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United Kingdom Petrochemicals Report Q2 2016

United Kingdom Petrochemicals Report Q2 2016

Above-trend petrochemicals consumption at a time when plastic and rubber output is sluggish should boostUK imports. The competitiveness of British petrochemicals production has been undermined by the lack oflocally available and competitively priced feedstock as well as the strength of the pound against the euro.

As such, British producers are in a weaker position to compete with foreign output.

British chemicals output grew 5.0% with petrochemicals up 6.7%. However, the manufacturing of rubberand plastic products fell 3.4%, reversing the gains made in 2014. The latest survey of business confidencefor members of the Chemical Industries Association (CIA) shows that more than 90% of businesses expectsales volumes to remain or exceed 2015 levels when there was a record 5% growth. More than 40% expectsales volumes to grow in 2016. This lends support to continued domestic petrochemicals growth.

The main downside risk comes from the lack of access to competitively priced feedstock in a global marketfacing over-supply. At a time when naphtha feedstock is declining in value, the recent drive to increaseethane as an alternative appears mistimed. While petrochemicals producer Ineos has secured gas importsfrom the US and acquired North Sea gas fields, these source may be not be price competitive in thelong run. Petrochemicals producers are calling for efforts to advance fracking for gas in order to boostethane availability. However, fracking is at a very early stage and the UK's shale gas fields may not providethe low priced feedstock it needs to compete with rivals in North America and the Middle East.


BMI Industry View
SWOT
Political
Economic
Operational Risk
Industry Forecast
Table: United Kingdom - Petrochemicals Sector (2012-2020)
Macroeconomic Forecasts
Economic Analysis
Table: UK - Economic Dashboard
Industry Risk/Reward Index
Europe Petrochemicals Risk/Reward Index
Table: European Petrochemicals Risk/Reward Index (scores out of 100)
United Kingdom Petrochemicals Risk/Reward Index
Market Overview
Industry Trends And Developments
Company Profile
BP
Table: BP Financial Results (USDmn)
ExxonMobil Chemical
Table: ExxonMobil financial results (USDmn)
Ineos
Shell Chemicals UK
Regional Overview
Plant Turnarounds
Table: Europe Plant Turnarounds
Global Industry Overview
Global - Crude Oil, Refined Fuels And Natural Gas Prices
Table: Global Energy Price Forecasts (2014-2019)
Table: Global Energy Price Forecasts (2020-2025)
Demographic Forecast
Table: Population Headline Indicators (United Kingdom 1990-2025)
Table: Key Population Ratios (United Kingdom 1990-2025)
Table: Urban/Rural Population & Life Expectancy (United Kingdom 1990-2025)
Table: Population By Age Group (United Kingdom 1990-2025)
Table: Population By Age Group % (United Kingdom 1990-2025)
Glossary
Table: Glossary Of Petrochemicals Terms
Methodology
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Petrochemicals Risk/Reward Index Indicators
Table: Weighting Of Indicators

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