The global ethylene capacity is expected to grow to seven million tonnes per annum (mtpa), thus putting pressure on margin forecast.
KUALA LUMPUR: The global ethylene capacity is expected to grow to seven million tonnes per annum (mtpa), thus putting pressure on margin forecast, said Petroliam Nasional Bhd President and Group Chief Executive Officer Tan Sri Wan Zulkiflee Wan Ariffin.
He said that the company anticipated the price would decline from US$550 (US$1=RM4.09) per metric tonne next year to around US$350 per metric tonne by 2025.
“As such, the industry is aggressively pursuing growth in speciality chemicals to benefit from higher product spread as opposed to commodity chemicals. “The industry also needs to brace for the ongoing US-China trade war impact,” he said in his opening speech at the 39th Asia Petrochemical Industry Conference (APIC) 2018 themed “Creating Value for Collaboration”. More than 4,000 people attended the two-day conference which began yesterday.
Expounding on the opportunities and challenges for the industry, Wan Zulkiflee said the United States' shale-backed petrochemical expansion and integrated petrochemical projects from India, China and Middle East would push olefins and derivative supply to the region.
“ As we face these market dynamics, we must also contemplate the industry's preparation for the future.
“This is where associations such as the Malaysian Petrochemicals Association and other regional associations play an important role in fostering a collaborative spirit and initiate strategic dialogues in a well-orchestrated and cost-effective manner,” he added.
Meanwhile, International Trade and Industry Deputy Minister Dr Ong Kian Ming reiterated the government's commitment in ensuring that the country remained open to international trade and investment.
“We want to position Malaysia as an ASEAN hub for exporting value-added goods, namely petrochemical based or otherwise, to China and the US.
“We will work to ensure that our manufacturers and investors can continue to leverage the high-growth rate in Asia, which is driven by rapid urbanisation and income growth,” Ong said.
He also said that it was imperative for industry players along the value chain to work together to find innovative solutions, with focus on diversifying downstream manufacturing.
“We hope to see more players come up with innovative products, reduce single-use plastics and increase products that can have a longer lifetime in use,” he added. - Bernama
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