Recently published research from Business Monitor International, "United Arab Emirates Petrochemicals Report Q4 2015", is now available at Fast Market Research
[USPRwire, Sun Sep 13 2015] The UAE petrochemicals industry is facing a squeeze on margins as product prices have declined amid over-supply on external markets. The situation will be exacerbated by increase capacity in the Arabian Gulf region with Emirati producers set to raise output at the same time as sanctions are l ifted on Iran, which will lead to a flood of Iranian polymer on the Asian markets from 2016.
The dominant ethane feedstock in the UAE market has declined in competitiveness as a result of lower naphtha costs, which have been driven down by falling crude prices. This has benefited the UAE's more naphtha-reliant competitors, particularly in Asia, its main export market. At the same time, slackening demand in export markets has weakened product prices.
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In these unfavourable market trends, the opening of the Borouge 3 petrochemicals facility in 2014 has come at an inopportune time for Emirati petrochemicals producers. The Borouge 3 complex includes one of the world's largest cracker units with 1.5mn tonnes per annum (tpa) of ethylene production capacity feeding downstream units producing 1.4mntpa of polyethylene and 960,000tpa of polypropylene. Added to this is the planned Chemaweyaat complex, which the emirate hopes will be the world's largest petrochemical complex.
The Chemaweyaat's complex will come into operation in 2016, including an olefins plant, an aromatics complex and a range of downstream polymer and chemical units. The first part of the development, Tacaamol, will use heavy naphtha feed for aromatics units and a lighter naphtha feed for a 1.5mntpa mixed feed cracker. By 2016, BMI expects ethylene capacity of 5mntpa in the UAE, up from 2mntpa in 2013, with PE more than tripling to 3.52mntpa and PP rising by nearly 170% to 2.14mntpa over the period.
The United Arab Emirates 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 United Arab Emirates Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Emirati petrochemicals industry.
* Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Emirati petrochemicals market.
* Target business opportunities and risks in the Emirati petrochemicals sector
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