Czech Republic Petrochemicals Report Q2 2016
Czech polymers production appears to be unaffected by the shutdown of Unipetrol's cracker in August2015 due to a fire, which will keep it out of operation until July 2016. The growth in margins on polyolefinsat Unipetrol is an indication that the Czech Republic's market environment has improved. Export marketswill be key to growth, with the German market remaining pivotal for the export of the country'smanufactured products, particularly vehicles, which absorb the bulk of Czech petrochemicals productionIn 2015, Czech chemicals output growth declined 4.5% y-o-y, and rubber and plastics rose by 9% y-o-y.
Low naphtha costs have improved the competitiveness of the sector and boosted polyolefins margins, whilehigher sales volumes - particularly in the polypropylene segment - have been led by a manufacturing surge.
Export-led industries have stimulated petrochemicals consumption, helping to raise cracker capacityutilisation to 89% before the cracker closure; capacity utilisation declined to 72% from August.
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