EMIS Emerging Market Information Service EMIS - Chemical Sector Poland

Segment Highlights Fertilizers The high prices of agricultural produce may positively impact the fertilizers sector. The fertilization level is expected to grow by 1.5% this year. The high prices of grains have allowed the sector to report better results. In 2010-2012, the use of fertilizers per 1 ha was on the rise (by 10% in the FY 2010/2011 and slightly less the following year). As a result the use of nitrogen-phosphorus-potassium reached 130 kg/ 1 ha. The most popular products are nitrogen-based fertilizers - they are used by 80% of Polish farmers. Rising domestic demand in Poland allowed fertilizer makers to increase their output (by 7% y/y in 2011 and by 5% in Jan-Aug, 2012). However, domestic demand has been weak in the last few quarters and is expected to rebound significantly only in 2014, which bodes ill for the sector. Plastics Plastics are produced chiefly for the domestic market, which absorbs 60% of output. Key recipients are: the construction industry (it uses nearly 30% of output), packaging and households. Key raw materials are mono- and polymers produced from crude oil and petrochemicals. The economic downturn may continue to hurt the sector's financial results due to weak domestic demand and continued high natural gas prices. The plastics pillar is in for some difficult time due to expected lower foreign demand as well as limitations on the side of domestic demand (as firms are still seeking savings an ????????????????????????????????????????????????AY?%??????????A???????AY????????????????????????????????????????????????????????????????????????????????????????????????!???????T?L????????????????????????????????????????????????????????????AY??????????????? H???????????????????????????????? H???????????????????%??????????????????? H???????????????????????????? H????????????????????()?????????????????????????????????????????????????? ??????? ??????%?????M????????%??????????????%M$????????5??????????????????????((??????((0

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