Global overcapacity with no major demand recovery continues to weigh on the operating rates and profitability of petrochemical companies worldwide. Domestically, while margins are elevated for some petrochemicals amid West Asia-driven supply constraints, post normalisation of situation, new capacity additions and low-cost imports will compress producer margins despite resilient demand. This is likely to persist in the near to medium term.

Global demand for petrochemicals remain tepid, especially in some of the major chemical-consuming nations, which is likely to keep global volume growth under pressure in the near term