Petrochemical makers battle global glut


Weak margins: A man at an exit of the refinery plants of Chambroad Petrochemicals in Binzhou, Shandong province in China. Asia producers are chasing new markets amid tough conditions. - Reuters

PETROCHEMICAL producers in Europe and Asia are in survival mode as years of capacity build-up in top market China and high energy costs in Europe have depressed margins for two consecutive years, forcing firms to consolidate.

oilThe sector’s weakness is troubling for a global oil industry looking at petrochemicals to keep profits rolling in as transportation fuel demand falls in coming years with the energy transition.

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petrochemical , oil , capacity

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