Fast Market Research

Nov. 28, 2010 - PRLog -- The future of the Australian petrochemical industry depends on exploiting its full potential in ethane feedstock, which can be achieved through increased output in the purification of gas for liquefication. Naphtha streams are unlikely to increase substantially due to the declining growth in oil production and the country has yet to leverage its advantages in local ethane availability for downstream industries.

Ethylene capacity is to remain at 515,000tonnes per annum (tpa), while PE and PP capacities are likely to remain static at 410,000tpa and 355,000tpa respectively. However, 2010 saw the end of polystyrene production in Australia following Huntsman's decision in September 2009 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 petrochemicals-utilising products. In much of 2010, China's production of polymer grew at three times the rate of domestic demand, leading to flat growth in imports. However, we expect a rationalisation of the Chinese petrochemicals industry in 2011, which will have to address the problems of overstocking, lower than expected demand growth and a drastic increase in volumes from the Middle East, and new start-ups in China and Singapore. At the same time, the yuan has strengthened, helping to ameliorate the situation for Australian exports. These factors should help support Australian exports.

Nevertheless, BMI forecasts a slowdown going into 2011 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 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.

Australia ranks eighth in BMI's Petrochemicals Business Environment Ratings for the Asia-Pacific region with 63.4 points, unchanged from the previous year. It lies just 0.1 point behind Malaysia and 1.6 points ahead of India. Although Australia has only a modest petrochemical sector, it scores well in terms of infrastructural development and risk factors. Its score would improve if investors took full advantage of the country's plentiful gas reserves, which could provide a source of competitively priced ethane feedstock. However, BMI does not think a new world-scale cracker plant will come online in the next five years, so Australia's score is unlikely to improve in the medium term.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/96377_australia_petrochemicals...

Report Table of Contents:

Executive Summary
SWOT Analysis
- Australian Petrochemicals Industry SWOT
- Australia Political SWOT
- Australia Economic SWOT
- Australia Business Environment Swot
Global Market 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 2010 (US$/bbl)
- Table: Oil Product Price Forecasts (US$/bbl)
Emerging Asia Petrochemicals Overview
- Table: Asian Ethylene Projects
Australia Market Overview
- Table: Australia Petrochemicals Facilities 2008
Industry Trends and Developments
- Feedstock Potential
- Liquefied Natural Gas
- Table: LNG Terminals in Australia
- Petrochemicals Developments
Business Environment
- Asia Pacific Petrochemicals Business Environment Ratings
- Table: Asia Pacific Petrochemicals Business Environment Ratings
- Limits of Potential Returns
- Risks to Realisation Of Returns
- Australia's Business Environment
- Latest Developments
- Table: BMI's Business And Operational Risk Ratings
- Table: BMI's Legal Framework Ratings
- Table: Labour Force Quality
- Table: Annual FDI Inflows Into Asia, 2006-2008
- Table: BMI's Trade Ratings
- Table: Australia's Top Export Destinations, 2001-2008
Industry Forecast Scenario
- Table: Australia's Petrochemicals Sector Data And Forecasts, 2007-2015 ('000tpa, unless otherwise stated)
- Macroeconomic Outlook
- Australia - Economic Activity
Company Monitor
- MEO Australia
- Qenos
Glossary Of Terms
- Table: Glossary Of Petrochemicals Terms
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.