The impact of growth in major Asian economies on petrochemical demand
The COVID-19 pandemic in 2020 severely has affect the global economy. GlobalData said the growth in Asia’s major economies is expected to pick up again in 2021, as containment and stimulus programs may boost economic activity in the region and increase petrochemical demand.
“Increasing production capacity in the region is more concentrated in China and is aimed at achieving self-sufficiency to meet the country’s growing demand for petrochemical products. Next are India and Indonesia, which are growing in demand. The prevalence and falling in crude oil prices have prompted petrochemical giants in the two regions to announce project delays, which may be delayed in the early stages of development because companies want to invest in their own investment strategies.”, said John Paul Somavarapu, GlobalData oil and gas analyst.
Demand for polymers in Asia has been affected as governments have taken strict measures to control the epidemic. However, the recent increase in industrial/ commercial activities and the gradual reopening of the economy will definitely increase the demand for polymers. Due to weak demand and declining growth in the production supply chain, demand in key end-use sectors such as construction and automobiles has been affected. However, demand from the packaging and healthcare sectors keeps the industry growing.
“The COVID-19 pandemic is unprecedented. Companies have developed strategies and taken strict measures to deal with this weak growth and economic uncertainty. Companies use capital assets to maintain an existing asset base and strategically assess the current situation and arrange development projects based on it.” Somavarapu concluded.
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Last updated in: August 10th, 2023