New market study, "Romania Petrochemicals Report Q3 2016", has been published

Fast Market Research recommends “Romania Petrochemicals Report Q3 2016” from Business Monitor International, now available

New market study, "Romania Petrochemicals Report Q3 2016", has been published

PR-Inside.com: 2016-08-16 18:28:43

Romania’s petrochemicals industry is finally seeing an improvement in performance following years of decline. Oltchim slashed losses and boosted profit in 2015, providing the basis for privatisation, possibly including the Arpechim refinery on which it depended for feedstock. Refinery integration and capital investment following privatisation could significantly boost Romanian petrochemicals output.

Weaker oil prices have helped Romania’s downstream sectors, with refining margins improving as a result and thereby reversing the situation of regular quarterly losses. This is helping drive down the cost of naphtha feedstock used in the Romanian petrochemicals industry, reviving the fortunes of the sector.

Romania’s rubber and plastics output notched up an impressive performance in 2015, with growth of 8.7% y-o-y. However, chemicals output declined 5.0%. The growth in polymers has been supported by a recovery in volumes of troubled Romanian producer Oltchim. The company registered a preliminary net profit of RON2.3bn, due to the cancellation of debts, following losses of RON459mn in 2014. Oltchim’s preliminary turnover grew by 18% to RON742mn in 2015, from RON628mn in 2014.

Full Report Details at
www.fastmr.com/prod/1182891_romania_petrochemicals_report.aspx?a ..

Nevertheless, Romania has modest olefins capacities of 200,000 tonnes per annum (tpa) ethylene and 100,000tpa propylene, feeding capacities totalling 320,000tpa polyethylene and 80,000tpa polypropylene. Romania also has 60,000tpa polystyrene and 170,000tpa polyvinyl chloride. As such, the industry is small and lacks economies of scale to compete with foreign producers.

Weaker oil prices have helped Romania’s downstream sectors, with refining margins improving as a result, and thereby reversing the situation of regular quarterly losses. This is helping drive down the cost of naphtha feedstock used in the Romanian petrochemicals industry, reviving the fortunes of the sector.

In spite of the return to profitability, the government has indicated it will not privatise Oltchim in 2016. Moreover, the government’s decision to assist the company is now the subject of an investigation by EU regulators for possible breach of state aid rules, according to reports in April 2016. The European Commission said it would examine the cancellation of debt and continuing provision of electricity, steam and saline solutions to Oltchim.

We have upgraded forecasts for growth in the Romanian construction sector from 4.2% to 7.0% in 2016, followed by 5.6% growth in 2017 and more subdued growth over the remainder of the forecast period through to 2025. This will help support polyvinyl chloride consumption.

In spite of positive indicators in 2015, Romania’s Risk/Rewards Index declined 0.5 points this quarter as a result of doubts over Oltchim’s privatisation in 2016 and the launch of an EU regulatory investigation into the legality of state aid for the company. Should the future of Oltchim be determined through restructuring and privatisation, the score will improve and Romania has the potential to rise up the regional ranking from 14th place.

The Romania 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 Romania Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Romanian petrochemicals industry.

Key Benefits

Benchmark BMI’s independent petrochemicals industry forecasts to test other views – a key input for successful budgetary and planning in the Romanian petrochemicals market.

Target business opportunities and risks in the Romanian petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Romania.

Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI�s key industry forecasts, views and trend analysis, covering the petrochemicals markets, regulatory changes, major investments, projects and company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the petrochemicals sector and within the broader political, economic and business environment.

BMI Industry Forecasts

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 www.fastmr.com/catalog/publishers.aspx?pubid=1010&afid=701

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