China Petrochemicals Report Q2 2013

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China Petrochemicals Report Q2 2013 Mar 20th 2013, 00:00 BMI View: While growth in the Chinese petrochemicals market will be sustained, profits will continue to besqueezed by a combination of rising input costs, weakening downstream markets and surplus capacity.Ethylene capacity is continuing to surge even as ethylene output stagnates, leading to low capacityutilisation and a decline in net imports. This situation will persist over the medium-term even asdownstream polymers capacities grow.The overall value of Chinese petrochemical output grew 12.9% to CNY10.86trn in 2012, but this was notenough to avert a decline in profits due to poor demand. Output registered month-on-month (m-o-m)declines throughout H112 before reb...

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