Wednesday, August 21, 2013

[KMTI] Navigating Major End-User Industries : Petrochemicals

Investment Projected at 6.3 Trillion Won in 2013

The Korean petrochemical industry's investment and exports in 2013 are likely to increase slightly from 2012 - investment to 6.5 trillion won from 6.3 trillion won and exports to US$46.6 billion from US$45.8 billion.

Chinese demand for Korean petrochemical products has led the growth of related enterprises. However, the industry may find it hard to sustain quantitative growth, which has depended on the growth of the Chinese market, in the future and market conditions are not stable either due to rapid expansion of facilities for non-petroleum base materials. Therefore, there is a high possibility that long-term and average profitabilities may decline.

China's per-capita consumption of general purpose plastics is 39kgs, exceeding the world's average of 26kgs by 50%. China's per-capita GDP had continued rapid growth until reaching he US$3,000 level, but after crossing US$4,000, the rate of consumption growth of plastics vs. economic growth slowed remarkably, so consumption is expected to slow continuously in the future. Meanwhile, the Korea Petrochemical Industry Association (KPIA) revealed that in 2013, the industry will see investment of 6.5 trillion won, up 200 billion won from 2012, and achieve US$46.6 billion in exports.

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