Written by The Banking Post
The global petrochemicals industry is bracing for further disruption as U.S. tariffs intensify pressure on an already oversupplied market, industry leaders warned at the APPEC conference in Singapore on Tuesday.
TotalEnergies executive Ganesh Gopalakrishnan said petrochemical trade could shrink by another 15% if tariffs remain, on top of a 34% fall over the past five years caused by overcapacity. “Trading houses without assets are struggling to survive,” he told Reuters.
China, the world’s top producer, has shifted exports from the U.S. to Asia, crowding into markets from South Asia to Vietnam. “Our main markets are being attacked by China because they cannot supply into the U.S.,” said Bahrin Asmawi, chief commercial officer of Malaysia’s Petronas Chemicals Group.
To counter the pressure, Petronas is moving into specialty chemicals and acquiring European firms to bring new technologies to Asia.
Tariffs are also fueling protectionism and uncertainty, making investment planning harder, said Sanjiv Vasudeva of Haldia Petrochemicals. Still, he noted that India’s consumption remains strong, providing a rare bright spot for the industry.
