In 2010 the petrochemicals industry in Eastern Europe started to recover from the 2008-2009 worldwide economic crisis.
Czech Republic
The Czech petrochemicals industry is heavily influenced by economic trends in Germany, the country’s largest export market for petrochemicals-consuming industries. The Czech petrochemicals industry is set to endure weakening growth over coming months, with a significant risk of a contraction going into 2011 as it suffers from the slowdown in demand from the eurozone. Export weakness, particularly for key petrochemicals-using industries, such as the automotive sector, is dragging down the recovery of the industry. Key sectors determining output are the construction, automotive and consumer goods industries.
The Czech Republic in 2010 had petrochemicals capacities of 545,000tonnes per annum (tpa) ethylene, 210,000tpa butadiene, 335,000tpa benzene, 320,000tpa ethylbenzene, 20,000tpa toluene, 355,000tpa HDPE, 300,000tpa PP, 170,000tpa styrene monomer, 90,000tpa PS, 140,000tpa vinyl chloride monomer, 120,000tpa PVC and 360,000tpa ammonia.
Poland
The revival of the Polish petrochemicals industry is being led by domestic consumption. Developments related to the Euro 2012 Football Championship are contributing to a return to solid growth in the construction sector, but the weakening of the European automotive market is affecting domestic carmakers.
The future of the Polish petrochemicals industry will be determined by the restructuring and divestment of local petrochemicals producer PKN Orlen, which is selling off several non-core subsidiaries as part of its strategy for the period up to 2013. However, the company is also pressing ahead with several major expansion schemes, including the construction of a 400,000tpa plant to produce paraxylene and purified terephthalic acid (PTA). It is likely that Orlen will seek to sell iTs Lietuva refinery, which would effectively end Orlen’s plans for expanding propylene production at the refinery
Hungary
The weak value of the forint could be crucial to the recovery of the Hungarian petrochemicals industry, giving it enough competitive edge to secure export-led growth in 2011. The Hungarian petrochemicals industry will come under pressure from continuing lacklustre performance in the domestic market and low levels of activity in the eurozone, which is the country’s main export market.
The LDPE segment declined by 8% to 105,000 tonnes, while PP remained fairly flat, falling 1% to 236,000 tonnes. Total polymer output was up 6% y-o-y to 549,000 tonnes. On a positive note, domestic petrochemicals sales grew 13% y-o-y to 215,000 tonnes, while exports grew by just over 2% to 451,000 tonnes.
Romania
The Romanian petrochemicals industry showed greater stability in 2010. There were strong signs that the industry had stabilised, with growth returning to the sector in 2010, but demand from the domestic durable goods and automotive industries also showed signs of weakening.
Romania had olefins capacities of 200,000tpa ethylene and 100,000tpa propylene with polymer capacities of 120,000tpa HDPE, 160,000tpa LDPE, 80,000tpa PP, 60,000tpa PS and 170,000tpa PVC. The Romanian petrochemicals industry is undergoing a period of merger and acquisition with Oltchim having taken over the operations of Arpechim, helping to integrate olefins and polyolefins production.
Source: Business Monitor International print
