Israel Petrochemicals Report

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.

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  • 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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Israel Petrochemicals Report
Product Price
$1,295.00

External markets are playing a crucial role in determining the fate of the Israeli economy, as accommodative fiscal and monetary policies have largely reached their limits in stimulating growth in petrochemicals consuming markets, such as construction. Although faltering growth in key developed export markets will continue to weigh on the relatively large external sector, diversification towards faster-growing emerging markets, as well as ongoing product specialisation, could lessen the constraint.

In January-July 2016, the value of plastic and rubber output grew 9.5%, rebounding from a lacklustre year in 2015 when it fell 0.4%. Chemicals saw growth of 6.8%, building on 1.6% growth in 2015. However, much of this growth was due to rising product prices on the back of growth in feedstock costs. With petrochemicals producers seeing margins squeezed in H116, strong headline figures appeared to hide a market that is stagnating with potential for contraction in volumes.

  • Naphtha costs will be crucial in the Israeli petrochemicals industry over the medium term. The theoretical surplus between supply and demand in the global oil market will grow over the coming years, precipitating a decline in the price of oil and a corresponding decline in naphtha feedstock costs. For Israel's relatively small, naphtha-fed petrochemicals industry, this will be crucial to ongoing profitability.

  • We envisage no increase in petrochemicals capacities over the next five years with ethylene remaining at 698,000 tonnes per annum (tpa) and polymers capacities staying at 570,000tpa polyethylene, 680,000tpa polypropylene and 200,000tpa polyvinyl chloride.

  • Israel remains in sixth place in BMI's Middle East and Africa Petrochemicals Risk/Reward Index matrix, but its score has fallen 0.1 point this quarter to 56.9 points due to a 1.9 points reduction in the country risk score which was mostly offset by a 4.0 points rise in its market risk score. The improved output for domestic downstream end-users has enhanced market risk even as long-term country risk factors - which take into account economic, political, external and financial risk - have deteriorated. Nevertheless, it retains the best Country Risk score in the Middle East, but it is unlikely that Israel will see movement in its ranking in the foreseeable future. It lies 0.6 points behind Qatar and 5.3 points ahead of Egypt

BMI Industry View
7
SWOT
8
Political
10
Economic
12
Operational Risk
13
Industry Forecast
15
Table: Israel's Petrochemicals Sector, 2012-2020 ('000 tpa, unless otherwise stated)
18
Macroeconomic Forecasts
19
Economic Analysis
19
Industry Risk/Reward Index
24
MEA Petrochemicals Risk/Reward Index
24
Table: MEA Petrochemicals Risk/Reward Index - Q4 2016
28
Israel Risk/Reward Index
29
Market Overview
30
Industry Trends And Developments
33
Upstream
34
Company Profile
37
Bazan Group (Oil Refineries Ltd)
37
Israel Chemicals Ltd (ICL)
41
Regional Overview
44
Middle East And Africa Overview
44
Global Industry Overview
50
Demographic Forecast
57
Table: Population Headline Indicators (Israel 1990-2025)
58
Table: Key Population Ratios (Israel 1990-2025)
59
Table: Urban/Rural Population & Life Expectancy (Israel 1990-2025)
59
Table: Population By Age Group (Israel 1990-2025)
60
Table: Population By Age Group % (Israel 1990-2025)
61
Glossary
62
Table: Glossary Of Petrochemicals Terms
62
Methodology
63
Industry Forecast Methodology
63
Risk/Reward Index Methodology
65
Table: Petrochemicals Risk/Reward Index Indicators
66
Table: Weighting Of Indicators
67

The Israel 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 Israel Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Israeli 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 Israeli petrochemicals market.
  • Target business opportunities and risks in the Israeli petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Israel.
  • 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.