DUBLIN--(BUSINESS WIRE)--Research and Markets(http://www.researchandmarkets.com/research/1af9b3/qatar_petrochemica) has announced the addition of the "Qatar Petrochemicals Report Q3 2011" report to their offering.
China's annual PE demand is expected to grow by 8-9% in 2011 down from 19% in 2010, but new capacity will reduce imports by up to 14% from the 7.4mn tonnes imported in 2009. BMI believes this will be more at the expense of neighboring Asian states while Qatari suppliers will be less affected and should benefit from low domestic ethane feedstock costs. In terms of polymer capacities, the author estimates that China's polymer market self-sufficiency should approach 75% PE and exceed 100% PP in 2011. Given that Qatari polymer production is oriented towards PE with no PP production, it is unlikely to be affected by China's expected PP surplus. Competitive ethane-based production will lead to the shuttering of undersized petrochemical facilities in places like Japan, North America, and Western Europe with rationalization already under way and likely to accelerate in coming years. BMI also expect a rationalization of the Chinese petrochemicals industry, which will have to address the problems of overstocking, lower than expected demand growth and a drastic increase in volumes from Qatar.
Industries Qatar (IQ), the owner of QAPCO and QAFCO, reported a healthy 71% rise in its net profit to QAR2.09bn in the first three months (January-March) of 2011 mainly due to robust sales earnings. Revenue grew faster at 48%, to QAR4bn, while cost of sales rose slower at 27% to QAR1.79bn, thereby leading to a 70% rise in gross profit to QAR2.21bn in Q111. Growth should be sustained well into 2011 with the opening of the QAFCO-5 project, which will raise urea capacity by around a quarter at a time of strengthening urea prices. Qatar has fallen from second place to third in the ratings for Middle East and Africa with 62.0 points, down 1.1 point on the previous quarter due to a decline in its country risk rating. This puts it 1.0 point behind the UAE and 4.6 points ahead of Kuwait. Qatar's progress in raising its petrochemical capacity could still falter due to rising construction costs and tightening lending conditions. Nevertheless, Qatar's petrochemical-specific ratings are strong, with cracker capacity set to increase significantly over the next five years and the country hosting the second largest polyolefins production capacity in the GCC after Saudi Arabia. Underpinned by one of the highest levels of GDP per capita in the world and no history of political tension, Qatar remains a bastion of stability in a highly turbulent region. Qatar's weakness is its relative lack of economic diversification compared with other countries in the region.
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