2008 promises to be an exciting year for the polyethylene business in Europe and now is an opportune moment to look at some of the key drivers expected to impact the market in the coming year.
How will the following drivers impact your business? What is your outlook?
1. Economy: The worldwide economy is expected to growth 3% in 2008 with only a 33% chance of recession emanating from the United States. West European GDP will grow 2.1%.
2. Oil/Naphtha: Oil and naphtha will continue to be volatile. Our strategic energy consulting partner Purvin & Gertz predicts oil prices in the high 80 $/bbl range in the 1st half of the year and the low 80’s after mid-summer.
3. Exchange rate: The EURO will remain firm at an average 1.44 $/EURO.
4. Ethylene: Europe has recently added 500 kta of new ethylene capacity by de-bo ...