The latest South Africa Petrochemicals Report anticipates a gradual recovery in the domestic industry led by construction activity, restocking of inventories and growth in the regional market, although competition from Asia poses a long-term threat to the sector.

Although South African manufacturing output continued to contract in Q409, the rate of decline was slower than the record 21.6% fall reported in April 2009 and largely related to non-chemicals divisions. Especially, the polyvinyl chloride (PVC) segment has been lifted by strong growth in construction

The reoport forecasts construction growth rate of 12.8% in 2009 and 8.9% in 2010, making South Africa's construction industry one of the best performers worldwide and stimulating demand for construction products using PVC. The main driver behind this activity is the country's preparations for the 2010 FIFA World Cup, which is compelling the construction of stadia and hotels as well as investment into the country's transport network, with airports and rail as the focus.

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Posted by mopeng at March 5, 2010 11:26 AM