The worst days are behind chemical firms

The business cycle of Korea's petrochemical industry, which has continued in a long-term downward trend since 1995, seems to have bottomed out in the third quarter of 1999. This can be explained by the fact that price margins remained stable in the fourth quarter despite a sharp fall in the pri...

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Bibliographic Details
Published inBusiness Korea Vol. 17; no. 1; p. 25
Main Author Hyun-Joon, Hwang
Format Trade Publication Article
LanguageEnglish
Published Seoul Business Korea Ltd 01.01.2000
Subjects
Affiliates
Business cycles
Business forecasts
Corporate profits
Crude oil
Crude oil prices
Currency transactions
Domestic markets
Electronic commerce
Financial performance
Industrywide conditions
Interest rates
Investments
Petrochemicals industry
Petroleum refineries
Profitability
Raw materials
Seasons
Statistical data
Trends
South Korea
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Summary:The business cycle of Korea's petrochemical industry, which has continued in a long-term downward trend since 1995, seems to have bottomed out in the third quarter of 1999. This can be explained by the fact that price margins remained stable in the fourth quarter despite a sharp fall in the price of both raw materials (naphtha) and petrochemicals products. The recent plunge in prices is mainly attributed to seasonal decreases in demand and clearance of stockpiles that had been accumulated in line with Y2K issues. The long-term upward trend of the business cycle is expected to begin in 2000 and reach a new peak by the end of the first half of 2002. Consequently, an industrywide movement in profit structure and cash flow is expected in 2000 and 2001, with the industry average of growth of EBTIDA reaching 20%.
ISSN:1016-5304