US tariffs worsen petrochemical sector challenges, executives warn

Core Viewpoint - The U.S. tariffs are significantly impacting the petrochemicals sector, leading to a potential 15% decline in global petrochemical trade, with China redirecting its exports to Asia [1]. Group 1: Impact of Tariffs - The petrochemical trading sector has already experienced a 34% decline over the past five years, and if tariffs persist, an additional 15% drop is anticipated [2]. - Tariffs are fostering protectionist policies among countries, complicating short-term investment planning due to overcapacity and market volatility [3]. Group 2: Market Dynamics - Chinese products are increasingly entering traditional markets in South Asia and Southeast Asia due to U.S. tariffs, affecting local suppliers [4]. - Petronas Chemicals Group is diversifying into specialty chemicals to adapt to the changing market dynamics caused by China's increased presence in Asian markets [4]. - The company has acquired two firms in Europe to enhance its technological capabilities for the Asian market [5].