US Tariffs Deepen Woes for Petrochemical Industry, Executives Warn at APPEC

At the Asia Pacific Petroleum Conference (APPEC), top leaders in the petrochemical sector issued stark warnings about the detrimental effects of U.S. tariffs on global industry dynamics.

Key Highlights from the APPEC Conference:

Trade Collapse Risk: Ganesh Gopalakrishnan, head of petrochemical trading at TotalEnergies, cautioned that continued tariffs could trigger an additional 15% decline in global petrochemical trade, on top of the 34% drop seen over the past five years due to overcapacity and weak margins.

Strain on Trading Firms: Companies without physical assets are particularly vulnerable. Sanjiv Vasudeva of Haldia Petrochemicals highlighted growing protectionism, making short-term investment decisions increasingly challenging. India, however, stood out as a rare bright spot with stable consumption.

Market Disruptions and Shifting Flows: Bahrin Asmawi, Chief Commercial Officer at Petronas Chemicals Group, noted that Chinese petrochemical products are now flooding traditional markets in South and Southeast Asia as they get redirected due to U.S. restrictions.

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