Officials: US tariffs add to petrochemical sector challenges

Petrochemical industry executives says that US tariffs are piling pressure on a sector already grappling with multiple challenges

Petrochemical industry executives said at a conference in Singapore that US tariffs are piling pressure on a sector already grappling with multiple challenges.

“If tariffs remain in place, petrochemicals trading will see another 15% drop on top of the 34% drop it has seen in the last five years,” said Ganesh Gopalakrishnan, head of petrochemical trading at TotalEnergies, according to Reuters.

Sanjiv Vasudeva, an executive at Haldia Petrochemicals, told the conference that tariffs are making countries more protectionist and short-term investment planning more difficult, given excess capacity and volatility.

He added, however, that Indian consumption remains strong with stable growth, offering a rare bright spot for petrochemicals.

Meanwhile, Bahrin Asmawi, commercial director at Malaysia’s Petronas Chemicals Group, said tariffs are pushing Chinese products into its traditional markets, including Thailand, Indonesia, Malaysia, and Vietnam, as they are unable to access the US.