Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: Naphtha costs will be crucial in the Israeli petrochemicals industry over the medium term. The
theoretical surplus between supply and demand in the global oil market will grow over the coming years,
precipitating a decline in the price of oil and a corresponding decline in naphtha feedstock costs. For
Israel's relatively small, naphtha-fed petrochemicals industry, this will be crucial to ongoing profitability.
In January-May 2016, the value of plastic and rubber output grew 9.7%, rebounding from a lacklustre year
in 2015 when it fell 0.4%. Chemicals saw growth of 11.2%, building on 1.6% growth in 2015. However,
much of this growth was due to rising product prices on the back of growth in feedstock costs. With
petrochemicals producers seeing margins squeezed in H116, strong headline figures appeared to hide a
market that is stagnating with potential for contraction in volumes.