New Market Research Report: South Africa Petrochemicals Report Q2 2015

South Africa's polymers markets are in contraction due to the weakening of the rand and the downgrading of the country's credit rating, according to BMI's latest South Africa Petrochemicals Report.

The failure of the rand to recover ground and its deterioration in Q214 has made it difficult to do business, particularly importing raw material which has risen in cost as a result. While the level of demand is similar to 2013, market sentiment is deteriorating with little upside and significant uncertainty. Ratings downgrades in the wake of a strike in the platinum sector has damaged the petrochemicals market, which is reliant on the consumption of plastics in the mining sector.

* Industrial unrest coupled with poor market performance has contributed to our bearish forecast of total vehicle production growth of 2.0% in 2014, a downward revision from 2.7% growth forecast in the previous quarter. BMI believes that continued deterioration in the business environment will lead auto manufacturers and importers to look to neighbouring countries as they increasingly represent a viable alternative for investment.
* BMI forecasts overall 13.5% growth in vehicle production between 2013 and 2018, to around 620,000 units, which should boost consumption of engineering plastics and rubbers used in the automotive industry. However, this is still a downward revision of 12,000 units since the previous quarter, indicating less dynamism in this market sector than previously anticipated.
* In BMI's Middle East and Africa Petrochemicals Risk/Reward Ratings (RRRs) matrix, South Africa ranks seventh, although its score this quarter has declined 0.5 points to 52 points due to a deterioration in market risks. It has a 3.0 point lead over Turkey and is 5.5 points behind Israel, but risks falling in the rankings as countries below South Africa such as Turkey, Egypt and Algeria prepare to raise production capacities.

Full Report Details at
- http://www.fastmr.com/prod/953276_south_africa_petrochemicals_report_q2_2015.aspx?afid=301

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

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