Global Petrochemical Industry Fluctuates Amidst Inflationary Pressure in the first quarter of 2024

The global petrochemical market is facing a decrease in the price trends of petrochemical products due to the constant low demand and oversupply. The manufacturers are facing a tough time due to the declining demand with overloaded inventories, creating difficulties in sales. The prominent petrochemical-producing countries, including India and China, are not unaffected by these global trends.

According to Navanit Narayan, CEO of Haldia Petrochemicals, the analysis states that the situation was similar in the year 2023 because of oscillating feedstock prices and depressed margins. Moreover, the delay in the recovery of the Chinese market caused the stockpiling of petrochemical products, causing the depression in the Chinese Market. Global demand weakens, carrying high inventories and low prices.

On the other hand, the growing independence of Indian companies amidst the low market status is gaining attention. McKinsey & Company, a well-known chemical major, anticipates that the Indian chemical market is expected to attain significant growth by the year 2027. The Indian petrochemical market, along with the chemical industry, practices chemical production in the country’s inventories instead of importing the same from other regions.

Moreover, the contribution of Petrochemical majors, including Indian Oil Corporation and Hindustan Petroleum Corporation, is on the verge of launching a new production plant to synthesize more petrochemical compounds in India. These measures taken by the Indian petrochemical companies are indicating a silver lining for the Indian Petroleum market during the upcoming months of 2024.

According to Procurement Resource, the global petrochemical market is weakening as a result of higher productivity and low demand. The prices remain unstable amid oversupply and declining demand across the continents. The overall market is facing a downstream while Indian companies are promoting self-production and supply policy, marking a significant growth in the global chemical market.