COVID-19 pandemic has significantly impacted the global economy in 2020. Growth across key Asian economies is expected to rebound in 2021, as the containment measures and stimulus packages are likely to increase economic activities and drive petrochemicals demand in the region, says GlobalData, a data and analytics company.
John Paul Somavarapu, Oil and Gas Analyst at GlobalData, comments, “The regional capacity additions are largely concentrated in China, targeting self-sufficiency to meet the country’s existing and growing petrochemicals demand. China is followed by India and Indonesia, also capitalising on their growing demand. The COVID-19 outbreak and lower crude prices have prompted petrochemical majors in the region to announce project delays. Projects under early stages of development are likely to be postponed, as companies look to re-evaluate their investment strategies.”
Polymer demand in Asia was affected due to lockdown measures undertaken by governments to contain the COVID-19 pandemic. However, recent uptick in industrial/business activities and gradual re-opening of economies are set to strengthen the demand for polymers. The demand from key end-use segments such as construction and automotive have been affected, as sluggish demand and manufacturing supply chains have lowered the growth. However, demand from packaging and healthcare sectors would sustain the growth of the industry.
Somavarapu concludes, “The COVID-19 pandemic is unprecedented, and companies have responded by developing strategies and implementing stringent measures to battle this economic uncertainty and weakened growth. Companies are channelling their capital investments towards maintaining existing asset base and are undertaking strategic review of the current scenario and scheduling their growth projects accordingly.”