Boston, MA -- (SBWIRE) -- 07/07/2014 -- The Spanish petrochemicals industry is witnessing strengthening growth following a period of a sharp and prolonged downturn. Strong export growth will be key to the revival of the sector, but the industry will not get back to previous levels of production due to permanent plant closures in recent years, according to BMI's latest Spain Petrochemicals Report.
In Q114, the chemicals production index grew by an average of 3.5% year-on-year (y-o-y), while the rubber and plastic index grew by an average of 3.6%; this follows growth of -1.0% and 1.5% in 2013, respectively. The rate of growth is in line with BMI's expectations and if output holds at rates seen in Q114, chemical production is set to rise by around 2% and rubber and plastic output will grow 7% for the full year. This compares to the 2-3% growth forecast in the previous quarter.
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Spain's economy will return to growth in 2014, but will be dependent on exports. As such, the external market will play an important role in the ongoing recovery in petrochemicals. Germany, which has seen a better-than-expected increase in demand, has been the chief target for Spanish output. With Germany's industrial sector set to notch 3.9% growth in 2014, the outlook is brightening.
Key views on the sector:
- BMI has previously highlighted that automakers are increasingly using Spain as a production-for-export base. In 2014, we forecast 6.0% growth in automotive output as exports continue to drive output growth, and we expect to see sustained growth over the remainder of our forecast period until 2018. The automotive industry is a major consumer of plastics and rubber and plays a vital role in Spain's industrial consumption of petrochemicals goods. The sector's revival will spur the Spanish petrochemicals market.
- With demand recovering in Spain's main trading partners in Europe and weak domestic demand likely to restrict imports, we forecast real GDP to expand by 1.0% in 2014 and 1.6% in 2015. As such, the domestic market for...
The Spain 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 Spain Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Spanish petrochemicals industry.
- Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Spanish petrochemicals market.
- Target business opportunities and risks in the Spanish petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Spain.
- 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 petrochemicals markets, regulatory changes, major investments, projects and company developments.
Structure, size and value of the industry sector; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments.
Business Environment Ratings
BMI's Petrochemicals Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors (both corporate and financial) in the regional petrochemicals market.
The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Ratings products.
Industry Trends & Developments
Evaluation of company and sector-wide developments, including key projects (as well as expansion plans), latest company financial details and proposed international ventures.
BMI Industry Forecasts
Historic data series (2009-2012) and forecasts to end-2018 for all key industry and economic indicators supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
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