Recently published research from Business Monitor International, "Saudi Arabia Petrochemicals Report Q2 2015", is now available at Fast Market Research
Boston, MA -- (SBWIRE) -- 02/10/2015 -- The decline in the price of naphtha is posing a major challenge to the competitiveness of Saudi-based petrochemicals production, which is overwhelmingly based on ethane, according to BMI's latest Saudi Arabia Petrochemicals Report.
With naphtha comprising just 11% of feedstock with the majority from ethane, Saudi Arabia stands to suffer from the fall in naphtha price that has come as a result of falling crude oil prices. At the same time, product prices are falling on export markets, leading to a severe squeeze on margins. At stake is the long-term growth in Saudi petrochemicals capacity.
Q115 saw the growth in fertiliser production with the commencement of commercial operations at Saudi Arabian Fertiliser Company's (SAFCO) new 1.1mn tpa urea plant into operation in Q115. This brought the country's total urea capacity to 4.52mn tpa. Increased fertiliser production should tap into rapidly growing demand in the Asian markets.
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- Towards the end of 2015 and going into 2016, Saudi Arabia will see the completion of two major petrochemicals complexes: Sadara and PetroRabigh II. The Sadara project will produce 3mn tpa of petrochemicals from refinery liquids, such as naphtha, as feedstock and as such should benefit from the naphtha price cut. PetroRabigh is set to add 1.2mn tpa of ethylene capacity with significant downstream polymer and aromatics facilities.
- Saudi Arabia's economic performance, with strong growth, should lay the basis for growth in downstream conversion sectors. We forecast real GDP growth of 3.6% in 2015, a slight moderation from an estimated 4.3% in 2014 due to the normalisation of domestic oil production. Strong retail sales will also boost sales of plastics used in packaging, such as PET and polyethylene (PE).
- In BMI's Middle East and Africa Petrochemicals Risk/Reward Index, Saudi Arabia ranks first out of 11 countries, scoring 76.4 out of 100, down 1.2 points since the previous quarter due to a deterioration in its country risk score....
The Saudi Arabia Petrochemicals Report has been researched at source, and features Business Monitor International (BMI)'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 Saudi Arabia Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Saudi petrochemicals industry.
- Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Saudi petrochemicals market.
- Target business opportunities and risks in the Saudi petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Saudi Arabia.
- 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
Historic data series (2009-2013) and forecasts to end-2019 for key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Energy: Oil production (?000 b/d), oil consumption (?000 b/d), net oil exports (?000 b/d), gas production (bcm), gas consumption (bcm), net gas exports (bcm), oil refinery capacity (?000 b/d).
- Petrochemicals: Ethylene capacity (?000 tpa), ethylene production (?000 tpa), ethylene consumption (?000 tpa), polyethylene capacity (?000 tpa), polypropylene capacity (?000 tpa), polyvinyl chloride capacity (?000 tpa), polyolefins consumption (?000 tpa).
- Oil Products Prices: Price forecasts for all major oil-based products (USD/bbl) at major global energy trading hubs.
- Economic: Nominal GDP (USDbn), real GDP growth (%), GDP per capita (USD), population (mn), unemployment (%), exchange rate (against USD).
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