Now Available: France Petrochemicals Report Q4 2016
Fast Market Research recommends “France Petrochemicals Report Q4 2016” from Business Monitor International, now available
PR-Inside.com: 2016-12-29 13:47:43
Brexit is likely to have significant effects on the French petrochemicals market and will draw focus towards the further restructuring of the industry, which will be crucial to competitiveness. Aside from slower market activity, challenges include the impact of rising crude prices on naphtha feedstock prices; economies of scale at cracker plants; the impact of labour unrest in the refinery sector on the production chain; and the need to secure investment in research and development in order to maintain competitiveness in downstream value-added production.
In terms of long-term prospects, BMI does not believe France’s petrochemicals sector has gone through a sufficient process of structural adjustment to improve cost margins and efficiency, in large part due to the protectionism of the government. We caution French petrochemicals output, in the medium term, could decline as a result of plant closures. This makes it more vulnerable to market shocks and a rise in naphtha costs.
Full Report Details at
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In H116, production indices show that rubber output grew 0.8% year-on-year (y-o-y) with Q2 seeing greater stability in output following a dismal Q1. Meanwhile, plastic continued its strong growth trajectory with output up 5.5% y-o-y. According to the latest figures from the French chemicals industry association Union des Industries Chimiques (UIC), chemicals production – including pharmaceuticals – grew just 0.8% y-o-y in Q116, down from 1.4% growth in Q415. The lower growth was related to a 1.9% fall in exports as demand in the EU diminished. Due to the uncertainty caused by the largely unexpected Brexit vote, BMI expects even slower growth going into H216 with the potential for rubber production to fall back and chemicals and plastic growth to decline.
In the context of a worsening market outlook, as much as a third of French petrochemicals capacity could be put at risk of mothballing or permanent closure due to low capacity, high operating costs and lack of integration with feedstock sources.
For 2016, BMI estimates that France had olefins production capacities of 2.78mn tonnes per annum (tpa) ethylene, 1.8mn tpa propylene and 445,000tpa butadiene. Polymer capacities included 1.44mn tpa polypropylene (PP), 1.22mn tpa low density polyethylene, 705,000tpa high density polyethylene, 560,000tpa linear low density polyethylene, 1.39mn tpa polyvinyl chloride, 330,000tpa polystyrene and 70,000tpa polyethylene terephthalate. In the fertiliser segment, France has capacities of 1.58mn tpa ammonia and 785,000tpa urea. France also had styrene butadiene rubber capacity of 160,000tpa.
In BMI’s Petrochemicals Risk/Reward Index, France scores 71.5 points, down 0.4 points as a direct result of the impact of the Brexit vote on market and country risks. It remains in fifth place in the Europe RRI ranking, 0.4 points behind Belgium and 4.3 points ahead of Spain. While it is unlikely to fall down the ranking over the next few quarters, the potential for a reduction in score will exist with a likelihood of capacity cut-backs and prolonged low growth in consumption.
The France 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 France Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the French petrochemicals industry.
Benchmark BMI’s independent petrochemicals industry forecasts to test other views – a key input for successful budgetary and planning in the French petrochemicals market.
Target business opportunities and risks in the French petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in France.
Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).
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
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