BMI View: Thailand's petrochemical industry is aiming to add value to basic production of chemicals aftera rise in polymers and olefins capacities in recent years. Leading Thai petrochemicals producer PTTGlobal Chemical (PTTGC) is investing USD5bn from 2017-2022, at a rate of USD1bn per annum. It isaiming to achieve average annual growth of 5%-6% over 2012-2021 with projected revenue of THB800bnby 2022. It expects its sales will hit THB600bn in 2017. By 2022, revenue is projected to grow toTHB800bn. High-value-added polymers and specialty products are projected to contribute 20-25% of itstotal revenue in 2022, up sharply from just 10% in 2012. PTTGC plans to expand its markets to include theelectronics, electrical, automobile and building material sectors, in addition to its existing trade in thepackaging, textile and personal care sectors.
Ethylene output grew 5.5% y-o-y in the first seven months of 2017 following a 4.2% decline reported for2016. Growth was also reported in the PVC segment, which rose 2.0%. However, in most otherpetrochemicals products, there were significant declines with polyethylene (PE) down 7.5% andpolypropylene (PP) down 2.0% as well as a 3.3% decline in benzene output and a 4.2% decline inpropylene. As such, an imbalance has arisen within the supply chain, particularly with the growth inethylene and the decline in polyethylene.
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