New Market Report Now Available: Czech Republic Petrochemicals Report Q2 2013

Fast Market Research recommends "Czech Republic Petrochemicals Report Q2 2013" from Business Monitor International, now available

by Bill Thompson

(WireNews+Co) - Boston, MA - 04 March 2013

This report examines the Czech Republic's integrated petrochemicals sector and the competitive dynamics at play in the domestic market. BMI warns of a deterioration in the outlook for industry, although recent restructuring efforts should help protect margins and ensure Czech production remains competitive relative to other countries in the region.

The report also assesses the strengths of the Czech petrochemicals sector and looks at the country's transformation into one of Central Europe's leading exporters of basic chemicals and polymers, as well as its position as a significant supplier of the domestic automotive and construction sectors. We also assess the strategies being employed by petrochemicals producers to improve competitiveness and protect margins, and counter the effects of the downturn in the eurozone.

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/541181_czech_republic_petrochemicals_report_q2_2013.aspx?afid=201) (http://www.fastmr.com/prod/541181_czech_republic_petrochemicals_report_q2_2013.aspx?afid=201)

BMI estimates that ethylene output grew 7% to around 158,000 tonnes in line with a 9% rise in high density polyethylene (HDPE) output to 285,000 tonnes. Meanwhile, propylene rose 7% to 45,000 tonnes, corresponding with an 8% rise in polypropylene (PP) to 230,000 tonnes. The weak points were in the fertiliser segment, which registered a 4% fall in urea output to 167,000 tonnes and a 4% rise in ammonia to 135,000 tonnes. Urea production has been on the decline and Unipetrol plans to close its loss-making urea unit. Refining capacity is also being cut with the closure of the small-scale 20,000b/d Paramo refinery. At the same time, Unipetrol is planning to double its HDPE capacity at its Litvinov site, with operations due to start in Q216.

Over the last quarter, BMI has revised the following forecasts/views:

- The packaging and consumer goods industries will be influenced by domestic spending trends, although the outlook remains bleak in 2013 and there is little scope for household spending growth. As such, polyethylene (PE) output will be reliant on export markets if it is to be sustained at 2012 levels.
- Over the long term, the automotive industry will remain a key driver of demand for polymers in the Czech Republic. Automotive production is set to rise by 4% in 2013 following estimated growth of just 0.8% in 2012. Further 28% growth on top of this is expected up to 2017 as a result of plant expansion. Growth in engineering plastics, particularly in the polypropylene (PP) segment, will be influenced by growth in the car industry.
- In BMI's Central and Eastern Europe (CEE) Petrochemicals Risk/Reward Ratings (RRRs), the Czech Republic scores 58.8 points out of a maximum of 100, up 0.1 points on the last quarter due to a slight improvement in the country risk score. However, the country has slipped from joint second place with Poland to third place, 0.1 points behind Poland and 0.4 points ahead of Hungary; all three states have potential to shift places as a result of small changes to their risk scenarios.

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