BMI has said that the Thai petrochemicals industry is now looking to add value to basic chemicals production following a surge in olefins and polymer capacities over recent years. The country’s petrochemical industry has made rapid progress. The policy of free competition in the industry has led to an increase in investment, as well as production capacity and established manufacturing groups have focused on building a completely integrated industry and are expanding investment opportunities on a global scale.
Industry projects and production
PTTGC is set to lead the expansion of the Thai industry this year. The company’s exposure to high oil prices has been reduced with the recent reduction of the production of naphtha at one of its key crackers and is now utilising natural gas. PTTGC is however planning on commissioning a new plant with 75 000 tpy of butadiene and 25 000 tpy butane capacity. In recent months, Thai petrochemicals producers have been operating close to capacity, which BMI believes indicates that 2014 will see a robust performance for the sector.
Key sector points
- The over supply situation in the Chinese market and growing Indian self-sufficiency as well as the ongoing Eurozone crisis will narrow the range of markets that are available to absorb Thai exports. Due to this prices are likely to soften as margins come under pressure.
- The domestic market is likely to remain somewhat subdued over the coming years as the country’s automotive industry is experiencing a decline in production and there is poor performance in the construction sector.
Adapted from a press release by Claira Lloyd.
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