Lewes, DE -- (SBWIRE) -- 09/13/2016 -- External markets are under pressure and margins are being squeezed by falling prices and rising feedstock costs. However, this will not stop the development of downstream plants, with the Al-Zour project at the greenfield 615,000 barrels per day (b/d) Al-Zour refinery now going ahead following delays, and with debottlenecking projects helping to expand capacity. However, the alleviation of sanctions on Iran will pose a major threat to all regional producers and could still drive Kuwaiti petrochemicals margins down further. There are also downside effects of a medium-term reduction in oil refinery capacity. The slowdown in the Chinese petrochemicals market has exacerbated the problem of oversupply in the Asia Pacific region. Moreover, the Chinese market is moving towards a situation of self-sufficiency.

This is likely to crowd out Kuwaiti exports from the market, requiring producers to seek other markets. The most obvious alternative market is India, which ideally suits the configuration of the Olefins III project with its higher proportion of propylene derivatives that the Indian industry needs to import.

For more information Visit at: http://www.marketresearchreports.com/business-monitor-international/kuwait-petrochemicals-report-q4-2016

The performance of Qatar's petrochemicals industry picked up in Q216 on the back of rising polyethylene export volumes, improved prices and a rise in the ethane-naphtha spread. However, this should not be seen as indicative of a trend as risks are posed by the expected slump in Chinese and European imports. Some segments, particularly fertiliser, are also seeing value decline even though Qatar has increased fertiliser export volumes. Based on our core scenario, we do not envisage a revival of the various plans for new world-scale plants that have been shelved in recent years.

Trends in the Asian market are of significance to the industry, as China and India represent the first and second largest export markets for Qatari polyethylene (PE). There has been a decline in Qatari petrochemicals imports in both markets, and there have been no signs this quarter to indicate that the trend is being reversed. The prospects for the industry will therefore be determined primarily by trends in the volatile and uncertain European markets.

For more information Visit at: http://www.marketresearchreports.com/business-monitor-international/qatar-petrochemicals-report-q4-2016

The Saudi government is targeting national petrochemicals output of 115mn tonnes in 2016, which represents a 46% increase since 2013. There are 26 petrochemicals projects under construction at a cost of USD15bn while another 42 are planned over the next five years at an estimated cost of USD46bn. However, there is the ongoing threat from growth in Iranian exports and the slowdown in the Chinese market. The scale of the Saudi industry should secure the country's position as one of the highest-scoring petrochemicals-producing countries in the world. Moreover, the industry is moving increasingly towards mixed feedstocks, which should allow some flexibility in defending margins in a low oil-price environment.

Saudi petrochemicals earnings have been hit hard by falling product prices as they are closely tied to the price of oil. Petrochemical producers' profits are narrowing as product prices are linked to crude prices, which have remained stubbornly low. Saudi producers will be unable to compensate for the loss of this margin by increasing product prices. Instead, they will have to improve efficiency, although they are already some of the lowest-cost producers globally.

For more information Visit at: http://www.marketresearchreports.com/business-monitor-international/saudi-arabia-petrochemicals-report-q4-2016

About Market Research Reports, Inc.
Market Research Reports, Inc. is the world's leading source for market research reports and market data. We provide you with the latest market research reports on global markets, key industries, leading companies, new products and latest industry analysis & trends.

Yearly/Quarterly Report Subscription: http://www.marketresearchreports.com/subscriptions