China Petrochemicals Report - Business Monitor International - Industry Reports

China Petrochemicals Report

China Petrochemicals Report - Business Monitor International - Industry Reports
China Petrochemicals Report
Published Jun 25, 2016
99 pages — Published Jun 25, 2016
Price US$ 1,295.00  |  Buy this Report Now

About This Report


China continues to be the motor of the global petrochemicals market. However, economic and regulatory pressures will have a bearing on growth in the near to medium term, particularly in relation to stresses in the construction sector, which is one of the main consumers of petrochemicals. ...However, with the expectation of delays and cancellations in CTO/MTO projects, BMI has forecast an extra --.-mn tpa of ethylene capacity over the next five years, almost double the level achieved in ----. We caution that there could be downside risks to the ethylene capacity forecast, depending on financing, economic viability and demand projects with the potential for delays or cancellations of over -mn tpa of ethylene capacity. � We forecast China s construction sector to grow by an annual average of -.- between ---- and ---- in real terms, a significant slowdown from the --.- registered between ---- and ----. ...� China s Petrochemicals Risk/Reward Index (RRI) score declined by -.- points as the petrochemicals sector faces the brunt of an industrial slowdown. This puts it in third place in BMI s Asia RRI rankings, -.- points behind Japan and -.- points ahead of Singapore.

...Potential restructuring could see petrochemicals operations spun off from the country s large oil companies, potentially leading to divestment in the long-term and greater commercial flexibility. Paraxylene will remain a segment where supply has failed to keep up with demand from the rapidly growth polyester sector. � Industrial reform has led to consolidation within the sector and greater willingness to enter into JVs with foreign firms. China badly needs foreign petrochemicals technology and is actively encouraging foreign JVs with state-owned enterprises; in return, China offers foreign companies a growing domestic market for their products, and low construction and labour costs when building greenfield projects. � WTO accession puts pressure on China to open-up markets and encourage greater participation in the petrochemicals sector. ...� Fuel pricing reforms could improve the fiscal position of the country s downstream companies, such as Sinopec, thereby freeing up investment for the petrochemicals sector. � A push to tap China s shale gas potential could provide cheaper and more abundant feedstock over the long term.

...Some segments, particularly in PET, are highly over-supplied, with Chinese producers struggling to sustain margins. Many small-scale Chinese petrochemicals firms are burdened by low levels of efficiency and poor economies of scale. ...

Document ID
PDF Adobe Acrobat
Buy Now

Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

About the Author

Cite this Report

Business Monitor International - Industry Reports. "China Petrochemicals Report" Jun 25, 2016. Alacra Store. Oct 20, 2016. <>
Business Monitor International - Industry Reports. (2016). China Petrochemicals Report Jun 25, 2016. New York, NY: Alacra Store. Retrieved Oct 20, 2016 from <>
US$ 1,295.00
$  £  
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Market Research from one place.