Philippines Petrochemicals Report Q2 2016 - New Market Study Published
Recently published research from Business Monitor International, "Philippines Petrochemicals Report Q2 2016", is now available at Fast Market Research
[USPRwire, Mon Mar 21 2016] JG Summit's new petrochemicals facilities led to strong growth in chemicals output and the value of production in 2015, but the plastics sector saw weaker growth and rubber production contracted. Nevertheless, the firm has become more profitable . Additionally, t he outlook for the sector is improving , and t he domestic market benefits from strong growth in end-markets.
In 2015, the value of basic chemicals output soared 31.9%, principally on the back of the new cracker operated by JG Summit Petrochemicals, which has capacities of 320,000 tonnes per annum (tpa) of ethylene and 189,000tpa propylene and feeds a 185,000tpa polypropylene (PP) plant and a 300,000tpa polyethylene (PE) plant. It also produces 218,000tpa of pyrolysis (biomass) gasoline, 150,000tpa of fuel gas and 28,000tpa of fuel oil. With the cracker ramping up production, chemicals output grew 8.8% in 2015. In spite of the increase in feedstock to the associated polymer units, the value of production of plastic products in 2015 declined 0.6%year-on-year ( y-o-y), although volumes rose 7.1%. Meanwhile, rubber output fell 0.3% and he value of output declined 3.4%.
Full Report Details at
The Bataan Refinery upgrade 2 project also came into full operation in Q215 with a new fluid catalytic cracker unit, which has a propylene production capacity of 250,000tpa. The project will also produce other by-products, such as petrochemicals feedstock (particularly propylene) which is to be sold to plastic producers. As a result, propylene production will grow by 200% within a year of operation.
JG Summit grew its net profit in the first nine months by 2.6% y-o-y to PHP16.11bn as treasury losses curbed core earnings. Excluding nonrecurring items, JG Summit's nine-month net profit rose by 39.2% y-o-y to PHP20.69bn on the back of the double-digit expansion in contribution from core units, including its petrochemical business which turned profitable after many years of losses.
Polyvinyl chloride (PVC) will be among those segments that will benefit from growth in the construction sector. We maintain our positive outlook on the residential and non-residential construction sector and forecast real growth of 8.4% in 2016 and 8.6% in 2017, which will provide significant support to growth in polymers as well as hold up prices.
The automotive industry will emerge as a key consumer of petrochemicals products, but this is unlikely to have a significant role in the petrochemicals market in 2016. Vehicle production is forecasted to grow 15% in 2016, an upward revision from 11.7% forecast in the previous quarterly report, and average growth of 15% over our forecast period to 2019.
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.
For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156 (1.413.485.7001 Int'l)
You may also be interested in these related reports:
- India Petrochemicals Report Q2 2016
- Egypt Petrochemicals Report Q2 2016
- Saudi Arabia Petrochemicals Report Q2 2016
- Israel Petrochemicals Report Q2 2016
- Turkey Petrochemicals Report Q2 2016