Chemical Market Associates, Inc. (CMAI) to host 17th Annual 2002 World Petrochemical Conference

On March 20-21, 2002, CMAI will host its 17th Annual World Petrochemical Conference in Houston, Texas, immediately preceding the annual NPRA/IPC Conference.

Houston, TX - On March 20-21, 2002, CMAI will host its 17th Annual World Petrochemical Conference in Houston, Texas, immediately preceding the annual NPRA/IPC Conference. With key product and business managers from around the world in attendance, this forum has proven to be a valuable prelude to the annual NPRA IPC meeting. CMAIs 2001 conference benefited from 570 attendees representing 34 countries and covered a wide spectrum of products and services.

Perhaps unfortunately, the 2001 conference presentations of CMAIs forecasts calling for the development of an even more challenging chemicals, plastics, and fibers market have proven to be quite accurate. From almost every perspective, our industry is experiencing the most demanding of times. This too will pass, but when?

While global energy prices moderated during the second half of 2001, their impact on the global economy was quite severe, especially in energy importing, developing countries. With a significant capacity overhang prevalent today, petrochemical producers will need to closely monitor comparative international oil and domestic natural gas values. Too wide a divergence in these key raw material price drivers can severely limit a country and a companys competitive capabilities. Will energy markets continue to soften, further relieving cost pressures throughout the chain? What will be more competitive, free market gas based or crude oil based derivatives? When will global economies positively respond to lower energy values? How soon will a worldwide recovery take place? Is Chinas entry into the WTO significant? Are assumptions regarding demand still sound given potential energy and economic events? Which products will lead or lag a return to prosperity? What role will the continuing trend toward global mega mergers" play in future business strategies? Are the completed mergers producing the competitive enhancement envisioned? When will the next wave of new capacity arrive? Will future demand be sufficient to absorb it? These important issues, and others regarding the future of our industry, will be the focus of CMAIs 2002 World Petrochemical Conference.

Certainly, the events of 2001 reflect another year packed with dramatic and unparalleled events. Weakening economies became a focal point for many as first the U.S. and then the rest of the world experienced a severe downturn in demand. As economies cooled, oil prices moderated, declining from a daily high of $32.23 for WTI in mid January of 2001 to a daily low of $17.34 in mid November -- a trading range of a very challenging 86 percent. Even more dramatic price movement was evident in U.S. natural gas markets with prices varying by a staggering 410 percent. Derivative prices such as those for international olefins, aromatics, chlor-alkali, and plastics markets were also extremely volatile. As a result, attention has focused on managing dynamic price swings and the development and execution of strategies to return business segments to profitability.

Prospects for strong recovery in chemical and plastics demand are improving with each passing quarter, especially in light of a significant global inventory decline. Current analysis indicates that 2001 industry-wide EBIT (earnings before interest and taxes) for base petrochemicals were a unsatisfactory $-21.00 per ton of base chemical, plastics and fibers production -- even though results in the middle of the year were much improved. CMAI analysis suggests that for 2002, global combined earnings for basic petrochemical products will define the bottom of the current cycle. How soon and how enduring the longer-term profit recovery develops will be a focus of this years industry gathering. The manner in which to position your business to meet the challenges and opportunities arising from future market dynamics will become clearer following your participation in the conference.

A most attractive feature to CMAIs conference this year is an opportunity to hear firsthand from the conferences Keynote Speaker, Mr. Theo Walthie, President of Dow Hydrocarbons and Ethylene Oxide/Ethylene Glygol, as he provides informative insight into the challenges and opportunities encountered as a global leader in todays market environment. Especially interesting and informative for conference participants is Mr. Walthies exceptional insight into the challenges and opportunities surrounding the realization of global acquisition synergies arising from Dows acquisitions.

Register and submit payment on-line at www.cmaiglobal.com or contact CMAI by
email: conferences@cmaiglobal.com, phone: 1-281-531-4660, or fax: 1-281-531-9966.

CMAI is a global petrochemical, plastics & fibers consulting firm that services a wide range of companies all over the world. Since 1979, CMAIs goal has been to provide accurate, timely consulting services for the worldwide petrochemical, plastics, fiber and chlor-alkali industries. CMAI maintains offices in Houston, London, and Singapore. Clients to CMAI services include chemical and oil companies, engineering & construction companies, banking and financial institutions, plastic converters, government agencies and trading companies.