Petrochemical Industry to 2015 - Increased Demand from China will Drive Recovery

Report Summary

GlobalData, the industry analysis specialist, has released its latest research, Petrochemical Industry to 2015 - Increased Demand from China will Drive Recovery. The study, which is an offering from the company’s Petrochemical Research Group, provides an in-depth analysis of the post-recession Chinese petrochemical industry, with demand and production forecasts and key trends until 2015. It provides the historic and future forecasts of basic petrochemicals and polymers capacity, production and demand in China. The study provides detailed analysis of China’s role in helping the global petrochemicals industry to recover from slowdown. The report presents export trends of major petrochemicals producing countries to China during the slowdown and initial recovery phase. In addition, the report discusses major foreign investments in China. It also describes the growth strategies adopted by major companies in the recovery phase. Overall, the report presents a comprehensive analysis of the Chinese petrochemical market and its trade and collaboration with various countries during the economic crisis and the recovery phase. The report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GlobalData’s research team of industry experts.

The Chinese petrochemicals industry is the fastest growing petrochemicals industry in the world. As with other petrochemical markets, the Chinese petrochemicals market stumbled as recession slowed down the growth, but stimulus packages and strong demand from its large domestic market helped to revive the petrochemicals industry. The Chinese petrochemicals industry is imports-dependent, which will continue to benefit the producers in other countries such as Saudi Arabia, Japan, Korea and the US. These countries can extend their excess supply to the Chinese market. The fast growing Chinese market is attracting foreign producers who are entering into joint ventures with Chinese producers to establish manufacturing facilities in China.

The demand for basic petrochemicals and major plastics in China has increased from 37.949 MMtpa in 2000 to 100.843 MMtpa in 2010, at a CAGR of 10.3%. The demand growth rate in China is high as compared to the production growth rate, which makes it dependent on imports to meet its domestic demand. The growing Chinese demand in the recovery phase provides opportunities to producers in other countries who can export their excess supply to the Chinese market. Major Asian countries such as Japan and South Korea have benefited most by exporting to China. In 2010, Korea accounted for 31% of China’s total basic petrochemicals imports and 21% of major plastics imports, while Japan accounted for 23% of China’s total basic petrochemicals imports and 9% of major plastics imports.

Scope

The report provides in-depth analysis, market opportunities and challenges for manufacturers of petrochemicals, worldwide. It contains detailed information about the Chinese petrochemical industry, planned project details, demand and production forecasts, and import data for major petrochemicals and polymers in China. Its scope includes -

• Effect of economic slowdown on the global petrochemical industry
• Demand for basic petrochemicals and major plastics by volume in key regions - Asia-Pacific, Europe, North America, and the Middle East and Africa.
• Planned capacity addition of basic petrochemicals and major plastics in China.
• Market scenario for major petrochemicals and polymers in China from 2000 to 2010, and forecasts for five years to 2015.
• Imports of major polymers into China from different regions such as Japan, South Korea, the US, Saudi Arabia, Iran and Brazil.
• Major international deals in the Chinese petrochemicals industry in the period 2008-2010.
• Strategies adopted by major petrochemicals producers to utilize growing Chinese demand.

Reasons to buy

The report will enhance your decision making capability in a more rapid and time sensitive manner. It will allow you to -

• Understand the impact of economic crisis on the global petrochemical industry and how the increased demand from China has helped the industry to recover from slowdown.
• Develop business strategies with the help of specific insights on the Chinese petrochemicals market.
• Identify opportunities in the Chinese petrochemical industry.
• Identify prospective investment targets through a comprehensive update and discussion of new petrochemical projects, and major trends in China.
• Increase future revenue and profitability with the help of insights on the future opportunities and critical success factors in the Chinese petrochemical industry.
• Identify entry prospects in the Chinese petrochemical market through analysis of major deals, foreign investments and joint ventures.

Table of contents

1 Table of contents
1.1 List of Tables
1.2 List of Figures

2 Introduction
2.1 Overview
2.2 GlobalData Report Guidance

3 Impact of Economic Slowdown on the Global Petrochemicals Industry
3.1 Economic Crisis and Lower Consumer Spending Affected the Petrochemicals End Use Sectors
3.2 Several Petrochemicals Plants in North America and Europe Shut Down Because of Low Demand
3.3 Petrochemicals Demand Slumped as the Financial Crisis Disseminated Across the Globe
3.3.1 Collapse of Construction, Automotive and Packaging Sectors in North America Caused a Slump in the Petrochemicals Industry
3.3.2 European Petrochemicals Demand Dropped Due to Credit Crunch
3.3.3 Asia-Pacific Petrochemicals Demand Remained Firm, Owing to the Resilient Chinese Market
3.3.4 Persistent Domestic Demand Maintained Steady Growth in the Middle East Petrochemicals Industry
3.3.5 The Latin American Petrochemical Industry Suffered as Demand from the Exports Market Declined

4 Phenomenal Rise of the Chinese Petrochemicals Industry in the Last Decade
4.1 Rapidly Growing Demand Necessitated the Development of Petrochemicals Projects
4.2 Petrochemicals Production and Demand in China Expanded with Growing GDP and Large Market Size
4.3 Low-Cost Labor and Favorable Government Polices Helped China to Hold the Leading Position in the Global Petrochemicals Industry
4.3.1 Low Cost Labor Makes Chinese Production More Efficient
4.3.2 Favorable Government Policies have been Crucial in Promoting the Chinese Petrochemicals Industry

5 Stimulus Package and Strong End Use Demand Facilitated Early Recovery of the Chinese Petrochemicals Industry
5.1 Government Spending Through Stimulus Packages Increased the Petrochemicals Demand
5.1.1 Infrastructure Investment Instrumental in the Revival of the Construction Sector
5.1.2 Petrochemicals-Specific Stimulus Package Boosted the Production Capacity
5.1.3 Home Appliance Subsidy Scheme Fueled the Demand for Polymers in the Country
5.2 Industrial Value Added Output in China Increased as a Result of Stimulus Packages
5.3 End Use Sectors in China Recuperated Early from Recession
5.3.1 The Packaging Sector Recovered and Became the Second Largest Packaging Industry in the World
5.3.2 The Automotive Sector Accelerated Petrochemicals Demand, Driven by the Passenger Cars Segment
5.3.3 The Construction Sector is Backed by the Government Plan to Provide 36 Million Subsidized Housing Apartments
5.4 Petrochemicals Prices Recovered as Demand Revived

6 Imports-Driven Petrochemicals Industry in China Will Help the Global Petrochemicals Industry to Recover from Economic Slowdown
6.1 Basic Petrochemicals Exports to China are Dominated by Major Asian Countries
6.2 Share of Non-Asian Countries in Major Plastics Exports to China have Increased

7 Major Economies of the World to Benefit from the Thriving Chinese Market
7.1 Japan and South Korea are Major Asian Countries to Benefit from Chinese Demand
7.2 The Middle East is Facing Overcapacity and Relying on Exports to China
7.2.1 Construction of Large Scale Petrochemicals Plants in the Middle East Created Overcapacity
7.2.2 China’s Imports Oriented Petrochemicals Industry has Directly Benefited Major Producers in the Middle East
7.3 Exports from Brazil to China Grew Despite Geographic Distance
7.4 The US Petrochemicals Industry Survived the Crisis by Supplying Surplus Quantities to China

8 Foreign Producers are Focusing on Investing in China to Take Advantage of the Expanding Petrochemicals Industry
8.1 Major International Deals in China
8.2 Government Response to Foreign Investment in China

9 Major Petrochemicals Companies in China: Strategies to Sustain Growth
9.1 Royal Dutch Shell plc
9.2 BASF SE
9.3 BP p.l.c.
9.4 Exxon Mobil Corporation

10 Appendix
10.1 Definitions
10.1.1 Installed Plant Capacity
10.1.2 Key Feedstock
10.1.3 Process
10.1.4 Technology
10.2 Abbreviations
10.3 GlobalData’s Research Methodology
10.3.1 Coverage
10.3.2 Secondary Research
10.3.3 Primary Research
10.3.4 Expert Panel Validation
10.4 Contact Us
10.5 Disclaimer

List of Tables

Table 1: Petrochemicals Industry, Major End Use Sectors
Table 2: North America Petrochemicals Industry, Inactive Complex Details by Commodity, 2008-2010
Table 3: Europe Petrochemicals Industry, Inactive Complex Details by Commodity, 2008-2010
Table 4: Europe Petrochemicals Industry, Inactive Complex Details by Commodity, 2008-2010 (Contd.)
Table 5: North America Automotive Industry, Production Growth, %, 2001-2009
Table 6: North America Petrochemicals Industry, Demand Share by End Use Sectors, %, 2009
Table 7: North America Petrochemical Industry, Demand Volume of Basic Petrochemicals and Major Plastics, MMtpa, 2000-2010
Table 8: Europe Automotive Industry, Production Growth, %, 2001-2009
Table 9: Europe Petrochemicals Industry, Demand Share by End Use Sectors, %, 2009
Table 10: Europe Petrochemical Industry, Demand Volume of Basic Petrochemicals and Major Plastics, MMtpa, 2000-2010
Table 11: Asia-Pacific Automotive Industry, Production Growth, %, 2001-2009
Table 12: Asia-Pacific Petrochemicals Industry, Demand Share by End Use Industry, %, 2009
Table 13: Asia Pacific Petrochemical Industry, Demand Volume of Basic Petrochemicals and Major Plastics, MMtpa, 2000-2010
Table 14: Middle East Automotive Industry, Production Growth, %, 2001-2009
Table 15: Construction and Retail Sector, Middle East, Growth Rate, %, 2001-2010
Table 16: Middle East Petrochemicals Industry, Demand Share by End Use Industry, %, 2010
Table 17: Middle East Petrochemical Industry, Demand Volume of Basic Petrochemicals and Major Plastics, MMtpa, 2000-2010
Table 18: South and Central America Automotive Industry, Production Growth, %, 2001-2009
Table 19: Construction and Retail Sector, South and Central America, Growth Rate, %, 2001-2010
Table 20: South and Central America Petrochemicals Industry, Demand Share by End Use Industry, %, 2010
Table 21: South and Central America Petrochemical Industry, Demand Volume of Basic Petrochemicals and Major Plastics, MMtpa, 2000-2010
Table 22: Petrochemicals Industry, China, Basic Petrochemicals and Major Plastics Capacity, MMtpa, 2000- 2015
Table 23: Global Petrochemicals Industry, Basic Petrochemicals Capacity Share by Region, 2000-2010
Table 24: Basic Petrochemicals and Major Plastic Industry China, Planned Project Details by Commodity, 2011-2015
Table 25: Basic Petrochemicals and Major Plastic Industry China, Planned Project Details by Commodity, 2011-2015 (Contd.)
Table 26: Basic Petrochemicals and Major Plastic Industry China, Planned Project Details by Commodity, 2011-2015 (Contd.)
Table 27: Petrochemicals Industry, China, Basic Petrochemicals and Major Plastics Production and Demand, MMtpa, 2000- 2015
Table 28: Global Petrochemicals Industry, Basic Petrochemicals and Major Plastics Demand Share by Region, %, 2000-2010
Table 29: Global Petrochemicals Industry, Basic Petrochemicals and Major Plastics Share by Region, 2000-2010
Table 30: China Manufacturing Industry, Hourly Compensation Costs, $, 2002-2008
Table 31: China Refining Industry, Refinery Start Up, 2009-2015
Table 32: China Ethylene Industry, Plant Start Up, 2009-2010
Table 33: China Industrial Output, Growth Rate, %, March 2008-Dec 2009
Table 34: China Packaging Industry, Output Value, 2003-2010
Table 35: China Automotive Industry, Automotive Production and Sales, 2006-2011
Table 36: China Construction Industry, Total Output Value, $bn, 2000-2010
Table 37: China Petrochemicals Industry, Average Prices, $/Ton, 2000-2015
Table 38: China Petrochemicals Industry, Basic Petrochemicals Imports, MMtpa, 2000- 2015
Table 39: China Petrochemicals Industry, Basic Petrochemicals Exporters to China, %, 2010
Table 40: China Petrochemicals Industry, Major Plastics Imports, MMtpa, 2000- 2015
Table 41: China Petrochemicals Industry, Major Plastics Exporters to China, %, 2010
Table 42: China Petrochemicals Industry, Major Plastics Imports from South Korea, MMtpa, 2000-2010
Table 43: China Petrochemicals Industry, Major Plastics Imports from Japan, MMtpa, 2000-2010
Table 44: Middle East Petrochemicals Industry, Basic Petrochemicals Capacity, MMtpa, 2000-2015
Table 45: Middle East Olefin and Polyolefin Industry, Planned Project Details, 2011-2015
Table 46: Middle East Olefin and Polyolefin Industry, Planned Project Details, 2011-2015 (Contd.)
Table 47: China Polyolefin Industry, Imports from Middle East, MMtpa, 2000-2010
Table 48: China Polyolefin Industry, Imports from Brazil, MMtpa, 2000-2010
Table 49: China Polyolefin Industry, Imports from the US, MMtpa, 2000-2010
Table 50: China Petrochemicals Industry, International Joint Venture Details, 2008-2011
Table 51: China Petrochemicals Industry, License Agreement Details, 2008-2011
Table 52: China Petrochemicals Industry, Acquisition Details, 2008-2011
Table 53: China Petrochemicals Industry, Assets Transaction Details, 2008-2011
Table 54: Royal Dutch Shell plc, Plant Expansions, 2008-2011
Table 55: Royal Dutch Shell plc, Plants Details in China, 2011
Table 56: BASF SE, Planned Project Details, 2011-2015
Table 57: BASF SE, Plant Expansions, 2008- 2011
Table 58: BASF SE, Plants Details in China, 2011
Table 59: BP p.l.c., Plant Expansions in China, 2008-2011
Table 60: BP p.l.c., Plants Details in China, 2011
Table 61: Exxon Mobil Corporation, Joint Venture Project Details in China, 2011

List of Figures

Figure 1: North America Petrochemical Industry, Demand Volume of Basic Petrochemicals and Major Plastics, MMtpa, 2000-2010
Figure 2: Europe Petrochemical Industry, Demand Volume of Basic Petrochemicals and Major Plastics, MMtpa, 2000-2010
Figure 3: Asia-Pacific Petrochemical Industry, Demand Volume of Basic Petrochemicals and Major Plastics, MMtpa, 2000-2010
Figure 4: Middle East Petrochemical Industry, Demand Volume of Basic Petrochemicals and Major Plastics, MMtpa, 2000-2010
Figure 5: South and Central America Petrochemical Industry, Demand Volume of Basic Petrochemicals and Major Plastics, MMtpa, 2000-2010
Figure 6: Petrochemicals Industry, China, Basic Petrochemicals and Major Plastics Capacity, MMtpa, 2000- 2015
Figure 7: Global Petrochemicals Industry, Basic Petrochemicals and Major Plastics Capacity Share by Region, 2000-2010
Figure 8: Petrochemicals Industry, China, Basic Petrochemicals and Major Plastics Production and Demand, MMtpa, 2000- 2015
Figure 9: Global Petrochemicals Industry, Basic Petrochemicals and Major Plastics Demand Share by Region, %, 2000-2010
Figure 10: Global Petrochemicals Industry, Basic Petrochemicals and Major Plastics Production Share by Region, %, 2000-2010
Figure 11: Global Manufacturing Industry, Region Wise Hourly Compensation Costs, $, 2008
Figure 12: China Stimulus Package Details, 2009
Figure 13: China Industrial Output, Growth Rate, %, March 2008-Dec 2009
Figure 14: China Automotives Industry, Monthly Sales, March 2008-December 2009
Figure 15: China Automotive Industry, Sales and Production, 2006-2010
Figure 16: China Construction Industry, Total Output Value, $bn, 2000-2010
Figure 17: China Petrochemicals Industry, Average Prices, $/Ton, 2000-2015
Figure 18: China Petrochemicals Industry, Basic Petrochemicals Imports, MMtpa, 2000- 2015
Figure 19: China Petrochemicals Industry, Basic Petrochemicals Exporters to China, %, 2010
Figure 20: China Petrochemicals Industry, Major Plastics Imports, MMtpa, 2000- 2015
Figure 21: China Petrochemicals Industry, Major Plastics Exporters to China, %, 2010
Figure 22: China Petrochemicals Industry, Major Plastics Imports from South Korea, MMtpa, 2000-2010
Figure 23: China Petrochemicals Industry, Major Plastics Imports from Japan, MMtpa, 2000-2010
Figure 24: Middle East Petrochemicals Industry, Basic Petrochemicals Capacity, MMtpa, 2000-2015
Figure 25: China Polyolefin Industry, Imports from Middle East, MMtpa, 2000-2010
Figure 26: China Polyolefin Industry, Imports from Brazil, MMtpa, 2000-2010
Figure 27: China Polyolefin Industry, Imports from the US, MMtpa, 2000-2010