Petrochemical Feedstock Market Forecast, Trend Analysis & Competition Tracking - Global Review 2020 to 2030

Status : Ongoing | Report Code : FACT5525MR

Petrochemical Feedstock Market: Overview and dynamics

A substantial portion of petrochemicals, are derived from fossil fuels such as natural gas and crude oil. The remainder comes primarily from coal and biomass. Petrochemical plants are the building blocks for other processes and products which convert the natural resources to petrochemicals. These plants are increasingly complex and require energy in enormous quantities, specifically the distillation stage which involves separating the hydrocarbons from fossil fuels.

These hydrocarbons are then sent to the "crackers" plants which convert them into useful chemicals called Feedstocks. Petrochemical plants are the powerhouses that cover petrochemicals for natural resources and are used as building blocks for other processes and products. Petrochemical feedstock refers to any kind of unprocessed material used as a raw material for transformation to another end product in a manufacturing process.

Petrochemical feedstocks are derived from the refining process of petroleum which are used for the manufacturing of chemicals, synthetic rubber and a wide variety of plastics. Petrochemical Feedstocks are classified as olefins (including ethylene and propylene) and aromatics (including benzene, toluene and xylene isomers) and methanol.

Naphtha was the largest feedstock of petrochemicals used globally, followed by natural gas, coal, and ethane. The chemicals after refining (including ethylene, propylene, benzene, toluene and xylene isomers) are produced and are led to form many by-products in the refining process. These industries are now focusing on by-products of petrochemical feedstocks and converting them into useful products like soaps, detergents, solvents, fertilizers, drugs, pesticides, epoxy resins etc.

Technical advancements is helping the industry to get more chemicals from the petrochemical feedstocks. The US petrochemical industry is undergoing rapid changes and the future of the industry is influenced by shifts in end-use market demand, changes in feedstock dynamics and overcapacity. There seems to be a steady but probably massive improvement in the world petrochemical industry. Many factors in the end or the upstream petroleum and gas industries alter the way they add and use the capacities of basic chemicals.

Petrochemical feedstocks are also used for the manufacturing of the Industrial and household products like soaps, detergents, solvents, fertilizers, Drugs, pesticides and epoxy resins etc. The global markets of petrochemical feedstocks are likely to increase in the upcoming forecast period because of its applications and advancements.

COVID-19 Impact Insights

Covid-19 introduced many restrictions around the globe and hampered the growth of petrochemical industries. The novel virus led to massive disruption in business administration and hit many medium and large scale industries. Petrochemical Industries are shuttered all around the world due to the shortage of feedstocks, logistics sectors, supply chain and materials.

The cycle, manufacturing to sales have been disturbed by the virus and the wide range of chemicals obtained by feedstocks of petrochemicals are stored in the containers have been turned as no use in the lockdown due to the unavailability of industrial logistics sector and the demand for the refined chemicals considerably decreased. Moreover, the instability of the new macroeconomic climate shaped by COVID-19 worries most business leaders.

In the first quarter of 2020, the oil, gas and chemicals markets were unexpected turning points. The dual impact on these sectors, which were already faced with challenges for the longer-term developments, reverberated through the economic downturn and oil price crash. These trends affected the final markets for chemicals, particularly automobiles, buildings and petrochemical feedstock.

With the arrival of COVID-19, the situation has become more complex by depriving the automobile and building industries (and many other sectors) and undermining the supply chains that already exist. Performance improvements and improved reliability have largely guided the increased use of digital technology by oil, gas and chemicals companies. Advanced demand sensing, improved operational optimization and increased use of simulations in silicon have created positive results for many firms across such industries.

In addition, the customer worries about carbon emissions have stimulated investments in renewable energy, energy-efficiency and transport decoration. Customers have also given higher priority to sustainability, and have thus taken into account goods based on factors such as carbon footprint. Manufacturers are now strategizing in a way such that they save and use their products by coupling them with new technologies without compromising the health of employees in the Industry.

Segmentation Analysis of Petrochemical Feedstock Market

The global Petrochemical feedstock market is bifurcated into two major segments: feedstock type and region.

Based on Type, Petrochemical feedstock market is segmented as follows:

  • Naphtha
  • Natural gas
  • Coal
  • Ethane

Based on region, Petrochemical feedstock market is segmented as follows:

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia and Oceania
  • Middle East & Africa

Petrochemical Feedstocks Market: Regional Outlook

North America is the highest producer of petrol followed by middle-east and Russia. In regional country markets, Germany is the highest revenue maker from petrochemicals followed by the United States, because of the rapid development of industries and products from petrochemicals. Being highly advanced in the industrial sector, the European base oil refining industry increasing its revenues followed by North America. The rising demand for petroleum by-products resulted to increase in the market of petrochemical feedstock.

In the United States, natural gas liquids (NGL), in particular ethane, account for about 90% of US petrochemical feedstock production, due to the relative abundance of light oil and natural gas. In addition to that, naphtha is a petrochemical feedstock, which accounts for around 70% of European and Asian production of petrochemical feedstock. As the petrochemical companies of the United States use ethane and other natural gas coproduced LNG feedstocks, ethane prices are associated with prices of natural gas.

Since oil is sold on the international market, the prices are more or less the same, vary depending only on quality and access to infrastructure in all countries. Nonetheless, the regional gas markets are however regional in nature. In other words, North America's natural gas price mainly affects producers in North America. So the competitive benefit of US petrochemicals is that natural gas prices are low in contrast to international oil prices.

Besides rising upstream supply, petrochemical feeder prices tend to be affected significantly by refinery operations, which indicate that a global energy value chain is increasingly interrelated. In addition, productivity is influenced by competition between feedstocks. These factors are responsible for the development of the overall market for petrochemical feedstock.

There are only two applications for ethane, one as a petrochemical feedstock and the other as fuel. The refinery by-product naphtha is used by petrochemical companies in Europe and Asia. Moreover, the development of new technologies based on feedstocks is expected to positively impact the supply and provide impetus to the development of petrochemical feedstock market during the forecast period 2020-2030.

Petrochemical Feedstock Market: Key players

Some of the vital players covered in the petrochemical feedstock report are BASF, Dow Chemical, ExxonMobil Chemical, LyondellBasell Industries, INEOS, SABIC, Formosa Plastics Corporation, Sumitomo Chemical, Reliance, and Chevron. Manufacturers are adopting a blend of organic and inorganic strategy so as to improve their global footprint and increase their share of the market in the longer run.

Key players in the petrochemical feedstock market are the driving members in regional and global markets. Based on end-uses, all petrochemical industries are coming with new strategies and increasing their revenue from the target segments in the global markets. For instance, BASF is the German-based petrochemical firm producing new end-products according to the customer use and global trends that will lead to increasing their global revenues from new products.

The research report presents a comprehensive assessment of the petrochemicals feedstocks market and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data. It also contains projections using a suitable set of assumptions and methodologies. The Petrochemical feedstock market report provides analysis and information, according to market segments such as geographies, product type, material type and end-use.

The Petrochemical Feedstock Market Report Covers Exhaustive Analysis On:

  • Petrochemical Feedstock Market Segments
  • Petrochemical Feedstock Market Dynamics
  • Petrochemical Feedstock Market Size & Demand
  • Current Trends/Issues/Challenges
  • Petrochemical Feedstock Market Competition & Companies involved
  • Technology
  • Petrochemical Feedstock Value Chain

The Petrochemical Feedstock Market Regional Analysis Includes:

  • North America (U.S., Canada)
  • East Asia (China, Japan, South Korea)
  • Europe (UK, Germany, Spain, France, BENELUX, Italy, Rest of Europe)
  • Latin America (Mexico, Brazil, Argentina, Chile, Peru)
  • South Asia & Oceania (India, ASEAN, Australia and New Zealand, Rest of South Asia & Oceania)
  • The Middle East and Africa (GCC Countries, South Africa, Northern Africa, Turkey, Rest of MEA)

The Petrochemical feedstock market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts, and industry participants across the value chain. The High-Performance films report provides an in-depth analysis of parent market trends, macroeconomic indicators, and governing factors along with market attractiveness as per segments. The Petrochemicals feedstock market report also maps the qualitative impact of various market factors on market segments and geographies.

The Petrochemical Feedstock Market Report Highlights:

  • A detailed overview of the parent market
  • Changing market dynamics in the industry
  • In-depth market segmentation
  • Historical, current and projected market size in terms of volume and value
  • Recent industry trends and developments
  • Competitive landscape
  • Strategies of key players and products offered
  • Potential and niche segments, geographical regions exhibiting promising growth
  • A neutral perspective on market performance
  • Must-have information for market players to sustain and enhance their market footprint.

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Petrochemical Feedstock Market Forecast, Trend Analysis & Competition Tracking - Global Review 2020 to 2030