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Netherlands Petrochemicals Report 2013
Business Monitor International, January 2013, Pages: 54
BMI's Netherlands petrochemicals report examines the recent trends in chemicals and petrochemicals production and assesses whether the industry has the ability to survive in the current economic climate.
The report looks at the most notable recent investments and their impact on the development of the sector.
The Dutch petrochemicals and chemicals industry has a strong presence, with several large international firms now established in the country. However, the industry's competitiveness is now being challenged by the high oil prices. With naphtha representing 96% of the Netherlands' feedstock slate, oil prices are a major determinant in cracker margins. This does not take into account the impact on feedstock prices, as oil is an important raw material for the organic base chemicals sector, which, in turn, produces feedstock for the production of plastics and other large-volume materials. Higher oil prices coupled with lower product prices are likely to reduce the margins of players operating in the Dutch petrochemicals and chemicals arena.
The Dutch petrochemicals sector was able to play on its strengths in speciality chemicals. The rubber and plastics production index hit a peak in March 2012 having recovered from a sharp drop in December 2011, but declined in the following months. The chemicals index held up throughout 2012 with modest growth in output, indicating that the scenario facing the chemicals and petrochemicals sectors was mixed and volatile.
- The Netherlands' advanced and diversified product portfolio may not be sufficient to offset any further downturn in the EU in 2013 and BMI cautions that a contraction is not off the cards. We expect the slowdown in international trade to affect the deteriorating domestic picture and to feed through into the export-oriented petrochemicals industry. Anaemic economic growth in 2013 will not be sufficient to offset the anticipated stagnation in exports.
- The Dutch petrochemicals industry continues to attract investment with Thailand's Indorama Ventures planning to increase purified terephthalic acid (PTA) capacity at the company's Rotterdam plant by 250,000tpa to 600,000tpa. Completion is due in 2013, and the facility will serve as a major feedstock supplier to polyethylene terephthalate (PET) producers in Western Europe.
- With 73.8 points, the Netherlands remains in second place in BMI's West European Petrochemicals Risk/Reward Ratings (RRRs). A recovery in country risk ratings, even in the face of economic headwinds in 2012, led to a 1.4 point rise in its score, pushing the country up from third place in the rankings. It is now 7.6 points behind Germany and 0.3 points ahead of France.
Executive Summary 6
SWOT Analysis 7
Netherlands Petrochemicals Sector SWOT 7
Netherlands Political SWOT 8
Netherlands Economic SWOT 8
Netherlands Business Environment SWOT 9
Global Petrochemicals Overview 10
Global Oil Products Price Outlook 14
Table: BMI's Refined Products Forecasts, 2010-2016 15
Table: Middle East Outperforms In Terms of Passenger Growth 19
European Petrochemicals Overview 24
Petrochemicals Risk/Reward Ratings 28
West Europe Regional Power Risk/Reward Ratings 28
Table: West Europe Power Risk/Reward Ratings (Scores Out Of 100) 30
Netherlands Risk Reward Ratings 30
Market Overview 32
Table: Netherlands' Olefins Facilities 2010 32
Table: Netherlands' Aromatics and Intermediates Facilities 2010 33
Industry Trends And Developments 34
Industry Forecast Scenario 35
Table: Netherlands' Oil & Gas And Petrochemicals Sector, 2010-2017 ('000 tonnes, unless otherwise stated) 36
Macroeconomic Forecast 38
Table: Netherlands - Economic Activity, 2011-2016 39
Company Profiles 40
LyondellBasell Industries 40
Sabic Europe 42
Glossary of Terms 44
Table: Glossary Of Petrochemicals Terms 44
BMI Methodology 45
How We Generate Our Industry Forecasts 45
Chemicals And Petrochemicals Industry 45
Cross Checks 46
Business Environment Ratings 47
Table: Petrochemicals Business Environment Indicators And Rationale 48
Table: Weighting Of Indicators 49
Country Snapshot 50
Table: The Netherlands' Population By Age Group, 1990-2020 ('000) 51
Table: The Netherlands' Population By Age Group, 1990-2020 (% of total) 52
Table: The Netherlands' Key Population Ratios, 1990-2020 53
Table: The Netherlands' Rural And Urban Population, 1990-2020 53