Global supply squeeze likely to benefit PetChem

Kenanga Research said the group’s net profit is projected to fall 73% to RM316mil in FY25 before rebounding to RM1.69bil in FY26.

PETALING JAYA: Petronas Chemicals Group Bhd (PetChem) may benefit from an expected tightening in global petrochemical supply in 2026 as capacity cuts in South Korea and plant revamp in China are likely to provide price support.

Kenanga Research said the supply squeeze could come from restructuring among South Korean petrochemical producers and China’s plans to overhaul older facilities.