Industry Analysis & Industry Trends
The Petrochemical Manufacturing industry has been volatile over the past five years, largely as a result of major fluctuations in input prices. Petrochemicals are the main input for this industry, and the collapse of global oil and gas prices in 2014 dragged down industry revenue significantly. In the five years to 2016, IBISWorld expects revenue to decrease as the price of petrochemicals declines further and reduces sales prices for industry products. In the five years to 2021, input price volatility will continue, particularly in the early part of the period. Overall, demand from key buying industries will grow steadily, which will support ongoing growth. Still, increased volatility will cause some downstream projects to be delayed and some establishments to be rationalized... purchase to read more
Industry Report - Starting a New Business Chapter
The Petrochemical Manufacturing industry faces a number of barriers to entry, including the level of capital required. The industry is capital intensive, with hundreds of millions of dollars required to construct a complex that is globally competitive. For example, a world-class ethylene plant is estimated to cost over $1.0 billion to construct.
Given the heavy reliance on various feedstocks, such as natural gas liquids and petroleum, the ability to access a steady supply of competitively priced raw materials is essential. Many of the established players are part of integrated oil companies that operate in integrated oil refining and petrochemical complexes, a position that gives them a significant competitive edge over potential stand-alone newcomers... purchase to read more