03 February 2011 14:59 [Source: ICIS news]
PRAGUE (ICIS)--The average petrochemical margin in central and eastern Europe (CEE) in 2010 was 6.5% below the pre-crisis level, Erste bank said on Thursday.
Growing naphtha feedstock prices put a brake on the post-crisis recovery in the margin but "nevertheless, the average attained in 2010 (€285tonne) was quite close to the pre-crisis level of 2005-2007 (€305/tonne),“ it added.
Erste forecast that the average would only edge up to €290/tonne ($403/tonne) in 2011 with the slow economic recovery of CEE causing a lack of pre-stocking effect from industries, as was also experienced in 2010.
"We do not expect any major rebound in the average petchem margins in 2011... Nevertheless, some correlation to GDP growth (weaker in 2011 than 2010) and consumer spending is likely, so [we can] forecast a gradual recovery," the bank said.
"We have €290/tonne predicted for 2011, but the figure could arrive anywhere between €280-€300/tonne, while the relatively low volatility in petchem margins is likely to prevail,“ it concluded.
Raiffeisen Centrobank has noted that Czech petrochemical producer Unipetrol is struggling with what could turn out to be a long decline in its olefin margins, and has also determined that petrochemical margins at Polish group PKN Orlen are stagnating.
($1 = €0.72)
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|