Industry that pervades our lives – from gasoline to plastics to cosmetics
In an interview, Datuk Sazal Hamzah with Chemical Today Magazine discusses the future of petrochemicals industry amidst volatile crude prices, challenging demand & supply relationship and touches upon sustainable practices.
By Shivani Mody
Trends in petrochemicals industry
The petrochemical industry is thriving. The rising global population and growing middle-class affluence are driving the demand for plastics, textiles, speciality chemical applications, automotive, healthcare, food and agricultural produce. According to the World Bank, world population is expected to reach 8.5 billion by 2030, and escalate to 9.7 billion by 2050. The middle-class population growth will also rise from 1.8 billion in 2010 to 3.2 billion by 2020, and 4.9 billion by 2030.
Most of this growth will come from Asia, with the region representing 66 percent of the global middle-class population by 2030. In China alone, the number of upper middle-class and affluent households is forecast to double to 100 million by 2020. The rise of the middle-income population leads to higher end-customer preference towards high quality and luxury products.
The industry will also be supported by strengthening global GDP growth of 2 to 4 percent for the next 5 years. Crude oil prices were seen to stabilized lately, lending support for firmer petrochemical product prices amidst improved petrochemical demand and tight supply. Crude oil prices have risen from the average of $44 per barrel in 2016 to $51 per barrel in the first quarter of this year. Petrochemical product prices have also escalated and demand has also shown some improvement. Despite these developments, crude oil and by extension, petrochemical prices are expected to remain volatile.
Read more: Datuk Sazal Hamzah, Managing Director & CEO, PETRONAS Chemicals Group (PCG)
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