New Market Research Report: China Petrochemicals Report Q1 2016
New Energy market report from Business Monitor International: "China Petrochemicals Report Q1 2016"
[USPRwire, Fri Dec 04 2015] The Chinese petrochemicals industry was already witnessing a slowdown in H115, but the yuan devaluation and the stock market crash will have a significant effect on activity over the near term. The export boost gained through devaluation will be offset by slackening domestic demand and long-standing issues of over-capacity in some segments, particularly in the light of mounting environmental concerns, could result in project delays, lower capacity utilisation and potentially some plant closures.
China's economic troubles are set to cause multiple problems for the petrochemicals industry. The fall in the value of the yuan will saddle Chinese businesses with significant foreign-exchange losses at a time of rising debt burdens and slowing growth. Low global interest rates and tight domestic credit conditions have prompted Chinese firms to borrow from abroad and the yuan's decline has merely added to the cost of servicing US dollar denominated debt. The accounting loss is unlikely to have an immediate effect on cash flow, but when debt matures and needs paying down, there could be significant problems if the yuan does not regain its value.
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On the upside, the biggest petrochemicals producers such as Sinopec have significant US dollar revenue from overseas operations that should ease the financial pressure they face. These investment-grade companies, owned by the state, should therefore remain relatively insulated from the effects of the yuan on debt
Coal-based petrochemicals are flooding the market with cheap product, depressing polypropylene prices in China and the rest of Asia.
Margins in refining and petrochemicals are diminishing despite lower feedstock costs due to slackening demand growth.
The China Petrochemicals Report has been researched at source, and features BMI Research's market assessment and independent forecasts for key petrochemicals sub-sectors. The report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing companies by products and services, sales, market share, investments, projects, partners and expansion strategies.
BMI's China Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Chinese petrochemicals industry.
* Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Chinese petrochemicals market.
* Target business opportunities and risks in the Chinese petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in China.
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