There’s no question the past year brought uncertainty and plenty of change for the global petrochemical industry. Global crude futures closed near 11-year lows, while prices of key basic petrochemicals in the US fell to levels not seen since 2008-2009, and resin prices across the Americas tumbled to record lows. Persistent weakness in the global energy complex and shale gas-driven expansions in the US appear poised to shape the pricing landscape of key petrochemical markets in the Americas during the first half of 2016. Download this report to gain an understanding on:

1. AMERICAS
PETROCHEMICAL
OUTLOOK 2016
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There’s no question the past year brought uncertainty
and plenty of change for the global petrochemical
industry. Global crude futures closed near 11-year lows,
while prices of key basic petrochemicals in the US fell
to levels not seen since 2008-2009, and resin prices
across the Americas tumbled to record lows.
Persistent weakness in the global energy complex and
shale gas-driven expansions in the US appear poised
to shape the pricing landscape of key petrochemical
markets in the Americas during the first half of 2016.
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AMERICAS PETROCHEMICAL OUTLOOK 2016

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The reports contains insight into:
• Aromatics: Markets brace for another bearish ride amid weak crude
• Methanol: Major capacity expansions in USG usher new era for market
• MTBE: Outages, gasoline pricing, china demand to weigh heavily
• Ethylene: Supply length to pressure prices despite turnaround season
• Propylene: New capacity, refinery rates key to supply balance, pricing
• Styrene: Healthy margins, arbitrage continue to incentivize producers
• Polyethylene: Domestic, export markets face uncertainty as
expansions loom
• Brazil Polymers: Importers eye improvement in demand in 2016
• Peru Polymers: West coast South America eyes new year with caution,
awaits floor
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AMERICAS PETROCHEMICAL OUTLOOK 2016

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Foreword
Persistent weakness in the global energy complex and shale gas-driven expansions in the US appear poised to shape the pricing landscape of key
petrochemical markets in the Americas during the first half of 2016. Already dealing with oil prices in the $30s/barrel to start the year, China’s economy
sputtering and Latin America’s GDP growth expected feeble for a sixth straight year, slowed by a recession-stricken Brazil, US petrochemical producers
will also have to manage major capacity expansions on the olefins and polyethylene fronts that could further erode margins, some of which were
slashed by 50% or more in 2015. There’s no question the past year brought uncertainty and plenty of change for the global petrochemical industry.
Global crude futures closed near 11-year lows, while prices of key basic petrochemicals in the US fell to levels not seen since 2008-2009, and resin prices
across the Americas tumbled to record lows. So far, the downward momentum has continued, although supply/demand fundamentals could stake
bigger roles over the next few months in North American markets. In South America, basic petrochemicals will continue to be heavily influenced by
crude price behavior and dynamics in the US Gulf Coast region. Other markets, such as PE and methanol, will be steered by major capacity expansions in
North America as well as the rate of China’s deceleration, given supply implications for the region.
This report highlights the key themes that stand to shape the petrochemical industry in the Americas through the first half of the year.
These include expectations of depressed feedstock benzene pricing boosting styrene exports out of the US, the potential for persistent length in olefins
– and resulting weakness in pricing – despite impending turnaround seasons on the cracker and refinery sides, and the possibility of even lower
polyethylene pricing for the region as the first wave of North American capacity expansions, including Mexico’s Etileno XXI project, comes online.
However, stronger demand from the gasoline blending sector could lift toluene and xylene as early as February, while unplanned outages in the USG
could prop up ethylene and propylene, pulling polymers in the process.
AMERICAS PETROCHEMICAL OUTLOOK 2016

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AMERICAS PETROCHEMICAL OUTLOOK 2016
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