The Polish petrochemicals industry is witnessing strong growth amid solid economic fundamentals that are supporting local manufacturing. The background of growth is encouraging local producers to step up their acquisitions as they seek to diversify their production base and secure feedstock.
In the first nine months of 2015, polyethylene output was up 12.7% y-o-y to 281,000 tonnes, polypropylene increased 12.3% to 187,800 tonnes and polyvinyl chloride rose 16.4% to 244,400 tonnes. The rate of output growth came on the back of the robust recovery in domestic demand, although there are strong upside risks to these forecasts. In 2016, construction growth of 4.7% is likely to stimulate plastic piping and PVC sheet consumption, while 1.1% growth in vehicle output following 15.1% growth in 2015 should provide a robust climate for engineering plastics and synthetic rubbers.
Polish petrochemicals producer PKN Orlen's annual sales at targeted at 900,000 tonnes in 2017, while sales volumes from the company's new purified terephthalic acid plant should reach 600,000 tonnes in 2017. Olefins production volumes should rise 7% in the coming five-year period compared with the previous one. Orlen is also investing in upstream shale gas exploration in Poland as well as making acquisitions abroad.
In 2015, Poland had olefins of 760,000 tonnes per annum (tpa) of ethylene, 475,000tpa propylene and 60,000tpa butadiene. Polymer capacities include 320,000tpa high-density polyethylene, 170,000tpa low-density polyethylene, 400,000tpa polypropylene, 550,000tpa PVC, 90,000tpa polystyrene and 120,000tpa polyethylene terephthalate. In the fertiliser segment, it had capacities of 1.4mn tpa in both ammonia and urea.
Polish refiners Grupa Lotos and Grupa Azoty have proposed a 1mn tpa petrochemicals complex in Gdansk, based either on an ethylene cracker or an aromatics extraction plant. If it is constructed, it will be the biggest petrochemicals investment in Europe, apart from Russia, for many years, although it is unlikely to come onstream before 2019. Key to the success of the plant will be low cost feedstock, which would require sustained low naphtha costs, which themselves depend on low crude prices.
Poland's Risk/Reward Index remains at 59.2 points this quarter, with a healthy market risk score and strong economic fundamentals. This puts it 0.4 points ahead of Hungary and 2.7 points behind Italy. Its risk scores are among the best in Europe, but could be undermined if the new right-wing Law and Justice Party government, elected in October, passes legislation that is hostile to investment.
The Poland 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 Poland Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Polish petrochemicals industry.
- Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Polish petrochemicals market.
- Target business opportunities and risks in the Polish petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Poland.
- 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.