The Belgian petrochemicals industry is attracting investment due to its strong infrastructural advantages, but could still feel the effects of a downturn in the eurozone that would threaten profit margins, according to BMI's latest Belgium Petrochemicals Report.
Belgium hosts leading petrochemicals companies with a strong and well integrated value chain. Antwerp's status in terms of both high-quality and cost-effective production, as well as extensive access to markets and its infrastructure are appealing to petrochemicals players as is its open economy with foreign trade representing more than 80% of GDP.
However, a lack of domestic markets for Belgian petrochemicals output exposes it to strong external risk. Belgium is specialised in only a few segments and risks being outflanked by high volume producers in the Middle East, which have indigenous hydrocarbons resources. There is also limited growth potential in a mature market.
Nevertheless, Belgium is seeing an increase in investment activity in the petrochemicals sector, with a focus on product diversification and technological sophistication. Supporting that growth is INEOS's new ethylene terminal in Antwerp which provides 1mntpa of competitively priced ethylene feedstock from the Middle East and is regarded as a good alternative to a world-scale cracker facility.
In 2014, Belgium had ethylene capacity of 2.54mntpa with intermediate and aromatics capacities of 870,000tpa benzene, 890,000tpa ethylbenzene, 1.94mntpa ethylene dichloride (EDC), 810,000tpa vinyl chloride monomer (VCM) and 600,000tpa xylenes. In terms of polymers, Belgium has capacities of 1.64mn tpa high density polyethylene (HDPE), 930,000tpa low density polyethylene (LDPE), 2.1mn tpa polypropylene (PP), 475,000tpa polyvinyl chloride (PVC) and 645,000tpa polystyrene (PS).
There is a danger that JBF Industries' new 432,000tpa bottle-grade polyethylene terephthalate (PET) plant at Geel will exacerbate a situation of over-capacity, leading to...
The Belgium 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 Belgium Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Belgian petrochemicals industry.
- Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Belgian petrochemicals market.
- Target business opportunities and risks in the Belgian petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Belgium.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis, covering the petrochemicals markets, regulatory changes, major investments, projects and company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the petrochemicals sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2009-2013) and forecasts to end-2019 for key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Energy: Oil production (‘000 b/d), oil consumption (‘000 b/d), net oil exports (‘000 b/d), gas production (bcm), gas consumption (bcm), net gas exports (bcm), oil refinery capacity (‘000 b/d).
- Petrochemicals: Ethylene capacity (‘000 tpa), ethylene production (‘000 tpa), ethylene consumption (‘000 tpa), polyethylene capacity (‘000 tpa), polypropylene capacity (‘000 tpa), polyvinyl chloride capacity (‘000 tpa), polyolefins consumption (‘000 tpa).
- Oil Products Prices: Price forecasts for all major oil-based products (USD/bbl) at major global energy trading hubs.
- Economic: Nominal GDP (USDbn), real GDP growth (%), GDP per capita (USD), population (mn), unemployment (%), exchange rate (against USD).
BMI’s Petrochemicals Risk Reward Index
BMI’s Risk Reward Indices provide investors (both corporate and financial) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
Structure, size and value of the industry sector; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments.
Industry Trends & Developments
Evaluation of company and sector-wide developments, including key projects (as well as expansion plans), latest company financial details and proposed international ventures.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Global & Regional Market Overview
Analysis of the key trends driving the global industry, including worldwide output/capacity and demand analysis across ethylene, polyethylene, polyvinyl chloride, polystyrene, polyethylene terephthalate and polypropylene. The regional analysis looks at the implications of local and global trends on specific company activity.
Sub-sectors covered by the Petrochemicals Reports include:
Oil & Gas, Oil Refining, Olefins (ethylene, propylene), Polyolefins (polyethylene, polypropylene), Polyvinyl Chloride, Polystyrene
Please note – not all country Reports cover all sub-sectors – see website for details.
The Petrochemicals Market Reports are based on a network of primary sources, such as multilateral organisations (ACC, APLA, Cefi c, ICCA, ICMA), national chambers of commerce and industry, national statistical offi ces, government ministries and central banks, and multinational companies.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.