Spain Petrochemicals Report Q2 2015
In 2012, the industrial production index for chemicals declined 0.7% on average, while for rubber andplastic products it plummeted an average of 9.0%, compared with growth of 0.2% and -1.5% respectively in2011. In the first four months of 2013, the chemicals production index fell by a further 7.3% while therubber and plastics index fell by 5.0%. This signalled a deterioration of chemical and petrochemicalsperformance in H113. Although there was an uptick in April, the operating environment has not changedradically to support a sustained recovery.
With the rest of the eurozone caught up in a pronounced slowdown, Spain's capacity to export its way out ofrecession has disappeared entirely. We estimated that GDP contracted 1.4% in 2012 and the recessionshould deepen in 2013, when growth should fall to -1.7%. Only a fiscal stimulus is likely to provide aturnaround to escape the debt-deflationary trap Spain is in, but this appears off the cards over the next year.
Over the last quarter BMI has revised the following forecasts and views:
La Seda Barcelona's (LSB) decision in June 2013to file for insolvency underlined the parlous state ofthe industry, with rising raw material costs combined with low demand and increased inventories. Thisputs in doubt LSB's plans to expand its PET plant at El Prat de Llobregat fFrom 220,000tpa to 265,000tpain 2013.
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