Brazil Petrochemicals Report

Published 22 December 2015

Providing expert analysis, independent forecasts and competitive intelligence on the petrochemicals.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Petrochemicals Risk Reward Index, Economic Forecasts, Company Profiles and Global, Regional and Country Industry Overviews.

Why you should buy this report

  • Benefit from the latest market opportunities
  • Understand the threats to your operations and investments and protect your company against future risks
  • Gain insight on emerging trends that could support, strengthen or disrupt your activities in the market
  • Get a full view of the competitive landscape to assess your market position

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Brazil Petrochemicals Report
Product Price
$1,295.00

BMI View: The Brazilian petrochemicals industry is faced with heightened risk amid exchange rate volatility and a slumping domestic market, on top of the worsening business environment which is seeing chemicals industry incentives withdraw, taxes hiked and input costs soar. While export growth helped limit the effects of a deteriorating domestic market in 2015, there is uncertainty over whether the sector will have sufficient access to competitively priced feedstock going forward , even as the recession is set to continue into 2016.

The petrochemicals market was affected by recessionary forces in 2015 with a negative performance across the polymer slate. According to the Brazilian Chemical Industry Association (Abiquim), domestic demand for resins fell 4.7% y-o-y in 9M15. Domestic sales fell by 1.5% y-o-y in the period, while imports showed a reduction of 12.9%. On the upside, production grew 3.9% y-o-y as a result of a 39.6% growth in exports. Exports were boosted by the weakness of the real, which is continuing to slide in value against the US dollar and is set to fall to BRL4.00/USD in the near term.

Recovery of the Brazilian petrochemicals market is unlikely in 2015. This will weigh down potential growth in a broad range of petrochemicals productions, from polymers to synthetic rubbers. Growth in the automotive industry will remain lacklustre, while the construction sector continues to contract even in the year of the 2016 Olympics. Disappointing results in these end-market segments will drag down the performance of local plastics converters that serve these markets.

  • Investment is likely to be negatively affected by a 50% reduction in the Special Chemical Industry Scheme (REIQ), which gives tax incentives for raw materials purchases, in 2016 prior to its abolition in 2017. At the same time, the industry is facing an already high tax burden, with the possibility of additional taxes on financial transactions. On top of this, the costs of inputs are...

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BMI Industry View
7
SWOT
8
Political
10
Economic
11
Operational Risk
12
Industry Forecast
14
Production
14
Consumption
15
Table: Brazil Petrochemicals Sector - Historical Data And Forecasts, 2012-2019
18
Macroeconomic Forecasts
19
Economic Analysis
19
Table: GDP By Expenditure (Brazil 2012-2019)
24
Industry Risk/Reward Ratings
25
Americas Petrochemicals Risk/Reward Index
25
Worsening market risk in Latin America
25
Table: Americas Petrochemicals Risk/Rewards Ratings
28
Market Overview
29
Industry Trends And Developments
32
Petrobras Investment Programme
35
Foreign Ventures
37
Financial Results
38
Bioplastics
38
Company Profile
40
Braskem
40
Table: Braskem Financial Results - BRLmn
44
Petr-leo Brasileiro (Petrobras)
45
Regional Overview
50
Americas Overview
50
Table: Planned Cracker Projects
54
Table: Planned PE Projects In North America, 2014-2019
55
Global Industry Overview
56
Could US Gas Run out-
58
Project Curtailments
60
Medium-term Outlook
61
Global - Crude Oil, Refined Fuels And Natural Gas Prices, 10-Year Forecasts
64
Table: Energy Price Forecasts (Global 2013-2018)
64
Table: Energy Price Forecasts (Global 2019-2024)
65
Demographic Forecast
67
Table: Population Headline Indicators (Brazil 1990-2025)
68
Table: Key Population Ratios (Brazil 1990-2025)
68
Table: Urban/Rural Population & Life Expectancy (Brazil 1990-2025)
69
Table: Population By Age Group (Brazil 1990-2025)
69
Table: Population By Age Group % (Brazil 1990-2025)
70
Glossary
72
Table: Glossary Of Petrochemicals Terms
72
Methodology
73
Industry Forecast Methodology
73
Risk/Reward Index Methodology
75
Table: Petrochemicals Risk/Reward Index Indicators
76
Table: Weighting Of Indicators
77

The Brazil 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 Brazil Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Brazilian petrochemicals industry.

Key Benefits

  • Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Brazilian petrochemicals market.
  • Target business opportunities and risks in the Brazilian petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Brazil.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).

Coverage

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.

Market Overview

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.

Company Profiles*

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.

Sources

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.