Slowdown in US economy affects petrochem margins of PTTCH
29 Nov '06
1 min read
Price decline is going to affect petrochemical margins by five percent to ten percent next year of PPT Chemicals (PPTCH).
Slowdown of US economy and new supplies from Middle East refineries are going to influence margins between feedstock and finished petrochemicals, official sources said.
Experts predict 0.5 to 1 percent slowdown in US economy this year. Although one-third of export revenue of PTTCH is generated from China, Chinese economy is not sufficient to compensate US economic slowdown.
PTTCH is also forecasting a decline to $540 per ton in 2007 from current $600 per ton. Even after margin declines and shutdown of 60 days for debottlenecking in early 2007, company is estimating revenue growth of five to ten percent for 2007.
Debottlenecking programme is expected to increase output by 150,000 tons to 1.7 million tons per year.
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