Report Published: "United States Petrochemicals Report Q1 2016"
New Energy market report from Business Monitor International: "United States Petrochemicals Report Q1 2016"
[USPRwire, Wed Jan 27 2016] The US petrochemicals industry is expected to shrug off the challenge of loss of competitiveness in its dominant ethane feedstock relative to naphtha used by producers in Europe and Asia. US production retains a favourable edge in the cost curve, supply chains are well integrated and feed is sufficient to fulfil the demand of new capacity going forward.
The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council, grew 1.7% y-o-y on average in H215 as measured on a three-month moving average (3MMA). The CAB stabilised in November, rising 0.1% m-o-m following three consecutive months of decline. The pattern reverses a downward trend that had begun to gain momentum. The CAB was up 1.3% y-o-y in November 2015, representing a deceleration of annual growth.
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The focus in coming months will be the planned USD120bn merger of two US chemical giants, Dow Chemical and DuPont. Both companies have failed to convince investors of long-term profitability in an increasingly competitive market. A merger of Dow and DuPont would enable the companies to align their assets, rationalise costs and operations, cut out duplication, and build up their joint strengths. The merger process is likely to be protracted with Chinese anti-trust regulators likely to be a stumbling block. Other M&A activity includes Thailand's Indorama Ventures Olefins' (IVO) acquisition of a 370,000tpa ethylene cracker located in Lake Charles, Louisiana. IVO is taking a 76% interest in the ethylene cracker, with the remaining 24% financial investment being made by Indorama Corporation.
Over the medium term, the country will see capacity growth led by new ethane-fed crackers that exploit growing shale gas output, much of it coming on stream in 2017. In total, 7.34mntpa of new cracker capacity is confirmed within the next five years with proposals for over 10mntpa more cracker capacity, although some of this may not materialise.
The United States Petrochemicals Report has been researched at source, and features BMI Research's market assessment and independent forecasts for key petrochemicals sub-sectors. The report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing companies by products and services, sales, market share, investments, projects, partners and expansion strategies.
BMI's United States Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the American petrochemicals industry.
* Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the American petrochemicals market.
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