Wine is one of the utmost popular drinks consumed worldwide. The escalating demand for wine, because of its unusual taste and health assistances is one of the key aspects boosting the growth of the global wine market. The global wine mar…
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.