Petrochemical Overview & Opportunities for PIB in the lubricants.

Transcription

1 Petrochemical Overview & Opportunities for PIB in the lubricants. Camila Tessari Marketing Especialist August, 2016

2 Agenda 1. Braskem 2. Crude Oil Overview 3. Brazilian Petrochemical Overview 4. The Uses of PIB in the Lubricants

3 Petrochemical Industry Competitive Integration Braskem EXTRACTION Basic feedstocks 1 st GENERATION Basic Petrochemicals 2 nd GENERATION Thermoplastics Resins 3 rd GENERATION Plastics Processors NAPHTHA GAS ETHANOL SALT ETHYLENE PROPYLENE CHLORINE/ SODA PE PP PVC

4 Products Basic Petrochemicals OLEFINS AROMATICS FUELS SOLVENTS SPECIALTIES Polymers PE PP Green PE EVA SODA PVC

5 Braskem in numbers Braskem operates in more than 70 countries worldwide, establishing itself as an important global player in the thermoplastics resins and chemicals market MEMBERS CLIENTS In more than: 70 COUNTRIES GROSS Revenue: 54 R$ BI (US$ BI) NET R$ BI Revenue: 47 (US$ BI) EBTDA: R$ 9.4 BI (US$ 2.8 BI) EXPORT US$ Revenue: 7.2 BI INDUSTRIAL Units: 36 Innovation INVESTMENT R$ 2.4 MI & technology (US$ 7 14 MI) Source: Braskem Annual Report 2015.

6 Agenda 1. Braskem 2. Crude Oil Overview 3. Brazilian Petrochemical Overview 4. The Uses of PIB in the Lubricants

7 Crude oil demand increase led by Asia, Middle East and North America Crude oil demand evolution* Million barrels/day Source : WoodMackenzie * NGLS included

8 Crude oil global demand increase may overcome supply in 2016 and 2017 Reduction of oil production caused by non OPEP members Oil* Supply /Demand increment Year variance Million barrels/day Supply increment Year variance Million barrels/day Source : WoodMackenzie * NGLS included

9 Low oil prices contribute to lower production levels, mainly in USA Oil* Supply Non-OPEP Year variance Million barrels/day Source : WoodMackenzie * NGLS included

10 Better Supply/Demand balance influencing oil price recovery Oil price US$/bbl Source : WoodMackenzie

11 Other factors that can impact oil price projection Global economy deterioration, especially China Potencial production increase by Iraq and Iran No production reduction by non-opep countries, repeting 2015 and generating oversupply Low oil price scenario impacting demand Crude inventory drop could cause strong market reaction Source : WoodMackenzie

12 Agenda 1. Braskem 2. Crude Oil Overview 3. Brazilian Petrochemical Overview 4. The Uses of PIB in the Lubricants

13 Brazil economy retraction for 2016 Fiscal problem persists in relation to the political stalemate, increasing external risk perception. GDP Growth Year % ,8-3,7 Low confidence from consumers and executives postpone consumption and investments Higher unemployment rates External risk perception increase with fiscal and political issues Economy recovery expected from 2017 Source : Santander

14 Brazil GDP reduction impacted local industry Chemical industry is the 4th in importance level for the Brazilian GDP Industry participation Year % Source : IBGE

15 Braskem solution to the brazilian crises : Exports increase. Braskem exports kt

16 Conclusion Global macroeconomic scenario presents risks, with China slowdown and possible higher interest rate from USA. India is a positive surprise. Crude oil prices expected to recover in short term, with better supply/demand balance, but is not expected to return to the 100 US$/bbl level in the short/medium terms. Petrochemical market is cyclic and investments are not coordenated, which brings volatility to the sector returns and margins. Brazilian economy is challenging with political and fiscal issues, consumption slowdown, unemployment and consequently GDP reduction. Brazilian Petrochemical Industry is challenged by structural issues ( feedstock competitiveness) and also national conjuncture (energy costs...). Reduction in the industry participation (Brazilian GDP) and idle capacities in the chemical industry increase the need and importance of our exports.

17 Agenda 1. Braskem 2. Crude Oil Overview 3. Brazilian Petrochemical Overview 4. The Uses of PIB in the Lubricants

18 CHEMICAL SPECIALTIES PIB A highly versatile product, present in several applications such as lubricants, stretch film, adhesives, sealants, among others, providing important technical properties. Braskem s PIB is nontoxic, meet the requirements for applications in cosmetics and food and it has NSF certification.

19 Braskem operation Major Latin America PIB producer Local Production (36 kty capacity) Market focused Global Presence 80% Brazilian Market Share Local technical assistance Laboratory

20 PIB : Brazilian Market 18%, Imports 13 kt/y ; +/- 3% global market Main market drivers : Automotive Industrial GDP Lubricant Specification Adhesives & Sealants Main Applications Others Industrial Lubes Lube & Fuel Add.

21 PIB : Opportunities Brazilian MVI imports : +/- 6kt/y Basic Oil imports (GIV,GV) 2 Stroke segment Bio Lubricant HR PIB

22 Thank You! Camila Tessari Marketing Specialist August, 2016