Chemical Competitive Cost and Margin Analytics

Assess the cost and margin positions of operating chemical plants according to geography, capacity, time, technology, feedstock, operating rate and integration level.

How confident are you in your ability to evaluate the long-term competitiveness of operating plants?

The Chemical Competitive Cost & Margin Analytics (CCMA) 12-months subscription provides an excel model, updated on a quarterly basis, aligned to IHS Markit comprehensive production capacity database, technology and economic evaluations and long-term price forecasts. The service provides an interactive tool with the full functionality needed to effectively perform your longer-term strategic analysis and benchmark the competitive position of operating chemical plants. Key features include:

Production cash cost and margin estimates, identified by individual plant
Functionality to generate estimated economics for hypothetical plants
User-defined price adjuster model, from product price to immediate feedstock level and global crude oil price
Annual cost/margin curves: 5 years history and 10 years forecast
Monthly cost/margin curves: 3 months history and 15 months forecast
Global plant list with technology and capacity data
Regional feedstock, by-product and utility price forecasts
Energy price basis and energy outlook
Executive overview and methodology

IHS Markit Cost Curve Scenarios:

What would happen to the world cost curves for Ethylene and Polyethylene-HDPE if oil prices don’t rise to the IHS Markit forecast?

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How do our clients use the Chemical Competitive Cost & Margin Analytics service?

Understanding the structure of chemical production costs requires an extensive amount of time and workforce resources collecting data and analyzing macroeconomic trends, cost drivers and supply/demand of specific chemicals from disparate sources in order to assess competitiveness and optimize profitability. Whether you are strategic planner, engineer or technology manager, commercial manager or financial analyst, the Chemical Competitive Cost & Margin Analytics aligns with your business workflows to empower your strategic objectives and investment plans. Our clients use the service for:

COMPETITIVE BENCHMARKING	PORTFOLIO IMPROVEMNT	PROCUREMENT STRATEGY
Evaluate competitive position of existing assets locally, regionally or globally	Understand risk and exposure to feedstock price fluctuation	Understand cost structure of raw material suppliers to inform contract negotiations
Review cost & margin estimates for competing assets by location and technology	Assess relative competitiveness of future hypothetical assets	Evaluate cost & margin dynamics to inform price setting
Understand impact of new capacity to existing assets performance	Build value based commercial strategies	Identify feedstock cost advantages from integrated producers
	Explore how economics shift under different future price scenarios	Understand sensitivity to industry shifts

By combining our global expertise with flexible functionality, IHS Markit helps you answer these questions:

How will new capacity additions affect the competitiveness of my existing operating plants?
Who are the most cost advantaged and disadvantaged producers?
Is my capital investment viable in the long-term?
What is the feedstock cost advantage of an integrated plant?
How will a shift in oil, feedstock or chemical prices impact competitiveness?
I need to renegotiate contracts ─ what are the upstream and downstream cost structures in my value chain?

Available Products – 46 product models covering over 6,000 plants

Acetic Acid	Ethylene Dichloride	Polyethylene (HDPE, LDPE, LLDPE)
Acrylic Acid	Ethylene Oxide, High-Purity	Polypropylene
Acrylonitrile	Expandable Polystyrene Formaldehyde	Polystyrene
Adipic Acid	HMDA	Polyvinyl Chloride
Ammonia	Methanol	Propylene
Benzene	Methyl Methacrylate	Propylene Oxide
Bisphenol-A Butadiene	Mixed Xylenes	Soda Ash
Butanediol	Monoethylene Glycol	Styrene
Caprolactam	MTBE	Styrene-Butadiene Rubber
Chlor-Alkali	Nylon 6 & Nylon 6,6	Terephthalic Acid
Cumene	Paraxylene	Toluene
Cyclohexane	PET	Urea
Dimethyl Ether	Phenol	Vinyl Acetate Monomer
Ethylbenzene	Polybutadiene Rubber	Vinyl Chloride Monomer
Ethylene	Polycarbonate

Coming Soon

Butyl Acrylate
EPS

** IHS Markit will be increasing the products offered to build a full library of solutions. For products of interest not listed above, please contact us.

Complementary Services

World Analysis

On-line access to historical and 10-year forecasts of chemical production capacity data, supply/demand balances, country-by-country trade grids and 10-year price, cost and margin forecasts. Certain studies also provide production economics, production process and technology overviews as well as derivative capacity data and analysis, and summaries of the strategic issues, sensitivities to the forecasts and emerging trends impacting global and regional markets.

Process Comparison & Cost Tracker

The interactive tool allows companies to determine and validate the optimum capital investment, by evaluating how state of the art commercial and emerging processes compare and compete, across a variety of real world environments and hypothetical situations. Interrogate up to 500,000 economics data points, and adjust the analysis based on technology, capital and production economics, time, total project cost, geography and environmental impact to understand the viability of future projects.

Process Economics Program

In-depth, independent technical and economic evaluation with user-interactive models of over 2000 commercial and emerging technologies for the chemical, biochemical, and refining industries. The service provides analysis of the impact of changes in processes, feedstocks, energy prices, and government regulations on chemical and fuel production economics for our clients.

Customer Stories

Braskem Idesa builds advantage with bold strategy and largest petrochemical investment in Mexico in 30 Years

For its landmark Etileno XXI project, this company -- a joint venture of the premier thermoplastic resins producer in the Americas and one of Mexico’s leading petrochemical groups -- secured a total investment of $4.5B to build the largest petrochemical facility in the Americas, capable of producing 1+ million tons of ethylene and polyethylene annually.

SEE CASE STUDY

National Oil Company Develops Informed Strategies for Growing Chemical Business in Changing Global Market

This national oil company wanted to give investors confidence so they developed a two-pronged strategy to grow its core oil business and set the stage for launching a new chemical business, while staying abreast of market changes and avoiding up to $4 billion in potential costs/risk to its reputation.

Learn more about our client’s successes

Toray Industries America Implements Strategic Roadmap to Uncover New Markets for Aggressive Growth by 2020

This US subsidiary of the global industry leader – with headquarters in Japan and operations in 25 countries – compiled a list of more than 400 market opportunities before selecting 5 priorities and developing action plans to accelerate entry and increase traction in new markets. All five plans were approved by the parent company's CEO.

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Alberta's Industrial Heartland Association Uncovers Strengths and Attracts Unprecedented Interest from Global Investors

Dedicated to promoting sustainable development of Canada’s largest hydrocarbon processing region, this leading association gained objective, third party expertise/credibility for investor research that identified Alberta's 4 most competitive chemical products -- and brought 11 companies to Alberta for tours and discussions .

Learn more about our client’s successes