No end in sight for suffering petrochemical players

The industry’s place in the value chain of various industries makes it vulnerable to the economic slowdown.

THE global petrochemical industry continues to struggle, and this is showing in the local context with the latest financial performance of Petronas Chemicals Group Bhd and Lotte Chemical Titan Holding Bhd, as both saw losses widening for the financial year ended Dec 31, 2025 (FY25) compared to FY24.

The industry is still looking for an equilibrium to the supply-demand balance, as demand remains tepid for a number of years now and does not look like it will be coming back anytime soon. Oversupply remains a major issue.