The Philippine petrochemicals market continues to grow at a strong rate, assisted by economic growth and domestic consumption. However, this is likely to benefit imported petrochemicals which, in spite of planned expansion in the petrochemicals sector, will continue to grow as a proportion of total domestic sales over the long term.
JG Summit Petrochemical Corporation (JGSPC) is building the country's first naphtha cracker plant - with 320,000tpa ethylene capacity - which is set to open from Q114. The development of olefins sources will overcome the main weakness in the Philippine petrochemicals industry, which is dependent on imported ethylene and propylene, as well as aromatics and their derivatives. Domestic supply of olefins feedstock should improve the competitiveness of downstream industries at a time when BMI expects a recovery in regional and global demand. There is potential to double capacity at the site. While capacity is modest by global standards, it does ensure that the Philippine petrochemicals industry will have a future, with potential for further investment and diversification.
In the first 10 months of 2013, however, chemicals performed strongly, with the Philippine value of production index (VaPI) more than doubling compared with the same period in 2012, although plastic declined by an average of 2.8% and rubber grew 2.8%. Rubber and plastic volumes were disappointing in H113, but bounced back going into H213.
The domestic economy is still the picture of health, and it remains the key driver of the country's growth boom, with both investment and private consumption leading the way. As a result of a better than expected H113 performance, as well as a bright outlook over the coming quarters, we have upgraded our 2013 and 2014 full-year real GDP growth forecasts to 6.9% and 6.0% respectively. This should help sustain the local market, thereby ensuring that the domestic petrochemicals industry remains buoyant and that imports grow.
The Philippines Petrochemicals Report has been researched at source, and features Business Monitor International (BMI)'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 Philippines Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Philippine petrochemicals industry.
- Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Philippine petrochemicals market.
- Target business opportunities and risks in the Philippine petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Philippines.
- 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 petrochemicals markets, regulatory changes, major investments, projects and company developments.
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.
Business Environment Ratings
BMI's Petrochemicals Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors (both corporate and financial) in the regional petrochemicals market.
The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Ratings products.
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.
BMI Industry Forecasts
Historic data series (2009-2012) and forecasts to end-2018 for all 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 (US$/bbl) at major global energy trading hubs.
Economic: Nominal GDP (US$bn), real GDP growth (%), GDP per capita (US$), population (mn), unemployment (%), exchange rate (against US$).
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.