Download Petrochemical trends H2 2021 Report

Petrochemical trends H2 2021 Report

Global petrochemical supply racing to keep up post-COVID

The global petrochemical industry is expected to keep feeling COVID-19 fallout in the second half of 2021, with prices maintaining record highs in some regions balanced by new capacity startups in others.

• The demand surge in the US has complicated efforts to restock feedstocks, resins and intermediates that were depleted from the historic mid-February deep freeze across much of the US Gulf Coast, which prompted widespread weeks-long plant shutdowns. As a result, US producers expect supply to remain tight through the rest of 2021 amid the chase to meet growing demand.
• Depending on the sector, demand for petrochemicals will see different trajectories of growth.
• As demand for gasoline increases alongside more economic activity, demand for associated blendstocks and aromatics will be supported.
• The global aromatics market is also expected to remain focused on China as vast new capacity growth is expected this year in the paraxylene and PTA markets.
• Since downstream PET demand is expected to increase, feedstock producers may have support in maintaining their margins.
• Polystyrene demand has been relatively strong during the first half of the year and is expected to remain so should the global economy remain firm and projected GDP growth be realized.
• Despite higher crude oil values, the record-high prices seen for resins and intermediates in the first half of the year were expected to soften, as new capacity startups and post-freeze, post-turnaround ramp-ups in the US ease its tight supply situation.