Quarterly Business Analysis - Middle East
MIDDLE EAST PRODUCERS HIT BY FALLING PRICES
Even Middle East producers, with unrivalled feedstock advantage, have not been immune to the collapse in petrochemical prices, with regional profitability down sharply from levels the region had become accustomed to.
ChemSystems is very pleased to introduce the new QBA Middle East report as the fourth element of its long running reports on the profitability of the industry, joining reports already produced for Western Europe, The United States and Asia, and in recognition of the regions arrival as a key production hub in the industry.
This new Middle East focussed report addresses the delivered cost competitiveness of commodity petrochemicals exported out of the Middle East, and should prove invaluable both to local producers as well as those in markets benefiting from supply of material out of the Gulf.
This report includes competitive delivered cost economics for olefin and integrated derivative production based in the Middle East, and considers the relative competitiveness of both ethane and condensate crackers. Future editions will include relevant ethane-propane cracking. The report also includes a key analysis of propane dehydrogenation economics and demonstrates the resulting competitiveness of integration to polypropylene.
Middle East cash margins have fallen markedly from the levels that producers have grown accustomed to over the last three years. With product prices down through a double impact of reduced costs, as petrochemical feedstock costs fell with crude oil in developed markets, and falling further due to dramatically weakened profitability across all sectors, the revenues available to Middle East exports is sharply reduced. Added to this reduced revenue is the new challenge of finding markets willing and able to absorb the ever increasing volumes flowing from the Gulf.
Middle East Cash Margin Index
(Petrochemicals and Polymers (Q1 1995 = 100))
The Middle East will see numerous start ups over the next year or so and will add greatly to the already significant export flows leaving the region. This increased trade will impact on pricing power in the receiving markets as consumers gain the opportunity to purchase material from a wider range of suppliers. This report will be essential reading to understand both the profitability achieved by these new exporters, as well as the impact the Middle East is having on the established industry in Western Europe and Asia.
CLICK HERE to request a sample copy of the Middle East QBA report.
Nexant’s “Quarterly Business Analysis” reviews regional trends in production economics for commodity petrochemicals and polymers in Western Europe, United States and Asia Pacific. The reports are published as part of ChemSystems Petroleum and Petrochemical Economics Programme (PPE). Subscriptions to the programme are available from www.chemsystems.com or by emailing ChemSystems@Nexant.com .
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