New Market Report: Germany Petrochemicals Report Q1 2016

A fall in chemicals output in Q315 underlined the market volatility affecting the German petrochemicals industry, but the industry is facing up to the challenge of competitiveness through investment in research and development. However, high energy prices related to the government's environmental strategy continue to hinder growth.

Three factors will determine whether the German petrochemicals industry will retain global leadership: cost competitiveness in raw materials and energy; increasing investment in value-added production instead of low value high-volume polymers, and; the performance of external markets, particularly in the eurozone, which absorbs three-quarters of German output.

Cost pressures have been alleviated by lower naphtha feedstock prices, but there is growing concern over the impact of higher energy costs on enterprises that are. Central to these pressures is electricity tariffs linked to the development of renewable energy that penalise heavy energy users. With producers in North America, the Middle East and Asia unencumbered by these pressures, German petrochemicals companies are moving investment abroad. This will stymie attempts to diversify and add value to petrochemicals output through smaller niche enterprises with high capital costs.

Full Report Details at
- http://www.fastmr.com/prod/1075257_germany_petrochemicals_report.aspx?afid=301

Chemicals output is forecast to rise 1.5% in 2015, but with a 2% fall in chemicals prices forecast for the full year amid an expected downturn in H215, the value of overall sales is set to fall 0.5%, the first annual decline in years.

In order to boost competitiveness and diversify output, BASF announced plans in October 2015 to spend a total of at least EUR6bn on investments, upgrading and maintenance measures between 2016 and 2020 at the chemical manufacturing site in Ludwigshafen. This will aim to increase skills levels among staff and ensure the company adds value to output at a time of heightened global competition.

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

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156 (1.413.485.7001 Int'l)

You may also be interested in these related reports:

- Thailand Petrochemicals Report Q1 2016
- Russia Petrochemicals Report Q1 2016
- Egypt Petrochemicals Report Q1 2016
- Spain Petrochemicals Report Q1 2016
- Turkey Petrochemicals Report Q1 2016