Fast Market Research announces the availability of the new Business Monitor International report, "United States Petrochemicals Report Q2 2016", on their comprehensive research portal

Boston, MA -- (SBWire) -- 04/18/2016 --The US petrochemicals market was expected to see some tightening in H116 amid plant turnarounds, but overall the year will see a softening of prices amid slower end-market growth and rising output. As a result, US petrochemicals margins are set to decline, undermining profitability and potentially prompting delays in expansion projects.

In 2016, the US petrochemicals industry is likely to witness more downside risk. The Chemical Activity Barometer (CAB) three-month moving average (3MMA), a leading economic indicator created by the American Chemistry Council (ACC), slipped 0.1% in February following flat performance in January and two months of revised gains in November and December 2015. However, the level in February was still up 1.5% y-o-y. In February, production-related indicators were mixed, reflecting some improvement in plastic resins used in packaging, as well as a downturn in certain performance chemistries related to the oil and gas sector.

Get More Details on this Report and a Full Table of Contents at United States Petrochemicals Report Q2 2016

US petrochemicals' competitiveness is being challenged as its dominant ethane feedstock faces Asian and European rivals that are benefitting from sustained low naphtha feedstock costs. 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. However, lower margins could lead to some projects being postponed or reconsidered.

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.

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 US should raise total ethylene capacity to 38mn tonnes per annum (mntpa) by 2018, up 8.64mntpa from 2015, with capacity growth led by new ethane-fed crackers that exploit growing shale gas output, much of it coming on stream in 2017.

Production growth in the automotive industry is set to moderate due to capacity constraints. However, growth is set to continue steadily over the medium term, thereby ensuring considerable upside for petrochemicals producers, particularly in engineering polypropylene (PP) products, polyurethane upholstery and synthetic rubbers, which are used in the manufacture of vehicles.

The US's Petrochemicals Risk/Reward Index is 90.3 out of 100 this quarter, down 0.1 point due to downside country risk developments. There is little to challenge the US's lead over the Americas with regards to the opportunities offered by its petrochemicals markets, and the numerous country rewards. Its capacities are set to grow on the back of shale gas exploration, the domestic market's recovery is well underway and the regulatory structure is conducive to investment.

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.

Key Benefits
Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the American petrochemicals market.
Target business opportunities and risks in the American petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in United States.
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

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